Could I get stitched up buying an informal HMO?

Could I get stitched up buying an informal HMO?

10:18 AM, 29th April 2015, About 9 years ago 13

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I have had an offer accepted on a 3 bed house which I am buying, but what worries me is that the house is currently tenanted with 5 rooms being let to individuals, it is an informal HMO being done on the sly as they should really have a licence.

The agent tells me the property will be empty on exchange, but how can I safe guard myself that this will actually happen? What if there is a tenant in there that is on a tenancy that is a controlled tenancy or something other than an AST that I am not aware of and after I exchange I discover this?

I realise I could ask the agent to have the house emptied before exchange, but what if one of the tenants happens to relocate himself back in there, because the agent and the owner were up to some sort of scam against me so that they could sell the house. Obviously paying/bribing this one tenant to leave for a few days then to return so that I get stuffed.

Does anyone know what would be the best way to play this so that I am not exposed and can get the house completely vacant?

Cheers

Joelstitch


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Comments

Puzzler

10:16 AM, 3rd May 2015, About 9 years ago

In some areas only large HMOs require licencing, which would probably not be a 3 bed house as it is defined as over 3 storeys. Are you sure this is the case?

Colin Dartnell

12:11 PM, 3rd May 2015, About 9 years ago

To be honest if you are that worried about the situation then don't buy it. As you want to complete with vacant possession you have nothing to gain over buying elsewhere.

There must be other houses you could buy instead, especially as a cash purchaser.

Neil Robb

21:33 PM, 3rd May 2015, About 9 years ago

Can you not ask for a surrender document from all the tenants giving up the tenancy.

I don't know if it would work but if the landlord is running a HMO without the correct licence then is he not liable to be prosecuted.

I do like your caution but I think if you are this concerned walk away and find another deal.

What makes this one so good

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