Tenants in situ – Previous landlord does not have Gas/Electric/DPS?

Tenants in situ – Previous landlord does not have Gas/Electric/DPS?

9:54 AM, 23rd February 2023, About 4 weeks ago 76

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Hi All, Just a bit of advice please. I am in the process of purchasing my first buy to let and was expecting the property empty on completion.

The agent has now come back and stated that the property is tenanted. The tenants want to stay and the seller wants to sell the property with the tenants as he is in a hurry.

I have spoken to the seller who has advised that he was a first time landlord himself and the tenants were friends of a friend and he has not had any issues with them.

He advised that he got them to sign a generic AST in 2019 but did not know about the Gas Certificates/electric certificates or DPS. He does not have these but will get them done. He did take a deposit of them years ago.

Should I still continue and purchase the property?

Is there anything that can be done to rectify the situation or should just walk away?



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Seething Landlord

10:15 AM, 27th February 2023, About 4 weeks ago

Reply to the comment left by David Houghton at 27/02/2023 - 08:24
You might also find it helpful to update your understanding of the English legal system.

Appeals from the district judge are heard by the circuit judge in the County Court.

steven property118

11:50 AM, 28th February 2023, About 3 weeks ago

Messy, very messy. Alot of landlords will not buy tenant in situ as some errors done cant be fixed, as previously mentioned. If no deposit taken i think the only solution is for the tenants to have it back and never issue another, leave no safty net and having to rely on CCJs - not good. no gas safe and EICR brings its own issues. Id be wanting to see a long history of regular payment and go over the top with due diligence. You may be getting into something you cant get out of and may cost you dearly as well. Consider walking away, no matter how much you paid already, could be a MUCH cheaper option.

shaun carter

8:53 AM, 2nd March 2023, About 3 weeks ago

If you want to pull out its breach of contract you were informed empty.

Steve Riley-Snelling

18:15 PM, 3rd March 2023, About 3 weeks ago

I would walk away simply because you are new to this business and, as Windsor Woman stated, you could be inheriting someone else's problems.

That said, if the seller wants to offload the property, and you really want to go ahead, then a discount of 15% off the agreed price is a start. The following would need to be checked with your lawyer, not a conveyancer, and if course the tenants would also need to agree.

I would get the seller to arrange the gas safety record, EICR, EPC and all the other legal requirements first. Then I would suggest that he/she negotiates with the tenants to get them to sign a deed of surrender of their tenancy effective on the proposed completion date. You would issue a draft AST to them ahead of the date and ensure you comply with all relevant documents re How to Rent, deposits, Right to Rent checks etc and I would want to see evidence that the rent has been paid on the button. You would then issue your AST, with the 2 kilos of other papers, effective on the completion date, collect the deposit and register it with the DPS or TDS.

Or you could just walk away.

Graham Bowcock

9:04 AM, 5th March 2023, About 3 weeks ago

Reply to the comment left by Steve Riley-Snelling at 03/03/2023 - 18:15
Bear in mind that the tenant has no obligation to go along with any of this and, even if they did, the lack of compliance at the outset would still stand. The tenancy would not be regularised by doing any of this.

Rob Gordon

15:31 PM, 13th March 2023, About A week ago

Reply to the comment left by Steve Riley-Snelling at 03/03/2023 - 18:15
Yes, I totally agree, WALK AWAY. Do not proceed with the purchase, this seems to be many problems waiting to happen.

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