Buying a tenanted property however tenants refuse to cooperate, what can we do?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Buying a tenanted property however tenants refuse to cooperate, what can we do?

    Hi,

    First of all, apologies if this is not the right place to put this, as I am not exactly sure does this fall into.

    I am posting my issue here as the real estate agency seems to be running out of options and hopefully we can get some advice on how to proceed.

    I am currently in the process of buying a tenanted house and the lenders cannot issue me an mortgage offer without the surveyor conducting a property valuation. This valuation needs to be done on site, they cannot do remote valuations. A formal offer is needed to exchange contracts.
    Agents have repeatedly communicated with the tenants to request access to the building (first time they said it was okay, but didn't show up, second time they refused, third time they ignored the agent and this has been going for over a month, agents tried to get access to the property since first week of March). The landlord (an overseas one) is aware of the issue and has made it clear to the tenants that there is a sale of this property through the agency.

    Tenants:
    They have a 12 month agreement with a 6 month break in clause with 2 months notice. Tenancy started around mid February 2019 and will run until February 2020 however with the 6 month break in clause, we expect them to move out in August 2019. They are ignoring the agent's calls, emails and he has chased them by sticking notices in the door and in the mailbox.
    As far as I know, they've been paying on time and haven't had any issues so far.

    Estate agents:
    They've chased them in several ways and are thinking on other ways for getting access to the building such as "since they haven't responded in 2 weeks, they will try to enter without their permission". They have also suggested me as a last resort thing should everything fail that we either try to get a lender that allows remote valuations.

    Landlord:
    Landlord wants to sell however he said that he would give serve the notice when we actually exchange contracts. Since we aim to move in ASAP (mid-late August which is exactly 6 months after the 12 month contract) we would have to exchange anytime before mid-late June.

    This is a very frustrating situation because both the seller and the buyer want to make this transaction but the tenants are just delaying it.

    At this moment I am thinking on what can we do? I've thought of:
    1. Landlord gives a notice to the tenants without exchanging contracts so in August they need to legally vacate the place so we can conduct valuation and exchange of contracts. From a landlord's PoV, this isn't good because while I am committed to buying the property, nothing is legally binding therefore I could potentially pull out and the landlords would have served a notice and "damaged the tenant relationship".
    2. I look for a lender that allows remote valuation and we can exchange contracts. From my PoV, I don't like this approach as the rates and the overall cost of the mortgage would be higher. Is it possible to get this offer for the exchange of contracts and then use another one for the completion (move in date). I assume there will be additional costs such as another property valuation for different lenders that I would have to pass to the seller.
    3. As I understand, landlord can have access for either maintenance/repairs or emergency situations (such as flooding) could we actually get access to repair something and have the valuation done at the same time?
    4. Are there any legal ways where we can get access to the building? It cannot be that if tenants have gone rogue, refused entry, landlords cannot do anything about it (imaging if they were literally destroying the property in the inside or they've died?) Article 21 is only for evictions after fixed tenancy agreement, how fast can they enforce that?


    Thanks

    #2
    The answer to "what can we do?" is quite simple; don't buy it.

    Don't get involved in anything; it's a mess. It's not your issue. Let the current landlord go through the process of evicting them and if you're still interested once that is complete then go ahead. But bear in mind this could take a long time.

    Comment


      #3
      1 Your understanding is correct. Based on the tenant's behaviour, buying this property without vacant possession would be a huge mistake.

      2 Most lenders will want a visit to value, the days of a drive by valuation seem to have gone.

      3 The tenant can decline any access for any purpose which would require the landlord to get a court order to allow access. The landlord could try and obtain a court order to facilitate the valuers' access now.

      4 A court order. If the tenant absolutely declines all access, it's virtually impossible for a landlord to enter legally without one.

      This process shouldn't be at all frustrating, just walk away.
      Or as above, wait for the landlord to be able to sell the property unencumbered.

      For the avoidance of doubt, the break clause simply allows you to serve notice and end the tenancy which then allows you to serve s21 notice.
      It doesn't compel the tenant to leave.
      The court process can take many months and, if the seller has been negligent in any one of a dozen or so simple ways, may be challenged or even impossible.
      So your move in date is already impossible without the tenant's cooperation, which doesn't sound likely.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Originally posted by MBA1413 View Post
        .....

        Tenants:
        They have a 12 month agreement with a 6 month break in clause with 2 months notice. Tenancy started around mid February 2019 and will run until February 2020 however with the 6 month break in clause, we expect them to move out in August 2019. ................
        What matters is when they 1st moved in. And even if they co-operated and all paperwork was perfect August 2019 is more than optimistic: If they dig heels in (as they are entirely legally entitled to..) likely 7-8 months longer

        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          From a tenants' point of view, valuations are likely to be seen as a prelude to eviction, and they are loosing income or holiday entitlement by attending, but only the landlord is benefiting..

          Although they are not obliged to attend, they ate often concerned about damage, theft and privacy.

          Comment


            #6
            As said in the first post this is NOT your problem, if the landlord wants to sell then he needs to take the hit and evict, then sell. I would not entertain this property at all until the tenants were out of there, your could be taking on a real headache.

            Comment


              #7
              This has got red flags waving all over it IMO. The tenants won't be happy about the sale after only having been there 2 or 3 months. The landlord should have been honest and offered a 6 months not 12 months tenancy. Unless the tenancy agreement allows for valuations then I don't believe there is a case to gain access via the courts for that purpose.

              Comment


                #8
                "Section 11 Landlord and Tenant Act 1985 gives a landlord or a person representing them access to a property to [view its] condition and state of repair.
                That's essentially what a surveyor does, so I don't think the tenancy agreement has to have a specific clause about valuations.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                Comment


                  #9
                  Just walk away
                  I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

                  I do not answer questions through private messages which should be posted publicly on the forum.

                  Comment


                    #10
                    Walk away after telling current LL to activate the Break Clause so T becomes SPT 6 months ealier.

                    Comment


                      #11
                      Definitely don't buy it. If seller does not want to give vacant possession then there will be a myriad of problems including you not getting rent.

                      Why do you want to buy this one? Is it very cheap? If so all our warnings tell you why.



                      Freedom at the point of zero............

                      Comment


                        #12
                        Originally posted by jpkeates View Post
                        "Section 11 Landlord and Tenant Act 1985 gives a landlord or a person representing them access to a property to [view its] condition and state of repair.
                        That's essentially what a surveyor does, so I don't think the tenancy agreement has to have a specific clause about valuations.
                        Hm. I think that that is stretching it a bit. I think it is implicit that sub.section (6) is for estate management and can only be exercised at reasonable intervals. You may get away with one inspection, but not repeat inspections by buyers or their valuers.

                        Comment


                          #13
                          Gotta walk away from this buddy

                          Comment


                            #14
                            What country is this in?

                            Comment


                              #15
                              It really doesn't matter, as

                              Since we aim to move in ASAP (mid-late August which is exactly 6 months after the 12 month contract)
                              If the buyer wants to move in, rather than buy to let, there is absolutely no sense for it to be anything other than with vacant possession.

                              If obtaining possession isn't going to be problematic, then the seller should have no problem doing so before completion. If the seller can't do it for some reason, what makes the buyer think they can easily.
                              I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

                              I do not answer questions through private messages which should be posted publicly on the forum.

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X