Taking on a tennented flat in poor repair

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    Taking on a tennented flat in poor repair

    I am considering bidding on a tennented flat at auction. The figures all add up, but when I went to view it it turned out to be in a pretty poor state of repair (polystyrene ceiling tiles, old looking electrics, tiles off in the bathroom - you get the picture) frankly I am suprised they can let it for the rate they do. Now I could just buy it and carry on taking the money, but I'd be quite embarrassed to admit owning it and also worried about meeting my obligations as a landlord. Quite frankly it needs gutting and would necessitate the tennant moving out to do the job properly - but judging by what I saw in the flat I would guess it's some single guy who doesn't mind living in a hovel. The tennant has only been there 11 months so clearly doesn't mind it like that. Should I just leave it?

    #2
    Originally posted by Finwoodhill View Post
    I am considering bidding on a tennented flat at auction. The figures all add up, but when I went to view it it turned out to be in a pretty poor state of repair (polystyrene ceiling tiles, old looking electrics, tiles off in the bathroom - you get the picture) frankly I am suprised they can let it for the rate they do. Now I could just buy it and carry on taking the money, but I'd be quite embarrassed to admit owning it and also worried about meeting my obligations as a landlord. Quite frankly it needs gutting and would necessitate the tennant moving out to do the job properly - but judging by what I saw in the flat I would guess it's some single guy who doesn't mind living in a hovel. The tennant has only been there 11 months so clearly doesn't mind it like that. Should I just leave it?

    1st,you need to make sure the tenant has only lived there 11 months and Not longer..

    Who told you the tenant only been there 11 months,is there a tenancy agreement and so on
    Thunderbirds are go

    Comment


      #3
      If interested you need to request copies of the statutory safety checks to ensure all is in order. Then copies of consent to let if leasehold or leasehold agreement confirms allowance to sublet, tenancy agreement, inventory and schedule of rent payments to ensure tenant is not in arrears.

      It maybe difficult to obtain all of these being an auction property but worth requesting anyway.

      Comment


        #4
        Originally posted by Finwoodhill View Post
        The tennant has only been there 11 months so clearly doesn't mind it like that.
        How do you know that the tenant has only been there 11 months?

        It sounds like this could be a regulated tenancy. You need to find out how long the tenant has actually been living in the flat, and not just when the last tenancy agreement was signed.

        Comment


          #5
          You do things if the price is right.
          Allow tenants to protect their own deposits. I want free money when they do it wrong

          Comment


            #6
            There are copies of Assured Shorthold tenancy agreements dated 7/2/11 in the legals (there are actually 2 adjacent flats for sale) but it seems strange that they both have the same date, as the vendor has owned both properties since 2006 (when the leases were renewed to 125 yrs)and it's unlikely they would both have become vacant at the same time . Unfortunatly the solicitor dealing with this has gone off sick so there's a bit of a lack of info.

            Comment


              #7
              Then don't buy unless you have ALL the information as you could regret doing so later and that will be too late.
              The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

              Comment


                #8
                Originally posted by Finwoodhill View Post
                I am considering bidding on a tennented flat at auction. The figures all add up, but when I went to view it it turned out to be in a pretty poor state of repair
                But do the figures still add up having discovered the place needs a total refurb?

                There are copies of Assured Shorthold tenancy agreements dated 7/2/11 in the legals (there are actually 2 adjacent flats for sale) but it seems strange that they both have the same date, as the vendor has owned both properties since 2006 (when the leases were renewed to 125 yrs)and it's unlikely they would both have become vacant at the same time
                Dead right. So now you know the tenant has almost certainly been living there longer than the originally quoted 11 months.

                You absolutely need to be 100% sure when he moved in as if he's been there many years he could hold a tenancy which gives him far more rights (if you're considering buying a tenanted property hopefully you know all about this?), and this would massively reduce the market value of the property.

                Comment


                  #9
                  So LL has neglected his repairing obligations and decided to sell with tenant in place rather than carry out necessary maintenance. You as new landlord will inherit the existing tenancy. Tenant then starts harrassing you for repairs, writes to EHO and demands an inspection of his grotty living conditions, and you are slapped with a repair order from them. Then you have to pay to re-house the tenant whilst the work is carried out.

                  A long stick used for pushing canal boats comes to mind ...

                  Also, a tenancy agreement signed 11 months ago may not be the date tenant moved in, as many landlords get tenants to resign every 12 months - that could be just the latest tenancy agreement.

                  The whole reason tenanted properties go to auction is that they are very unlikley to sell on the open market, due to the pitfalls and problems that come with them.

                  Comment


                    #10
                    Originally posted by Finwoodhill View Post
                    There are copies of Assured Shorthold tenancy agreements dated 7/2/11 in the legals (there are actually 2 adjacent flats for sale) but it seems strange that they both have the same date, as the vendor has owned both properties since 2006 (when the leases were renewed to 125 yrs)and it's unlikely they would both have become vacant at the same time . Unfortunatly the solicitor dealing with this has gone off sick so there's a bit of a lack of info.
                    One thing you can check

                    Place the full postcode into this link https://ebusiness.voa.gov.uk/err/

                    of the flat you want to buy and just Click find.

                    Lets us know what you find if anything ? dont post any person details
                    Thunderbirds are go

                    Comment


                      #11
                      The Electronic Rent Register link does not seem to be working. Anyway thanks for your help everyone - it's just too risky.

                      ps: Just in case anyone was interested in the background to this - the flats have a rough value of 75K and 80K (only Zoopla figs)and are being sold together as one lot (two title deeds)Rental is £450 per month each, guide price (low to entice lots of interest) is 90-100K - Sounds too good to be true (and probably is!)

                      Comment


                        #12
                        What is the current tenant actually paying?
                        Allow tenants to protect their own deposits. I want free money when they do it wrong

                        Comment

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