New landlord, tenant in situ, no deposit held?

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

    New landlord, tenant in situ, no deposit held?

    I am due to complete on a flat purchase with a tenant in situ. A week before completion, I found out that a new AST had been drawn up by a property services company. I was planning to get an agent to manage the flat for me upon completion and draw up a contract between myself and tenant.. I have also learnt that a/ no deposit is held by this company and b/ the owner of flat is a co director of said company.
    I am purchasing the freehold. The contract is an AST fixed term for 12 mths. The company has set a rent price a lot lower than I was planning.
    Can anyone advise me what to do please? the completion date is on hold at moment but its been dragging on for over 3mths. I am a cash buyer.
    This is my first time as a landlord, advise would be appreciated. My solicitor doesn't seem to know what to do!
    Thanks

    #2
    welcome to LLz ..

    Could you answer theses questions for new posters, Thank you ...

    http://www.landlordzone.co.uk/forums...ll-new-posters
    Thunderbirds are go

    Comment


      #3
      1/ England
      2/ AST sole tenant
      3/ 12/8/15
      4/ Unsure
      5/Payable every calandar month
      6/No deposit to be held, one of my big concerns
      7/ No notices served as yet
      8/ No, the landlord lives somewhere else.
      I believe tenant been in for 1 yr. I suspect there was no 'official' AST prior to the new one being drawn up. Think it was a private agreement.
      Thanks

      Comment


        #4
        The biggest risk of buying a property with a tenant in situ is that they are not really on an AST.

        If the "tenant" is actually a company (for example) the agreement isn't an AST.
        If the tenant had been living there for years and years, it might not be an AST.

        I don't really understand what the actual questions is.
        When Ms Violet says "I found out that a new AST had been drawn up by a property services company" what does that actually mean?
        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


          #5
          Thanks for your reply, I'll try to explain better.
          There is an AST that was drawn up on 12th Aug 15. During the purchase process I had asked for a copy of the tenants current contract. About 2 weeks later I was sent a copy of the AST, recently drawn up. The property service business had been dealing with the ground rent, as they do for many properties. They are not an estate agent. The flat is being sold in name of owner, the contract drawn up in name of the property service. Then discovered owner is director of said company.
          My question really is, can the AST be transferred into my name, and should I insist on a deposit? How do I raise the rent? I am worried about completing with all these unanswered questions.
          Not sure if that's clearer or not, thanks anyway.

          Comment


            #6
            Before going any further ask the tenant when they 1st moved in.
            You could be about to make a HUGE mistake.

            Is the price "attractive"? If so, worry even more.
            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


              #7
              I didn't think I would be able to talk to tenant, as not yet the landlord? I believe she has been there 1 year. The price is about right for 1 bedroom flat. I am worried this may be a big mistake!

              Comment


                #8
                If in doubt, walk out.
                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
                  If the seller or agent doesn't want you to talk to tenant worry & walk away.

                  Ask the tenant or get other evidence (eg built 2002..)
                  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


                    #10
                    Walk away from purchase. Get some LL training (NLA/RLA) A mistake at this stage without proper legal advice could be very expensive for you.
                    The private rental sector is not 'user friendly'for the inexperienced
                    Lack of deposit is not nec a problem if T has property owning Guarantor

                    Comment

                    Latest Activity

                    Collapse

                    Working...
                    X