Anthony Posted August 17, 2007 Report Share Posted August 17, 2007 Hi all Have been offered a property on which the numbers add up nicely. Only problem is that there are tenants in situ and there is no tenancy agreement in place. I have spoken with the tenants and they have stated that they would love to remain in the property (even though the estate agent said that they were "moving out anyway") They have been tenants there for a number of years and have stated that they are happy to sign a proper AST agreement. The vendor is one of those slack landlords, never done a gas check, never does repairs, etc and has never had a tenancy agreement. Why does this type always get the good tenants?! My problem is that if I buy this property with the tenants in situ and with no AST currently in place am I putting myself at a bit of a risk? What is to stop them refusing to sign an AST and indeed paying me at all when I complete on the property? They seem a nice couple and I do not believe that this is going to happen but are there any steps I can take to prevent it? Ideally I want them to sign the AST prior to completion but as I will not own the property how can I? Is it possible to get a proper AST in place now and then carry that over (esp. as no mortgage will be on the property)? Any advice very welcome. Thanks in advance, Anthony Link to comment Share on other sites More sharing options...
stevetodd Posted August 17, 2007 Report Share Posted August 17, 2007 I think you will find that your mortgage lender would not lend otherwise, assuming that its not a cash purchase of course. Sorry just noticed you said it was cash. You could suggest that the existing landlords do this, but you have an advantage in buying it as it is, beacuse if the vendors do this you might suddenly get some competition from someone with a buy to let mortgage. Link to comment Share on other sites More sharing options...
Anthony Posted August 17, 2007 Author Report Share Posted August 17, 2007 thanks stodd I can see your point, however the thought of taking on a property and tenant with no written agreement is a tad worrying! Anthony Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 17, 2007 Report Share Posted August 17, 2007 do not buy prop as is - as you basically have sitting tenants ...... make a signed ast at reasonable rent a condition of purchase - ast details to include transfer of old LL to new LL which i think you will find is pretty standard ........OR insist on vacant possession ..... You could write an ast to begin on the day of completion but would recommmend the above as it iis fairly common - i have bought several houses with t in situ and taken over lease ( although i normally try to put rent up asap and get them on my ast as it is more comprehensive and gives me greater control... Simon Link to comment Share on other sites More sharing options...
Melboy Posted August 18, 2007 Report Share Posted August 18, 2007 Not mentioned is how much the property is being rented out for. The Landlord is not a "slack Landlord" for not having a gas certificate in place he is actually breaking the law and faces a fine of up to £5000 for not carrying out the safety check. I see the listings of Landlords who have faced or are facing prosecution for not adhering to Gas safety regulations for Tenants and believe me there are quite a few stupid enough not to have the gas certificate in place. The latest Landlord was jailed for 5 years for killing a Tenant from Carbon Monoxide poisening though installing a s/hand boiler with incorrect fluing himself! I would not purchase any property with a sitting Tenant unless there was a watertight tenancy agreement in place. Mel. Link to comment Share on other sites More sharing options...
russ295 Posted August 18, 2007 Report Share Posted August 18, 2007 i did buy a flat a few years ago with a tenant on a ast at £10 a week, he hadnt paid a penny for over a year, for the price i had to buy it regardless, long story. from the outset i told him i was planning on moving in and living there myself. told him i had purchased it 2 days before i had and he moved out without hassle, changed the locks and never seen him again! my solicitor was very concerned over the purchase from the start! quite lucky when i look back. russ Link to comment Share on other sites More sharing options...
Anthony Posted August 18, 2007 Author Report Share Posted August 18, 2007 Thanks all for your replies. I think I will get the AST set up as a condition of sale and have it transfer to me on completion if that is possible. Seems the best option. Yes I guess breaking the law does go beyond "slack"! It's just a term I tend to use! Actually it irks me greatly to be giving this w*nker any money at all, but there you go. I am at least happy that the tenants will gain a decent landlord at last and will not be dying in bed in my property. Thanks again, Anthony Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 18, 2007 Report Share Posted August 18, 2007 Anthony In light of the situation i think it would be highy advisable to also make a current gas safety cert a condition of sale ( cos you may find you are shelling out a further £2000 if present boiler and central heating is condemned ...............................) At the very least get a corgi man in to get an opinion - i think you will also find that if a corgi guy looks at it "officially" and it is unsafe he will condemn it on the spot and shut it down immediately ----which clearly is going to affect the price you pay and the tenants attitude .......you may find the the current owner changes his attitude somewhat when he wakes up to the serious nature of this " oversight " ........ This kinda gives both you and the T a much stronger hand in the game - assuming LL doesn't want a potentially very hefty fine............... Simon Russ -nice one - the power of white lies and physcology!!!!!!!!!!!!! MEL.........................................????? Link to comment Share on other sites More sharing options...
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