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  • Buy-to-Let

    Tenanted house from auction - HELP!

    Ive bought a house at auction I plan to renarvate and flip.

    House is tenanted for last 8 years with same tenant on housing benefit .

    Ive been told from the estate agent I need to issue a S21 to start the 2 month process, Ive spoke to the tenant who wants me to issue the S21 as he thinks he will get a council house straight away even though he is a single 50 year old man in Liverpool. Im sure this isn't going to happen and the council will tell him to stay in the property until evicted.

    Looking at the court application form in case it goes that far, Ive noticed Ive got to give a rent guide to him , a EPC and Gas safe which I haven't because Ive only just bought it also deposit guarantee.

    Does this mean I now have to issue a new agreement with all the info and then wait 6 months before S21 who can I contact to help me through this as I have never had to issue S21 before I could figure it out if it was my own tenant with my own agreement but its all in past Landlord name and Venmores where the estate agent don't want to know.

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    Hi Chris,

    If I were in your shoes, I would offer the tenant a financial incentive to leave the property.  That would be the quickest and least hassle way to solve this problem.  The sooner you can get on with the renovation, the sooner you can get the property back on the market.

    Paying the tenant to leave will actually save you money overall, so come to an arrangement that works for both of you, and then get on with your project.

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    If we where to agree on a price to move out how would I document that so he dosnt take the money and come back the next day and say Ive changed the locks while hes out and would the document stand up if he took it to court later down the line?


    Do I still issue a S21

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    Call me naive and simple, but no wonder landlords often get a bad press. Unfortunately you seem to have, in what seems like a  rush to turn a possibly dubious and unearned profit, ended up buying a property with a tenant who, one way or another, appears to have been paying his rent for eight years and who seems happy to stay. How selfish and unreasonable of him. I am not for one minute lumping you in with them, but there is certainly a minority element on this site who are clearly greedy beyond avarice and see the road to great wealth as one littered with ‘inconvenient’ tenants who sometimes get in their way. I suspect there is a far greater element of honest taxpayers who work / have worked hard in decent jobs with perhaps buy to let investments (sometimes “accidental”) as an aside or ‘bonus’ in which they are quite happy to treat people, including tenants, fairly and equably. Must admit I sometimes get sick to death with some questions posed by persons “at the start of their journey”  who, perhaps naively, think buy to let is a one way selfish road to riches, and beggar anyone who gets in the way.
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    Philip, I do think your comments are unfair and off the mark.

    It's not the fault of the buyer the tenants situation, you should aim your comments at the seller.

    How do you know the tenant is the perfect tenant, who pays their rent on time and looks after the property. (My thinking would be this is not the case if the buyer has enough margin to FLIP.

    Regardless, different investors have different strategies which must be respected.

    Everyone starts their own journey and Chris may well renovate a property in need of TLC and provide a FTB with their perfect home, and EARN his due payment. (God-forbid)

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    I see a middle ground, a landlord has chosen to off load a tenanted property via auction, the purchaser bought it in full knowledge of the tenant and intends to gain possession and renovate, all perfectly legal so long as its done properly. 

    Without doubt there appears to be an air of undue haste to resolve the matter which to many of the anti landlord ilk will be fuel to their agenda and is a perfect justification (in their view ) for the end of section 21, a position in this example which is not totally unreasonable and one where the purchaser is going to get little sympathy in the wider world.

    If i’d been looking to pursue a similar venture , budgeting for an amicable end to the tenancy ( ie, buy the tenant out) would have been in my calculations and if that didn’t work then doing it properly is the only alternative left.
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    Phil.

    I do like these posts to air views, and usually learn a bit.

    I do have to disagree to some points, if you don't mind.

    The air of undue haste - I disagree, the buyer has purchased the property. He may have a bridge loan. So literally time is money. Plus he would be doing the tenant no favours at all if he wasn't open and honest from D1.

    The anti-landlord ilke. This is a business not a favouritism game. I am certainly not cut throat and like the majority of landlords have been burnt by being too kind.

    To be fair to Chris, he has asked the question to the best property discussion web site and is getting some great feedback.

    I certainly wouldn't be buying the tenant out. Not sure how that goes down in court?

    I understand your position towards tenants and I do actually agree the use of S21, because the tenant reported a repair is way out of order. But this scenario isn't like that.


    . I can see where you are coming from when landlords issue a s21 to a tenancy

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    All fair enough , as you say much is a question of personal points of view. However having additional costs due to a possible bridgeing loan would for me mean making sure i know exactly what i’m buying and how i’m going to gain possession.

    Without doubt its a commercial proposition but in the current anti landlord climate any of the anti landlord crowd will seize on the OP as an example of ever more regulation being required, despite as has been pointed out this is predominantly a development proposition, however for the antis the developer is the  landlord as well until possession is gained.
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    Hi Philip A,

    The original poster is not a landlord, he's a property developer, so he is looking at it through a different commercial lens.

    Please, if you ever see anything where there is negative commentary about tenants, then press the "report" button and the moderator will take the appropriate action.

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    The poster has bought a house at auction and is now simply asking how he can legally and according to the rules sell the house he now owns. What’s wrong with that ? 

    Every Landlord on here may at some point for a variety of reasons want to sell a house they own or when they die their children may want to do the same with the house they have inherited .

    You seem to be saying that as long as a tenant is a good tenant and paying the rent on time etc then no Landlord should ever be able to issue a S21 to a tenant to sell the house or at least that it’s perfectly ok to kick a tenant out with a S21 if you have been a good landlord but not if you are a property speculator !
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    I agree with you here Philip.

    Why would someone buy a house that is tenanted when they could buy one with vacant possession?

    All because of the money they can make from renovating it/flipping it.

    I hope the tenant gets a very pretty penny for the incovenience and worry they will be put through!
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