PDA

View Full Version : Selling house



magic.genie
20-05-2007, 10:26 AM
Unfortunately I have to sell one of my properties, the tenants signed an AST a couple of months ago.

Does anyone have a second to clarify, where I stand, what I can do/not do, the procedure etc It's being 'managed' by an agent.

Has anyone been in this position/have any stories/experiences to share?
hope to hear from you, kind regards
Alex

jeffrey
20-05-2007, 12:03 PM
Unfortunately I have to sell one of my properties, the tenants signed an AST a couple of months ago.

Does anyone have a second to clarify, where I stand, what I can do/not do, the procedure etc It's being 'managed' by an agent.

Has anyone been in this position/have any stories/experiences to share?
hope to hear from you, kind regards
Alex

A. Your sale proceeds as normal, with Contract stating that you sell subject to existing tenancy. Whar clarification are you seeking, please?
B. On completion, sols. will adjust p/price so that you receive all rent (inc. any arrears) up to/inc. that precise day.
C. Your sols. hand to P's sols. a Letter of Authority in favour of P whose sols. send it (with Statutory Notices under s.3 of LTA 1985 and s.48 of LTA 1987) to the tenant.

magic.genie
20-05-2007, 12:19 PM
Ah, thanks Jeffrey.
I was thinking i'd have to ask the tenants to leave somehow.
So, I sell with tenants, are you saying is my only option?

jeffrey
20-05-2007, 12:22 PM
Ah, thanks Jeffrey.
I was thinking i'd have to ask the tenants to leave somehow.
So, I sell with tenants, are you saying is my only option?

Yes, unless:
a. they want to go early (voluntarily); or
b. you sell to them, rather than on open market. Saves on Estate Agents' fees!

J4L
20-05-2007, 14:58 PM
Yes, unless:
a. they want to go early (voluntarily); or
b. you sell to them, rather than on open market. Saves on Estate Agents' fees!

Can this person not give notice to tenant and complete the house sale when they've left??
What I mean is, if the property sells whilst the tenant is still within the notice period, agree that completion takes place AFTER they have gone?

jeffrey
20-05-2007, 16:34 PM
Can this person not give notice to tenant and complete the house sale when they've left??
What I mean is, if the property sells whilst the tenant is still within the notice period, agree that completion takes place AFTER they have gone?

Yes. V would presumably exchange contracts but with a deferred completion date (eg "on the earlier of:
i. four weeks from exchange of contracts; or
ii. two weeks from the date on which the vendor serves on the purchaser written notice that the property is vacant;
but - if the written notice is not served within six months of exchange of contracts - the purchaser may serve on the vendor written notice of rescission and forthwith recover all money paid to the vendor by way of deposit").
The problem is whether P would agree.

J4L
20-05-2007, 16:41 PM
Yes. V would presumably exchange contracts but with a deferred completion date (eg "on the earlier of:
i. four weeks from exchange of contracts; or
ii. two weeks from the date on which the vendor serves on the purchaser written notice that the property is vacant;
but - if the written notice is not served within six months of exchange of contracts - the purchaser may serve on the vendor written notice of rescission and forthwith recover all money paid to the vendor by way of deposit").
The problem is whether P would agree.

If notice was given NOW to tenants to be enforced at end of said initial AST then the V & P could agree not to take anything any further until that date though couldn't they? This of course if the P doesn't wish to have the tenants in the property.
I'm also guessing that T are ok and don't decide to squat!! This could put a spanner in the works!

pippay
20-05-2007, 20:06 PM
No-one has said whether its a 6 month or 12 month AST .. if it's the latter there is absolutely no point in trying to sell with vacant posession now !!!

magic.genie
21-05-2007, 15:13 PM
The tenants signed a couple of months ago, my agent has written:
< The earliest we can legally ask the current tenants to vacate is 30th September 2007. >
Tricky isn't it. I need to sell, but obviously i'd like the tenants to stay till sold.

jeffrey
21-05-2007, 15:14 PM
The tenants signed a couple of months ago, my agent has written:
< The earliest we can legally ask the current tenants to vacate is 30th September 2007. >
Tricky isn't it. I need to sell, but obviously i'd like the tenants to stay till sold.

So sell it subject to existing tenancy, with them still there.

Nora Kay
21-05-2007, 22:23 PM
Alex,
I have been selling several BTL properties over the past couple of years, and it usually goes like this:-
You decide to sell, so out of courtesy you tell the tenants what the situation is before the for sale sign goes up. You obviously would like to keep the tenants in the property paying rent right up the the completion of the sale, but just the mention of a sale seems to get the tenants worried about not finding anywhere else suitable when the time comes for them to go, so they start looking around for a new place now. If the property is in multi-occupation, they disappear one by one.
Where the initial 6 months AST is still running, as sales are slow at the moment, you will be surprised at how quickly the months go by without a sale. In your case there are only 4 months left to run, so it shouldn't be a problem. You can give the tenants notice now requiring possession at the end of the AST, but also assure them that they do not have to leave then if no buyer has been found.
However, there can be problems if you keep tenants to the last moment. The tenants do not have to give access to the estate agent to show a potential purchaser around if they don't want to. If they do give access, the property may not be left in as tidy or clean condition as you would wish, to impress viewers. I have experienced both of these scenarios, and really think that it is best to have the property vacant for viewngs, if you can afford to do so.
The final difficulty, which thankfully I haven't yet experienced, is for the tenant to stay on till completion, then refuse to vacate. I assume that the purchaser's solicitor will put a clause into the contract to cover his client against such a possibility.
The situation of a tenant being passed to the purchaser with the sale of the house is a possibility, but I haven't had anyone wanting to do that.
Hope this has been of some help.
Nora





Sales are slow at the moment and it could well take four months to find a buyer, by which time their 6 months AST has come to an end.

J4L
22-05-2007, 06:11 AM
After our experience yesterday i'd say that you are probably better off giving notice now and start to take viewings once the tenant has gone.

We went to look at a property last week with a view to letting it out, really liked it, beautifully decorated and really well looked after. We made an offer and have agreed a sale. (No tenant in this house)
Yesterday, however, we viewed another house in the same street. There was only 2k difference in the asking price but OMG when we went in and I wandered upstairs I was nearly ill. This has a tenant in already and I've never seen such a mess. I wouldn't let my dogs live there.
Suffice to say we got out as soon as . . . . . BEHIND the estate agent might I add. haha

I think the owner has made a huge mistake by putting it on the market before this tenant has left. Personally if I were the landlord I'd have been checking out the person, THEN doing a bit of decorating, cleaning and tidying and THEN allow potential buyers to view.

The estate agent said 'you probably won't be making an offer then' to which I replied 'yeh i'll pay 25k less than the asking price'

Obviously this Landlord doesn't manage his property well and has said that he'll only go 2k lower and the tenant will stay if we want them to but really I couldn't allow someone to live like that in one of my houses.
I can't imagine him selling this house anytime soon, especially in that condition.

Long drawn out story I know but my point is this, if he lets the tenant go he'll have a much better chance of selling nearer his asking price. This way he's already 'losing' potential buyers by showing them around now. So if someone is 'having' to sell a property, get it right before getting viewings.
This guy is going to have an empty house for a long long time but he is still going to have to pay his mortgage.

Unless of course you already have good tenants and you know the state of the house.