I recently agreed to buy a tenanted property. I've since discovered some facts about the tenants, who have been there since 2010:
1/ 75% of the rent is housing benefit, paid direct to the letting agent, balance payable by the tenant.
2/ There are significant arrears on the rent account caused by housing benefit being witheld for a period due to a change in circumstances. The housing benefit has now been reinstated.
3/ An eviction order has been served on the tenants.
4/ Tenants, keen to stay in the property, agreed to a sizeable repayment schedule with the landlord. This has been adhered to for 2 months. Landlord agreed not to enforce the order providing the repayment schedule was met.
I want to proceed with the purchase whether the order is served or not.
My question though: If contracts are exchanged and the tenants have not been evicted, there will still be arrears on the rent account. Would I be right in thinking that because the previous landlord now has no interest in the property the eviction order would naturally be nullified, and the arrears at exchange would become a matter that the previous landlord would need to persue in the normal way i.e. small claims? And from day one of me being the landlord, arrears are nil?
Thanks for any replies.