Buying a property with tenants at auction

So i am looking at buying a property that i want to live in. However it comes with tenants, who look might be resistant to leave. They have been in the property since 2013 and the house is being auctioned as is and with benefit of tenants.

The tenants have said to other people they were told they can say and won't move. They are getting extremely low rent, but as a purchaser i am not looking for rent, i want to move in.

What is the best course of action if i buy this house as i am eager to get it

Paulw

Don't buy. They are sitting tenants and even if you serve proper notice, it could be a few months before they must leave. Meanwhile, you still need to pay the mortgage.

enricoh

Can you not get them out easy enough once you are the owner and want to move in? A mate of mine couldn't afford the mortgage following splitting with the missus, got a dud tenant in and got him out by moving back in.
They've some neck saying they won't move out, if they're that fond of the place they should bid on it. It might get rid of some of your competition at the auction though! !

Paulw

enricoh wrote: »

Can you not get them out easy enough once you are the owner and want to move in?

Once you own, you must still serve the proper notice. If they are there 3 years, but less than 4, then the notice is 12 weeks. So, at best, you must serve them 12 weeks notice.

If they say they won't leave, then you must begin the legal eviction route, which may take more time.

It is a pain, but that is the process.

HeidiHeidi

If you're going to get a mortgage, the bank usually insists on vacant possession.

K.Flyer

You could be walking yourself into serious protracted problems. Unless you are prepared to become a temporary landlord until you eventually get them out, Walk Away from the deal.

davo10

Op, all vendors/EAs/banks know that vacant possession is for more desirable when selling a property. If they could have easily gotten the tenants out before the property went for auction, they would have. You could be in for months of problems and a large financial hit if the tenants over hold and stop paying rent.

Phone the auctioneers and ask them why it isn't being brought to market without a sitting tenant. Familiarise yourself with the rules of bidding at an auction, you must have the funds to buy on the day and once your bid is accepted, the property is yours warts and all.

Marcusm

Pig in a poke; unless you don't need finance and are willing to wait for up to 18 months, you are not a suitable buyer for the property. Any offer of finance you have will be predicated on vacant possession whereas it sounds as if this is not the basis of the sale. If the hammer falls to you and vacant possession is not available and you cannot complete the sale, they can reauction the property and you are liable for any shortfall - it is not limited to your 10% deposit. If the auction room is hot then the loss could be significant.

Claw Hammer

If it was easy to get those tenants out they would have been gone before the sale.

DubCount

The whole process may include:
1) Proper notice of termination
2) Case with PRTB for overholding (when they dont move out after the notice period)
3) An appeal with the PRTB when they challange the original PRTB decision
4) Court hearing to implement the PRTB rulings
5) Getting Bailiffs to implement the court order.

Allow 2 years between getting title to the property and getting access to it. Allow for the costs for lawyers etc, the cost of paying a mortgage with no income while the process unfolds and there is a possibility that they may cause significant damage to the property before leaving.

If you dont follow the process, the PRTB can fine you up to €20,000 for an illegal eviction.

Don't convince yourself that natural justice will ensure a happy outcome. The system stinks but it is still the system and it wont change because of concepts of "right" and "wrong"