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Buy property with tenant in situ

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  • 22-10-2017 5:37pm
    #1
    alwald
    Registered Users Posts: 1,289 ✭✭✭


    Hi all, I am interested in a property that is currently on sale with a tenant in situ, I will need 20K mortgage only (based on the current price advertised) and I can pay it easily with my salary regardless of any complications getting the tenant out - I plan to use this property for myself and I can wait 1 year or more if necessary to evict the tenant.
    Will the bank give me a 20k to 30K mortgage in this situation? is it a bad idea altogether as in should I just run from such property? any other recommendation? thanks!!


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    #2
    VonBeanie
    Registered Users Posts: 101 ✭✭VonBeanie


    I'm not saying its right, but I wouldn't expect a bank to give a mortgage for any amount without vacant possession. For 20k, it may be possible to get an unsecured personal loan. An expensive option, but probably more achievable.


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    #3
    LirW
    Registered Users Posts: 4,825 ✭✭✭LirW


    A bank won't give you a mortgage under 40-50k and even then banks are quite hesitant giving out such small mortgages because they earn little from it.
    But you definitely couldn't secure a mortgage against a property that's occupied.

    Unsecured loan is the way to go.


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    #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    alwald wrote: »
    is it a bad idea altogether as in should I just run from such property? any other recommendation? thanks!!

    Yes, its a bad idea.
    Insist on vacant possession before closing the sale- its nuts to even consider buying a property you intend to use yourself- if it has a sitting tenant- if the sitting tenant decided to play the system- it might take you a 2 years + to get vacant possession- all the while they may not be paying rent- but regardless, you are legally obliged to maintain the property for them.........

    Its vacant possession- or just walk, its not the hassle.


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    #5
    alwald
    Registered Users Posts: 1,289 ✭✭✭alwald


    Wise words...I will see the property and if I like it I will ask for it to be vacant as suggested here...otherwise I won't put an offer. Thank you all for the help!


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    #6
    garhjw
    Closed Accounts Posts: 1,424 ✭✭✭garhjw


    I can't see a bank granting a mortgage, no matter how small, on a property without vacant possession - too much risk.

    As a buyer, I wouldn't close without vacant possession - too much risk.

    You could have a very good tenant or it could turn into a nightmare. With the current RTB process for hearings taking so long and then enforcement of adjudications, it could take a long time to remove a difficult tenant.


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    #7
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    A lot depends on the lease. In some cases there is no lease and it is very difficult to even begin an eviction process because there is information such as the start date of the letting and even the amount of the rent missing. A serious discount on the purchase price would be necessary to justify taking a chance.


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