Buying a property with tenants

368100

Hi,

Can anyone tell me what the current process is for ceasing a rental agreement.

I'm considering buying a property to live in myself but there are tenants in situ.

What would be my obligations?

riclad

You have to give the tenants notice to leave, the time is at least a month,
but it depends on how long they were living there.

qoute ; from citizens info centre ie

Rent reviews will be carried out in accordance with the tenancy agreement (if there is one) or else no more than once a year
Most tenants of AHBs will get security of tenure after 6 months in the tenancy. Security of tenure (also known as Part 4 rights) means that you can stay in the property for a number of years. However, this does not apply if you are living in transitional accommodation and the tenancy is for 18 months or less.
The landlord’s right to terminate a Part 4 tenancy because they, or a family member needs to live in the property, does not apply to AHB tenancies

You are entitled to a certain amount of notice of the termination of your tenancy
You are entitled to at least 90 days’ notice if your landlord wants to review the rent, and there are rules about how often they can do this
https://www.citizensinformation.ie/en/housing/renting_a_home/if_your_landlord_wants_you_to_leave.html

All tenants must be given a rent book, recording rent payments ,etc

You can get advice from a flac centre ,free legal advice centre .
Or just pay a solicitor to take care of this .
All tenants must be registered with the prtb board ,
You must be careful to do everything right in accordance with the law if you decide to give the tenants notice to leave ,
otherwise they can take a case against you to the rtb board


https://onestopshop.rtb.ie/legislation-change

duffman13

368100 wrote: »

Hi,

Can anyone tell me what the current process is for ceasing a rental agreement.

I'm considering buying a property to live in myself but there are tenants in situ.

What would be my obligations?

Have you got cash because a lender may not allow you to purchase with tenants in situ.

368100

duffman13 wrote: »

Have you got cash because a lender may not allow you to purchase with tenants in situ.

No....it would be mortgaged. How would they know that tenants in situ unless I told them? Estate agent listing doesnt mention it

ELM327

It's one of the conditions of the drawdown. Your solicitor would probably tell the bank

riclad

Most banks require a survey as part of the mortgage process,.
In practice a surveyor walks around the property,
looks around to make sure theres no major fault,s ,
that would make the house, worth less than the loan value.
This takes maybe 5-10 minutes,
its not a structural survey.
This person is employed by the bank .
Will the tenants give acess to a surveyor ?
have the tenants a good relationship with the landlord .
Are the tenants working full time, eg probably be gone out if a surveyor call,s .
Even a landlord has to give notice to a tenant , to enter the property,
eg i wish to call over next week on tuesday

You will need to employ a solicitor in order to buy the house, you may as well pay him to help you to give notice to the tenant,
in a way that is legal and proper.
i do not think its, impossible to get a loan to buy a house with a tenant living there .

The_Conductor

riclad wrote: »

i do not think its, impossible to get a loan to buy a house with a tenant living there .

In Ireland a lender will not give an owner occupier a mortgage for a property unless they have vacant possession of the property. If a tenant were to decide they couldn't find alternate accommodation (which is entirely plausible)- it could potentially take anything up to 2 years to get vacant possession of the unit.

If you are insistent on buying this particular property- make sure vacant possession is a condition of the sale- it is the seller's duty to you- unless you want to end up as a landlord to a tenant..........

punisher5112

Don't ever buy with Tennant's on site.

Unless it's a business property.

dennyk

Yep, only situation where you should even consider buying a property with tenants in situ is as a buy-to-let investment, and even then, only if you have done a full and proper vetting of the tenants in question yourself (and don't rely on the current owner for information; if they want to be rid of the place, they'll surely tell you they're the best tenants ever even if they've set the place on fire several times and haven't paid a dime in rent for a year).

OP, there's no point in even considering it in your case, as you will never be allowed to draw down your mortgage in that situation. If you're planning to occupy the place and the owner doesn't have vacant possession, it's usually not even worth looking at, and definitely not worth putting in a bid or otherwise starting the buying process at all, as it could take well over a year to remove obstinate tenants even if the landlord does everything by the book and you'll just be stuck in limbo forever.

sunnysoutheast

riclad wrote: »

Most banks require a survey as part of the mortgage process,.
In practice a surveyor walks around the property,
looks around to make sure theres no major fault,s ,
that would make the house, worth less than the loan value.
This takes maybe 5-10 minutes,
its not a structural survey.
This person is employed by the bank .
Will the tenants give acess to a surveyor ?
have the tenants a good relationship with the landlord .
Are the tenants working full time, eg probably be gone out if a surveyor call,s .
Even a landlord has to give notice to a tenant , to enter the property,
eg i wish to call over next week on tuesday

You will need to employ a solicitor in order to buy the house, you may as well pay him to help you to give notice to the tenant,
in a way that is legal and proper.
i do not think its, impossible to get a loan to buy a house with a tenant living there .

As others have said, it will be a condition of the mortgage loan that there is vacant possession which the conveyancing solicitor will need to confirm before drawing down funds. Certainly for a residential mortgage which is I believe the OP's situation?

tradingwizz

I presume the part-4 tenacy stays in place (from start of original tenancy)? In other words the part-4 is not reset once there is a new landlord?

dennyk

tradingwizz wrote: »

I presume the part-4 tenacy stays in place (from start of original tenancy)? In other words the part-4 is not reset once there is a new landlord?

Correct; the existing Part 4 tenancy survives a change of property ownership.

368100

OP here, thanks for all the replies.

Yes it would be my intention to live in it.

Another question, if there is a spare room in it would I be within my rights to move in along with the tenants subject to giving them notice etc?

Spanish Eyes

You are not a cash buyer, so therefore your mortgage will be subject to vacant possession, as others have said.

Rows Grower

368100 wrote: »

OP here, thanks for all the replies.

Yes it would be my intention to live in it.

Another question, if there is a spare room in it would I be within my rights to move in along with the tenants subject to giving them notice etc?

Heh, heh.

Talk about thinking outside the box.

Spanish Eyes

Amazes me sometimes, that the biggest financial commitment people will enter into is buying a home (subject to a mortgage), and not realise the rules around drawdown, the primary one of which is vacant possession.

OP, get a bit of advice please, you seem to think it will all be fine. Not so, you cannot buy with a mortgage with tenants in place. End of story.

368100

368100 wrote: »

OP here, thanks for all the replies.

Yes it would be my intention to live in it.

Another question, if there is a spare room in it would I be within my rights to move in along with the tenants subject to giving them notice etc?

What are the terms of their lease?
Are they renting the whole house - then no.
Individuals renting specific rooms - maybe.