What Do I Need To Know and Do When I Buy a Tenanted Property from Alliance?
Last updated: 2.52pm, Wednesday 17th March 2021
About 25% of the properties we sell have a sitting tenant. This blog lets you know what we do to ensure there is no issues, hassles or suprises for you.
Buying a Tenanted Property from Alliance: What Do I Need to Know?
Approximately 25% of the off market properties we sell have a tenant already in place.
On this blog we look at the extra diligence we do as part of what we do in selling a property with a tenant already in place and how that helps you.
Is buying a property with a tenant in place any different to one without?
We make it easy for you.
However, we have to do some extra and important diligence as well as the normal processes we do.
As with any off market property that Alliance Property Group sells, we take great care and a lot of diligence to ensure all details of the property is correct and very accurate so there is never any surprises for you, financially or otherwise.
That is critical and very important.
That was highlighted in detail on our news blog Why We Only Get and Sell The Best Off Market Properties For You (click link to open and read)
What do Alliance do before the Deal Proposal is finalised and sent out?
Apart from all the deep and accurate diligence we do on the property to ensure it is:
- the right property
- right price
- right area
- right demand for rent and the right demand for resale
- the financial information is accurate so never any surprises for you, including:
- purchase cost
- monthly rental amount
- tenants details are checked and confirmed (purchases with sitting tenant)
- tenants lease is checked (purchases with sitting tenant)
- tenants rental payment record is seen (purchases with sitting tenant)
What happens during the legal/buying process?
Once the property has been secured by the investor, we introduce you to the solicitor to start the legal buying process.
The solicitor is aware that there is a sitting tenant and we confirm what information is to be requested.
That ensures there is no misunderstanding of having the right information in place is in the buying process.
What information is requested by the solicitor to the sellers solicitor?
Even although we have seen the information, we will advise the seller, who we are direct to, to be prepared to pass the relevant information to their solicitor so there is no delays.
That information asked for, but not always applicable or in place by the selling landlord, can include:
- A copy of the current lease
- Details of the landlord registration (to prove it has been complied with previously)
- Any notices that have been served by the tenant, local authority, or landlord
- A full inventory of items within the property
- All compliance documents (including EPC, Gas Safety certificate, PAT test, Legionnaires certificates and any appropriate warranties on items)
- Details of the deposit scheme (to ensure the deposit has been registered)
- An up-to-date rent statement
What if some of that information is not available?
Sometimes the selling landlord has not been very good at keeping paperwork or compliance up to date.
The majority of landlords like that are why they have or are selling their property off market and below market value to us/you.
Fundamentally and most importantly, the current lease has to be right and accurate.
We always check that is in place and is correct.
The lease is the most important document of all.
The compliance certificates will be done as part of what we do once the property has completed.
What happens with the letting agent and to the tenancy agreement after property completion?
On completion of the property completion we will advise you of any further actions to be taken e.g. with Property Factors or Council Tax Exemption.
We also ensure the letting agent you have been introduced to is aware of the completion.
They will contact the current tenant and arrange to get a new lease signed on your behalf as the new landlord.
They will also organise the new rental payments with the sitting tenants.
Any rent apportionment, rent owed by the previous owner is also collected and paid to you.
We make sure the whole process it is seamless and simple as it can be.
We make it look simple.
That is because of the 38 years’ experience, knowledge and expertise we have in business, in property as investors and award winning landlords.
Doing what we do takes a huge amount of work, time, teamwork and dedication.
By doing it correct at the start of the properties journey, it ensures that everything falls into place so no hassles or surprises for you.
And us being absolutely honest with you. No BS!
Thank you for reading this.
More very informative on our website News/Blogs, and can be seen here http://allianceproperty-group.co.uk/news-section/News/ (click link to open and read)
We do these blogs to help you be inspired, educate and inform you further, share our experience and knowledge we have gained over the last 38 years so you can benefit from that and become a better investor.
Gordon and James
Making a Difference