# House for sale with tenant in it for 25 years



## Clonback (17 Jun 2020)

I am considering purchasing a property with tenant there for 25 years and paying approximately 25% under current market rental.
In the current climate what  are the main issues to consider?


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## Ravima (17 Jun 2020)

1 - are you happy to buy with tenant in situ?
2 - are you happy with return given purchase price (plus ancillary costs) and current rent?
3 - is tenant 'hassle free' to landlord?

If you are happy with both, then what's the problem?

On the other hand, would you rather
1 - buy with no tenant
2 - buy with tenant and  increase rent, complying with all legislation re proper notice 
3 - redecorate and upgrade


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## elcato (18 Jun 2020)

What is the purpose of buying the house ? Is it investment or for moving into in the future ? In my limited experience of sitting tenants years ago, they tend to stay there till they die or are incapable of living there. So the age of the tenant is important (and health if you can get a glimpse and make a call on that).


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## Clonback (19 Jun 2020)

Elcato -- The purpose is for an investment and the tenant is 75.


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## NoRegretsCoyote (20 Jun 2020)

A 75-year old male has an average life expectancy of about 11 years, a female 13 years.


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## PMU (20 Jun 2020)

You need to check the lease with a solicitor.  For example, if the tenant marries, can the spouse remain in the property, if the tenant were to pop his clogs.


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## Saavy99 (20 Jun 2020)

PMU said:


> if the tennent marries, can the spouse remain in the property



Marry at age 75...highly unlikely


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## Ravima (20 Jun 2020)

not necessarily so, if he/she has loads of money!!!!

If tenant is 75 and you are happy with the return, and the tenant is not a bothersome tenant, then take a chance.


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## Clonback (20 Jun 2020)

The lease ended some years ago and the tenant is anxious to remain.


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## Ravima (20 Jun 2020)

if he is still there, he has rights. Your decision is are you happy with the yield? if so, then buy, if not, then don't.  It's better, in my opinion to have a happy tenant, than having to try to evict, renovate and re let.


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## Clonback (20 Jun 2020)

Thanks Ravima.My main issue is how to increase the rent as its currently 25% underrented.


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## PaddyBloggit (20 Jun 2020)

Clonback said:


> My main issue is how to increase the rent as its currently 25% underrented.



Your prospective tenant is 75 years old and may be of limited financial means. If you do buy the place, could the sitting tenant afford a rent increase?


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## Clonback (20 Jun 2020)

Yes he is financially secure


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## luckystar (20 Jun 2020)

Surely if the property is in the RPZ then you’re capped at the 4%?
Had friends that bought years ago with sitting tenants in part of the property. Was a bit of a nightmare esp when he went into a home and his nephew (power of attorney) wouldn’t relinquish rights while he was alive. Took a long time. Even with the reduction in purchase price I don’t think it was worth it.


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## cremeegg (21 Jun 2020)

You have not mentioned the most important issue. What are you paying for this property.

If its at full market price, then you would be crazy to go near it.

A reduction of 1/4 would not satisfy me, there are a lot of potential pitfalls. At a 1/3 discount to market price I would be tempted.


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## galway_blow_in (21 Jun 2020)

sounds like a very generous thing to do , many would be wary 

best of luck


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## Mrs Vimes (21 Jun 2020)

Saavy99 said:


> Marry at age 75...highly unlikely



Completely off-topic but reminds me of Irene Triplett, bet no-one thought they'd be paying a pension for 165 years!


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## PMU (21 Jun 2020)

Mrs Vimes said:


> Completely off-topic but reminds me of Irene Triplett, bet no-one thought they'd be paying a pension for 165 years!


  It's not off topic.  It is a risk.  I mentioned it because I have a friend who was in this situation.  He bought a house priced below market rate because it had a sitting tenant (who was of advanced years).   The tenant passed away soon after they had purchased it, but it was only this point they discovered the tenant was in the process of getting married.


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## Leo (22 Jun 2020)

PMU said:


> The tenant passed away soon after they had purchased it, but it was only this point they discovered the tenant was in the process of getting married.



Did these two get married in the end I wonder?


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## PaddyBloggit (22 Jun 2020)

Leo said:


> Did these two get married in the end I wonder?



They did and the elder man died: https://www.irishtimes.com/news/ire...g-time-friend-for-tax-purposes-dies-1.4139693


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## Mrs Vimes (9 Jan 2021)

Mrs Vimes said:


> Completely off-topic but reminds me of Irene Triplett, bet no-one thought they'd be paying a pension for 165 years!



Just spotted this story  today that Ms Triplett wasn't the last person entitled to that pension- interesting addendum.


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