Buying currently tenanted house as PPR

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Thirsty

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Family member looking at purchasing property at auction; legal pack is being reviewed.

Property is listed as tenanted, terms unknown.

No finance required for purchase.

Intention is that it will be their PPR; they will follow the procedure re notice etc., when Covid restrictions lifted.

My question is, how 'bad' could it get?

If tenant overholds, next step PRTB? How long before they make ruling?
Tenant doesn't leave, then court order? Approx cost?

Who enforces the court order? Is there a cost to that?

My thinking is that family member should assume worst case, put a figure on it and add that to the purchase cost & see if the numbers still stack up.
 
My initial reaction was don't touch it, but your summary is a much better approach:

Thirsty said:
My thinking is that family member should assume worst case, put a figure on it and add that to the purchase cost & see if the numbers still stack up.
Click to expand...

Most people will be put off by the uncertainty which should be reflected in the price.

Call to the house outside the viewing time and talk to the tenant.

Brendan
 
Good plan.

Wondering what sort of money they should be thinking of?

I know we could all say, how long is a piece of string; but the legal process should be clear / quantifiable?
 
Brendan Burgess said:
My initial reaction was don't touch it, but your summary is a much better approach:



Most people will be put off by the uncertainty which should be reflected in the price.

Call to the house outside the viewing time and talk to the tenant.

Brendan
Click to expand...

If you were the tenant,would you discuss anything with some random person who knocks at your door ?
 
Thirsty said:
Family member looking at purchasing property at auction; legal pack is being reviewed.

Property is listed as tenanted, terms unknown.

No finance required for purchase.

Intention is that it will be their PPR; they will follow the procedure re notice etc., when Covid restrictions lifted.

My question is, how 'bad' could it get?

If tenant overholds, next step PRTB? How long before they make ruling?
Tenant doesn't leave, then court order? Approx cost?

Who enforces the court order? Is there a cost to that?

My thinking is that family member should assume worst case, put a figure on it and add that to the purchase cost & see if the numbers still stack up.
Click to expand...


Op could I ask the cost too review the legal pack prior too auction ?
It could take 12-24months if going the legal route
 
What if the tenant is a sitting tenant who is allowed stay there till death ? As an example, a relative bought a house in 1985 as a 'bargain' due to sitting tenant and he only died 3 years ago. Are the willing to wait 30 years for vacant possession ? It's woth considering as a worst case scenario.
 
It could take a number of years and cost 10's of thousands with no rent paid in the interim.
 
Getting back on track.

Is there a likely estimate of what it might cost to evict a tenant?
 
Thirsty said:
but the legal process should be clear / quantifiable?
Click to expand...

Why should it, how would suit the legal profession.


Thirsty said:
Is there a likely estimate of what it might cost to evict a tenant?
Click to expand...

No, there isn't.

In most cases, despite what you might think, when you give a tenant notice they leave within the notice period.

In a worst case scenario there is no limit to the legal costs involved. Look at the case in Roscommon recently, that must have cost in the hundreds of thousands. And that was a mortgage defaulter, a tenant might have an even stronger position.
 
cremeegg said:
Why should it, how would suit the legal profession.




No, there isn't.

In most cases, despite what you might think, when you give a tenant notice they leave within the notice period.

In a worst case scenario there is no limit to the legal costs involved. Look at the case in Roscommon recently, that must have cost in the hundreds of thousands. And that was a mortgage defaulter, a tenant might have an even stronger position.
Click to expand...
Fair points.

Purely based on anecdotal evidence, but it seems to me that its harder for banks to repossess than it is for landlords.
 
The cheapest option: give the tenant 5k cash if they move out within 2 months.

Otherwise, it's how long is a piece of string.

One case I'm aware of, it took 18 months, to go through the full process. No rent, and already had unpaid rent before that. Then the tenant moved out without saying anything, but left the house unlocked, intentionally, and the house was completely trashed overnight. Kitchen destroyed, radiators ripped off the walls, copper pipes removed flooding house, electrics pulled out, kitchen destroyed, etc.
 
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