Hi i wonder if someone is able to assist me with this deal as i'm not really sure the path to go down with this.

So i have a vendor who is struggling with their BTL property. Basically the tenants AST ran out in March and since March tenants are still living in the property without paying any rent, and the vendor has been unable to pay the mortgage. So she is 3 months in arrears. The rent for the property is £800 although similar properties are being rented for £950. The mortgage payment is near enough the rent. The property has equity in it as the property is worth £230K and the mortgage was £170K plus the arrears now.

She has tried removing the tenants but because it costs money, and the tenants keep threatening her by going to CAB, and downloading paperwork off the internet she feel a little intimidated. This property was going to be a retirement plan for the couple and it's turned into a bit of a nightmare for them.

My initial thoughts were to try and secure an option, then see what i can do to remove the tenants, and then sell it using an assisted sale strategy. However, the killer comes that she has a redemption until 2013, which is quite alot (waiting confirmation). So now it looks like it will be a standard lease option with a tenant buyer in their.

But the main problem is trying to get rid of the tenants. Unfortunately i don't have experience in this. Is there anyone else out that might have experience in this and what i need to do. Surely if the AST has run out, then the tenants have no rights to be in the property. Can anyone guess how much it would cost to get rid of them.

The property will also require some work, like painting & Decorating etc.

What would be the best way to approach this deal.

Look forward to your replies.

Thanks

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www.home-rescue.co.uk
Buying in Home Counties & London

As regards the tenant, issue a section 21 immediatly and contact local housing benefit (if they are claiming)for direct payment

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North Manchester letting agents, property traders, houses bought for cash, finders fees paid,mike@brentwoodinvestments.co.uk

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But before i spend money paying to get rid of their tenants, do i not want to secure a lease , an interest in the property in someway.
I was thinking getting her to sign a letter of authority allowing met o speak to the mortgage lender, then getting mroe time from the lender, securing the lease, arranging to evict the tenants and going from there really.

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www.home-rescue.co.uk
Buying in Home Counties & London

To cover their backs & get a money order issue a section 8 & a section 21 immediately. If you haven't already, join the NLA & use their free advice line. Get the tenants out ASAP.

Tell the vendors to ignore anything the tenants say or produce from the internet or CAB.

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Looking for Below Market Value leads for TS & DL postcodes.
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Consider all sides, but another way to look at this:

I once read that a property investor in the US, will sometimes
approach the tenants that are, obviously entrenched and don't care.

Explain the situation, possibly offer to pay for a removal van, help with deposit
on a new place/cash payment, if they move on an agreed date, conditional on leaving the house in broomswept condition, undamaged.

Forcible removal vs coaxing them out.

Good Luck,

Ray