Buying a flat with tenants still living in it

You've found a flat you love, and the listing says it's currently let. Pause there. Whether the tenant leaves before you complete changes almost everything about your purchase.

If you're buying to live in the place yourself, you need the flat empty on completion day. That's what solicitors call vacant possession. If a tenant has a legal right to stay, you can own the flat on paper and still not be able to move in. You'd be a landlord by accident, usually with a mortgage that doesn't allow it.

So the first question to ask, early and in writing, is simple. Will the flat be empty when we complete, and how is that going to happen?

Vacant possession means the seller hands over the flat empty of people and of their belongings, with keys available on completion. The standard contract terms normally assume that's what you're getting, unless the contract says otherwise. Check that it does.

The catch is that a landlord can't just tell a tenant to be out by a certain date. In England and Wales, how a tenancy can end depends on the type of tenancy and the law at the time. That law has been changing, so I won't pretend to give you the final word here. Your solicitor should confirm how the seller can lawfully end this particular tenancy and how long it's likely to take, using the rules as they stand when you're buying.

What you want to see is the seller either ending the tenancy properly before exchange, or the tenant agreeing in writing to leave by a fixed date. A vague promise that the tenants are moving on soon isn't good enough. Neither is the estate agent saying it'll be fine.

A standard residential mortgage is written on the basis that you'll live in the property. If a tenant is still there when you complete, you're likely to be in breach of those terms. Lenders take that seriously, because the valuation and the lending are based on a home you occupy, not a rental.

So tell your broker and the lender about the tenancy up front. Don't leave it for the solicitor to stumble over. Many lenders will want confirmation that the flat will be vacant on completion, and some will want that in writing from the seller's solicitor. Each lender has its own policy, so there's no single rule to quote.

If you actually want to keep the tenant, it's a different product altogether. That would normally mean a buy to let mortgage, with different affordability tests and usually a bigger deposit. A lender might also have rules about letting out a property you've bought as a home, often called consent to let. Don't try to blur the two. Tell the truth about your plans and get the right mortgage for them.

Ask your solicitor to request these from the seller as soon as you know about the tenancy.

1. 1A copy of the tenancy agreement and any renewals or amendments.
2. 2Details of the type of tenancy and its start date, end date and rent.
3. 3Proof that any deposit is protected in an approved scheme, plus the prescribed information given to the tenant.
4. 4Copies of the gas safety certificate, electrical safety report and energy performance certificate.
5. 5Evidence of smoke and carbon monoxide alarms, and any right to rent checks the landlord made.
6. 6Copies of any notices served on the tenant, with proof of how and when they were served.
7. 7Written confirmation from the seller that vacant possession will be given, ideally with the tenant's agreement to leave.

The notices matter most. A badly served notice can leave the tenant with a right to stay, however firmly the seller insists otherwise. Your solicitor should read them, not just file them.

A flat is usually leasehold, so the usual homework doesn't go away just because someone is renting it. You still need the lease, the service charge accounts, the ground rent position and the lease length.

Lease length matters for the mortgage. Lenders commonly want around 70 to 85 years left when you apply and 30 to 40 years left when the mortgage ends, but each sets its own figure. If the lease is short, extending can be costly, and marriage value still applies where fewer than 80 years remain, because the part of the 2024 reform act that abolishes it isn't in force and has no start date. You can also claim a statutory extension without owning for two years first, as that rule went on 31 January 2025.

You can pay 7 pounds on gov.uk to download the title register, title plan or a filed copy of the lease. It's cheap, and worth doing before you spend on surveys.

Don't exchange contracts until the tenancy position is nailed down. Once you exchange, you're legally committed, and a tenant who won't leave becomes your problem.

Sensible protections include a fixed completion date linked to the tenant moving out, a clause letting you pull out if vacant possession isn't given, and a seller's warranty that the paperwork is accurate. Your solicitor can advise on the wording.

And be honest with yourself about timing. If your own rental is ending or your mortgage offer is about to expire, a tenant who might not leave is a real risk. In that case, walking away from this flat and finding another is often the calmer choice. Because the law around ending tenancies may change, confirm the current rules with a solicitor before you commit.