The Property Podcast
ASK475: How do I de-risk with delayed completion? PLUS: Should I use a Limited Company?
May 6, 2025
In this engaging discussion, listeners learn about navigating the risks of buying properties with sitting tenants, especially when facing a six-month delay. The importance of legal support and proactive communication is emphasized to avoid costly issues. Additionally, the conversation explores the benefits of owning properties through a limited company versus personally, highlighting the need for professional tax advice. It's all about making informed decisions in the property market!
06:21
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Quick takeaways
- Managing a property with sitting tenants during a delayed completion requires careful risk management and solicitor guidance to protect buyer interests.
- Owning properties through both personal names and a limited company allows investors to effectively optimize tax benefits and comply with regulations.
Deep dives
Managing Risks with Delayed Completion and Sitting Tenants
Taking on a property with sitting tenants during a delayed completion introduces several risks that require careful management. It's essential to work with a knowledgeable solicitor who can ensure that all necessary clauses are included in the agreement to protect the buyer's interests. Key considerations include having the seller continue to pay service charges and ground rent during this interim period, and securing statements regarding these payments at both the exchange and completion stages. While there’s an inherent risk of tenant-related issues arising before completion, proactive measures and negotiating a discount can provide a buffer against potential property degradation.
