Buying Flat with Tenant in Place - queries

travel_freak

Hi there,

I am buying a flat with a tenant in place. His agreement expires in a couple of months and the sellers have issued a notice to him. I am in discussion with the tenant about renewing as I would like to keep him and he would like to stay.

As I'm new to this can anyone advise on the mechanics - and the following in particular:

1. I hope I will be exchanging and completing soon, so the tenant will remain definitely until his existing tenancy expires. When should I get the new agreement in place to safeguard myself?

2. I'm getting a buy to let mortgage but I did not apply for it on the basis that the tenant would stay - do I need to get their permission for this first?

3. This tenant has been in the flat for a couple of years apparently, paying the same rent and I would like to increase it slightly to keep pace with market rent. The tenant seems amendable to this.

4. Tenant has indicated he may be looking to move around the middle of next year and would therefore like a break clause - any advice on how these work and whether they're a good idea for a landlord to incorporate - any drawbacks? I would like to be flexible.

Many thanks in advance.

Regards

P.S. Any referrals to reliable -cheap or free?! - sites for the paperwork, agreements, notices, references for current law etc.

musey

http://www.landlordzone.co.uk/articles.htm

Lots of good information on the site above.

Also try search for a local Landlord's association they often have good information.

The following are also good places to visit.

http://www.landlords.org.uk/

http://www.arla.co.uk/info/landlords.htm

UK007BullDog

The lender would be happy to know that the property is occupied by a tennant who is paying regularily. So you are definately in a very good and fortunate position. A lot of landlords after they have bought a property might have one to two months void periods before they can find a tennant.

You dont need to tell the lender each time someone moves in or out of the property. The whole purpose of the mortgage is that it is for rental.

As long as the lender gets their payments on time they wont batter an eyelid.

Mrs_pbradley936

I bought a flat under similar circumstances and it all worked out fine. The only problem was not a legal one but concerned the inventory (it was a furnished flat) I had no idea what I had bought and what belonged to the tenant. Reason the previous owner had died and the family did not know either. With the lease, I think it was just assigned to us under the original terms. I think a break clause is an excellent idea for both sides. If someone wanted to leave one of my places I would never try and stop them because flats here rent out very easily and I would not want the hastle.

clutton_2

do make sure you only use a 6 month agreement to start with - just in case you need to get him out. Do a detailed inventory. If there non fireproof furniture get rid of it. Get him to complete the tenancy application form on https://www.landlordzone.co.uk, credit check him as if he were not in the property already. Check to see if he has a CORGI gas certificate and check when it expires. GEt one months rent as deposit. Check if he paid a deposit to the previous landlord. Get it transferred to you if he has.

finally, join National Landlords ASsociation and BUY their tenancy agreement - a free one may not help you when most needed - ie when a tenant becomes difficult. if you are a member of NLA you will get cheaper house insurance.

good luck