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Buying house with tenant
jukes_2
Posts: 14 Forumite
Hi,
We are looking to purchase a buy to let. We have seen a house which currently has a tenant in it, but is in a good location etc.
She told us that the company selling the house bought it off her 2 years ago and she rents it back as she needed to release the money. She wants to continue to live there which would be fine as she feels it's home, even though she knows she has no rights to it.
She seems to be paying at least £100/month too much rent but I think it's through benefits as husband on incapacity.
In theory for us this is an advantage as we'd have tenants with no plans to move who pay higher rent we'd get for a similar house.
BUT, what should we look out for? Could there be complications because its being sold by a rent back company?
Any advice appreciated.
Thanks
We are looking to purchase a buy to let. We have seen a house which currently has a tenant in it, but is in a good location etc.
She told us that the company selling the house bought it off her 2 years ago and she rents it back as she needed to release the money. She wants to continue to live there which would be fine as she feels it's home, even though she knows she has no rights to it.
She seems to be paying at least £100/month too much rent but I think it's through benefits as husband on incapacity.
In theory for us this is an advantage as we'd have tenants with no plans to move who pay higher rent we'd get for a similar house.
BUT, what should we look out for? Could there be complications because its being sold by a rent back company?
Any advice appreciated.
Thanks
0
Comments
-
Check carefully what type of contract the tenant has? AST? Assured tenancy?
What term?
Deposit paid?
All tenancy regulations complied with?
Look carefully at the tenant too. If she lost her entitlement to Incapacity Benefit (the government is changing the rules...) what would happen to her ability to pay the rent? And what would you do if she went into arrears? Evict?0
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