Mortgage query - property with tenants

nocturne_sa

Hi

We are close to making an offer on a 1 bed flat (mortgage agreed in principle). However, the tenants are still in the property and their contract runs out in July. The landlord is keen to sell right now with the tenants in. How will this affect my mortgage application? I assume HSBC will not let me take out a residential mortgage on the flat until tenants move out?

Is there any way around this apart from getting a buy to let mortgage for 4 months and then shifting to a personal mortgage?

thanks!

Thrugelmir

Inform the vendor (landlord) you require vacant posession of the property.

The existing tenants are not your issue to deal with.

Annisele

You're right, HSBC won't let you take on a normal residential mortgage with tenants in the property (and your solicitor probably won't let you exchange until they're gone).

A BTL for four months sounds a *very* bad idea to me - do you really want to be saddled with all the legal responsibilities that go with being a landlord? What would you do if the tenants don't leave in July? And that's assuming you can even get a BTL on the place; generally they need bigger deposits than residential mortgages.

nocturne_sa

Thanks for the input guys. Do I notify the landlord after he has accepted my offer or should my offer be conditional on the tenants moving out?

I imagine there must be a 2 month notice break clause?

Thrugelmir

Inform the Estate Agent of your interest , but say that you will require confirmation of the date that the tenants will be vacating the property in order to make a formal offer.

Annisele

nocturne_sa wrote: »

I imagine there must be a 2 month notice break clause?

Not necessarily. And even if there is, it doesn't mean the tenants have to move out just because they've been given notice.

I think Thrugelmir's is the right approach. You could make the offer conditional on the tenants moving out; so long as you don't exchange before they've actually left you should be fine.