for all landlords...

Deals_2

if you need to increase the rent (we have a 6 month renewable tenancy agreement) to get the right mortgage and because we are lower than the market at the moment when can we increase the rent. I am thinking of sending through a letter to this effect . any ideas appreciated (also there is a shortage of properties to rent in our area in the moment so not a concern about not finding other tenants if need be in case anyone mentions this). also we cannot keep at the current rate either otherwise we cannot get the mortgage we need. thanks

thesaint

Your question is hard to understand, but you can not increase the rent during any fixed term without the tenants agreement.

If this isn't the answer, can you re-phrase your question.

silvercar

I take it you are remortgaging?

Different lenders have differing criteria, so you may be able to find a lender who will accept your application. The mortgage valuer will make an assessment of the likely rent, so unless you can show an AST at the rent you need, the amount lent will be based on the assessment.

Amitoocautious

Where is the property. Not a shortage of rental properties in most places

Wings

If you have signed your tenants up to a six months tenancy, then for that period you are unable to increase the rent. Before going on to answer your post, I always, for ease of giving the tenants notice, renew the tenancy with a new 6 months tenancy agreement after the initial 6 months period is up. If your follow the same procedure then you can increase the rent at the same time. If not, and you allow the tenancy to roll on after the initial 6 months period is up, then you need to give a notice of the increase in rent under section 13(2) of the 1988 Housing Act. The period of notice that I give being two months.

Deals_2

everything but you are saying that the lender should lend me on the basis i what i could get as rent for the property?

silvercar wrote:

I take it you are remortgaging?

Different lenders have differing criteria, so you may be able to find a lender who will accept your application. The mortgage valuer will make an assessment of the likely rent, so unless you can show an AST at the rent you need, the amount lent will be based on the assessment.

Deals_2

did a lot of research so know the market well

Amitoocautious wrote:

Where is the property. Not a shortage of rental properties in most places

Deals_2

actually say?

Wings wrote:

If you have signed your tenants up to a six months tenancy, then for that period you are unable to increase the rent. Before going on to answer your post, I always, for ease of giving the tenants notice, renew the tenancy with a new 6 months tenancy agreement after the initial 6 months period is up. If your follow the same procedure then you can increase the rent at the same time. If not, and you allow the tenancy to roll on after the initial 6 months period is up, then you need to give a notice of the increase in rent under section 13(2) of the 1988 Housing Act. The period of notice that I give being two months.

Gorgeous_George

I would also always give at least two months' notice.

Regardless of the rights ort wrongs, the legal position etc., this is people's lives we are talking about. I gave my tenanats 6 months' notice when I increased the rent from £75 to £80 per week after hanig held the rent at £75 for three years.




GG

silvercar

Deals wrote:

everything but you are saying that the lender should lend me on the basis i what i could get as rent for the property?

Yes, one of the criteria for BTL mortgages looks at the rental that could be obtained.

We had to fight with ours because the agents produced an estimate of £800-£850, the valuer said £750+. We actually got £820 within days of it being made available.

Deals_2

on getting the rental you wanted. a lot of valuers dont really know the area or follow the things as closely as the actual landlords (such as knowing the estate agents and the marketplace and what a house down the road has actually sold for etc!!!). they tend to make one or 2 calls or call in to one shop and then make their valuation. they also might not know what is developing in the area either!
the only real deals on remortgaging seem to be the one similar to yours at the moment. i do find the remortgaging fees very high though at £2000 usually , if you tie yourself in for a year more it can drop to £800 but i do think that because buy to lets are not overseen by the FSA they can charge what they want. I think this should also change.

silvercar wrote:

Yes, one of the criteria for BTL mortgages looks at the rental that could be obtained.

We had to fight with ours because the agents produced an estimate of £800-£850, the valuer said £750+. We actually got £820 within days of it being made available.