Buy-to-let existing tennants refusal

Firsttimebuyer25

Hello,

Apologies if this is answered elsewhere, or just obvious, but I'm a first time buyer considering a buy-to-let mortgage and I've found a suitable proeprty which has tennants already in place. They're on an AST for the next 2 yrs and the agency fees have been covered for the duration of that time - which obviously makes it quite an attractive proposition.

The problem is that my high st bank say they point blank wouldn't lend if there are tenants in place. They didn't explain why fully but mentioned that it can be harder to reposess if they need to, which doesn't make sense to me but I'm no expert!

So, my question is if other people have come across this and if so if there is any way round it?

Can I come to some kind of re-signing agreement with the tenants, which would satisfy the bank's lending policy for instance? Or perhaps there are other lenders who would lend with tenants in situ?

Any advice very gratefully received.

Thanks!

Simon_gloster

If its a purchase then vacant possession, ie no !!!!!! in there, needs to happen before completion. They would have to remove all their stuff then move back in within a matter of weeks. On a purchase they have the right to see out their tenancy. The landlord if this is the case is a buffoon and a novice idiot.

As you have found out, repossession rites are waived if an existing tenancy is running, so lenders run a mile.

Find another property or get the landlord to legally end the contract.........aaahhhhh bisto.

kingstreet

Are you a first time buyer and a first time landlord? Do you already own a residence you reside in?

What deposit do you have in % terms?

What's the mortgage amount and the monthly rental income?

Leon_W

Lenders will only approve a maximum 12 month AST anyway. Theoretically you could default on your mortgage in month 1 and, in your case, they couldn't repo for a further two years. The vendor of the property is only going to be able to sell to cash buyers.

Conrad

Firsttimebuyer25 wrote: »

I'm a first time buyer considering a buy-to-let mortgage and

Which Bank lends on a B2L basis to a FTB?

Dave_Ham

Conrad wrote: »

Which Bank lends on a B2L basis to a FTB?

I do not know - ask a mortgage broker?

Come on, starts with V ends with N and recently gone through a change of name!