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Purchasing BTL keeping current tenant (Scotland)
Beckyy
Posts: 2,833 Forumite
I'm in Scotland.
OH and I are relatively new LL's with 1 BTL. We would like to purchase another soon and have been to view a property last week. It is currently let out to a tenant who (I will seek confirmation and proof) is on a SaT of which the initial period has ended and they are now renting on a monthly basis with 1 month notice from either party required. EA has said they are willing to move for the LL to sell but if the opportunity arises they would like to stay indefinitely as family are close by.
The property needs some remedial work done for the purchase, and also needs a cosmetic overhaul. However the current tenant is happy with the house as it is and is paying more rent than we could get for the property without doing all cosmetic work immediately ontop of remedial work. Providing they could provide references/satisfy a credit check we would be interested in keeping the tenant on a new 6 month SaT.
In an ideal world current LL would end his tenancy at sale, and we could start a new tenancy at sale. Could it be that simple or would problems arise due to previous LL giving notice and tenant not actually leaving?
I also have a few concerns over how easily we would be able to carry out remedial work, new inventory, electrical checks etc. with a tenant in situ so I would be grateful to hear of others who have bought a house with tenant?
I will be seeking some advice from our solictor but was just wondering if anybody else could provide an advice/tips on the situation.
OH and I are relatively new LL's with 1 BTL. We would like to purchase another soon and have been to view a property last week. It is currently let out to a tenant who (I will seek confirmation and proof) is on a SaT of which the initial period has ended and they are now renting on a monthly basis with 1 month notice from either party required. EA has said they are willing to move for the LL to sell but if the opportunity arises they would like to stay indefinitely as family are close by.
The property needs some remedial work done for the purchase, and also needs a cosmetic overhaul. However the current tenant is happy with the house as it is and is paying more rent than we could get for the property without doing all cosmetic work immediately ontop of remedial work. Providing they could provide references/satisfy a credit check we would be interested in keeping the tenant on a new 6 month SaT.
In an ideal world current LL would end his tenancy at sale, and we could start a new tenancy at sale. Could it be that simple or would problems arise due to previous LL giving notice and tenant not actually leaving?
I also have a few concerns over how easily we would be able to carry out remedial work, new inventory, electrical checks etc. with a tenant in situ so I would be grateful to hear of others who have bought a house with tenant?
I will be seeking some advice from our solictor but was just wondering if anybody else could provide an advice/tips on the situation.
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Comments
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Bump. Anyone?0
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If you are happy with the tenant then why do a new tenancy agreement? In England - and I assume in Scotland, the tenancy continues despite change of ownership. If the tenancy has gone periodic, then you must give 2 months notice - not one - but the tenant may give just one month. The advantage is with leaving things as they are in case the tenant does turn out to be problematic.
Make sure that custody of the tenants deposit is turned over to you - check too that the deposit has been protected as required by law.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
Also why a credit check, proof is in the pudding of them paying before. Tenants are not made of moneyDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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I would want to start a new tenancy to know that I have the tenant there for at least 6 months while we gradually do or save for cosmetic upgrades, as I would be very suprised if we found a new tenant easily without doing a lot beforehand. I also wonder if there may be any problems with the mortgage company with regards to 'taking over' a tenancy rather than starting a new one. No idea if there would be yet though. I didn't think about leaving the tenancy being a quicker to end if there tenant wasn't ideal though, thanks for mentioning it.
I would reference/check any other tenant before letting to them so don't think this would be any different. Even if the current LL was having problems with them I wouldn't trust them to be disclosed for risk of putting me off. I don't mean to sound like uptight but you can't be too careful IMO.0 -
You are overthinking this. If you credit check the existing tenant, you might get right up his nose - and I would be sympathetic to him if you did.
I would reference/check any other tenant before letting to them so don't think this would be any different. Even if the current LL was having problems with them I wouldn't trust them to be disclosed for risk of putting me off. I don't mean to sound like uptight but you can't be too careful IMO.
What happens if you credit check him and he has heaps of debt? Are you going to evict him and get the void you are trying to avoid? What if he has heaps of debt but he actually pays his rent on time? Are you even going to have the standing to credit check him until you own the place?
What you need is a record of his performance in paying his rent as part of your purchase queries.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
I will be seeking some advice from our solictor .
You're not getting a lot of replies because this is a complex situation with a lot of variables. Landlord/tenant law, mortgage issues, transfer of obligations, etc.
Suggest you consult your solicitor.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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