buying a rented house

bouicca21

Cross fingers, I may be able to look seriously for a new house in the next few months. A house has just come on to the market that I would seriously consider, except that ... it is advertised as being rented for another 18 months.

Now I have seen enough on this forum to know that getting rid of tenants is not quick or easy unless they are prepared to go. Presumably a rented house is difficult to mortgage. Presumably a sitting tenant reduces the value of the house - or does it? The rental yield (assuming they actually pay up) seems low to me - it's not a lot more than I pay for a small flat in a nearby but less desireable area.

I doubt I'd really go for this place but am interested to hear what you knowledgeable folks have to say about the wisdom or idiocy of such a purchase. I've learned a heck of a lot from your discussions.

Mr_Moo_2

Are you going to continue renting it out? In which case you'll need BTL mortgage. If the tenants are OK you've got guaranteed occupancy & rental income for 18 months even if the yield is low. If you want to live it in, well, that's going to be a bit tricky as there's someone else there already, and any mortgage lender will want vacant posession. Tenants may be illing to netogitate an early exit but they don't have to and getting them out can be, as you say, problematic if not done properly.

bouicca21

I'd want to live in it!

G_M

How canlyou live in it if itisrentedfor 18 months...?

You'll needaBTL mortgage (expensive)

You'll needtopay taxonthe rent.

You'll need to compy with 326 regulations as a landlord.

and so on...

Werdnal

If it is definately rented for the next 18 months I'd steer well clear. You will need a BTL mortgage - minimum 25% deposit. Then need to declare tax on the rent you receive, attend to all repairs and maintenance promptly, deal with tenants who may not be the best most reliable payers in the world, and even after the 18 months, if they don't want to leave, you then have to evict through the courts which can be costly and lengthy process. Once they finally leave, you may also be faced with the expense of doing the place up due to their neglect or damage.

If you are intending to buy to live in it, leave the Landlording to those who want the stress and expense of letting!

45002

bouicca21 wrote: »

Cross fingers, I may be able to look seriously for a new house in the next few months. A house has just come on to the market that I would seriously consider, except that ... it is advertised as being rented for another 18 months.

Now I have seen enough on this forum to know that getting rid of tenants is not quick or easy unless they are prepared to go. Presumably a rented house is difficult to mortgage. Presumably a sitting tenant reduces the value of the house - or does it? The rental yield (assuming they actually pay up) seems low to me - it's not a lot more than I pay for a small flat in a nearby but less desireable area.

I doubt I'd really go for this place but am interested to hear what you knowledgeable folks have to say about the wisdom or idiocy of such a purchase. I've learned a heck of a lot from your discussions.

Find out Exactly when did the tenant 1st move in ? do it yourself if you can and don't just rely on EA or CS to do it for you

and find out why is the current LL selling up with a tenant in place !