BTl - taking over existing tenants

gallygirl

Mortgage is on our own property (paid off btl with specific remortgage, tax man happy), we'll be selling property it is on so will carry it over. 0.99 above base rate. Tax man happy with that as well as long as short gap.

Yield is quite good for this area - could got more if bought ex-council or older property but want nicer area and low maintenance.

ognum

anselld wrote: »

OP can ask tenants to sign a new agreement on completion but tenants are not obliged to do so. The tenancy continues on on completion and the new L becomes responsible for the the remainder of the pre-existing tenancy contract.

So OP - make sure you are happy with all aspects of the contract as you cannot rely on the T re-signing.

I understand tenants are not obliged to do so, I did stipulate this as part of my agreement to buy and the tenants had been given notice but wanted to stay so they were happier having an AST and some security to stay the three months they needed which is why I inserted a break clause for them. I could have waited for them to go but neither the vendor or the tenants wanted this.

Taking on a property with tenants is about good communication with all parties. I arranged a meeting with them at a time convenient to them to talk. The new LL needs to find out what the tenants anxieties and worries are. I was happy to work with them and happily on completion day their months rent landed in my bank account so I guess they are happy too.

G_M

gallygirl wrote: »

Thanks for all the advice. The agents offer a range of services from full to tenant finding only and are happy for us to use them in any capacity or not at all. Everything is in good condition in the property, we may just use them for the inventory check on completion and use our own rental agreement.

Don' stick with the current agent just because they "offer a range of services from full to tenant finding only and are happy for us to use them in any capacity or not at all."

Of course they'll offer the full range and agree to whatever you want - they are looking for business!

If they are good agents, by all means stick with them once you'e checked them out.

Letting Agents (Tips for selecting, and tips for sacking them)

Campervanman

Annisele wrote: »

If you were buying with a mortgage, that does make a difference.

If you had a residential mortgage on the first property, you wouldn't have been allowed to let the property out - so you'd have needed vacant possession to comply with your mortgage terms. For the second property, if you had a BTL mortgage your lender would have been (in principle) quite happy with existing tenants.

This makes sense - thank you.