BTL Assured Tenancy Proof

tekton23

Hi,

If I was to buy a BTL property, what proof would be required of tenancy?

If after 1 year I decided to let it on a series of short term lets, do I still need to provide evidence to the mortgage lender, or will they be happy as long as they receive payment each month?

For example if I let the rooms separately at a later stage, is there any reason for the lender to know and would they care?

Thanks,

T23

silvercar

Generally speaking, the only time that proof is required is if you are buying a property with existing tenants. Then the solicitor needs to see proof that the tenants only have an AST not further rights.

You also need to be clear that when you apply for a mortgage you are signing up to borrow money under the agreed terms ie if the lender requires you to let under an AST then that is what you need to do.

After that you are probably ok to do what you want. Technically breaching a term of the mortgage to do short term lets, whether the lender would care is doubtful as short term lets have less rights.

Letting rooms is a different issue, as you need to comply with HMO legislation, council registration requirements and a lender repossessing would have the job of removing tenants individually.

Whatever you do, make sure you have the correct insurance. HMO is going to cost you more to insure, but you need to have the correct coverage.

uncreative

All the BTL properties we have were bought with some small works required and tenants couldnt move in, so the bank let us post 6 months rent in escrow as they weren't going to be let immediately.

LilPretty

Uncreative - hi - can you kindly expantiate on your btl via ur ltd company please?

what is reqd? deposit etc..

Thanks

tekton23

My hopes here seem to have been scuppered by the changes to mortgage tax relief.

I would like to find a way to buy a second property and buy-to-let was looking like my only hope. However, with the increased tax this now looks unlikely.

Are there any other ways I could get borrowing for a second house/flat?

T23

amnblog

tekton23 wrote: »

My hopes here seem to have been scuppered by the changes to mortgage tax relief.

Why?


Those new rules were announced well before your first post.

dimbo61

Simple really, save up deposit for new property and ask for consent to let from existing lender.