Protected tenancy in PART of house

TamsinC

Has anyone come across a house with one section of it covered by a protected tenancy? It is a 2 bed house with an attached one bed house with a protected tenancy on it. SO you would buy the freehold to both, but only live in one bit. What are the chances of a small mortgage on the house? It would be LTV of 20%. Eventually we would hope include the 1 bed n the 2 bed once the tenancy ends, and upgrade the 1 bed at the same time as the 2 bed if the tenant agreed. Any advice. Should I run away very very quickly?

00ec25

what do you mean by "protected" tenancy?

if you seriously mean a regulated tenancy (ie one that began before 15 Jan 1989) then do indeed run away now before you learn a probably expensive lesson

TamsinC

00ec25 wrote: »

what do you mean by "protected" tenancy?

if you seriously mean a regulated tenancy (ie one that began before 15 Jan 1989) then do indeed run away now before you learn a probably expensive lesson

Probably that - but in the estate agent particulars it is referred to as a protected tenancy - could you explain why?

Cakeguts

TamsinC wrote: »

Probably that - but in the estate agent particulars it is referred to as a protected tenancy - could you explain why?

The tenant has security of tenure. The tenancy does not run out. It goes on for ever until the person dies and then sometimes a relative can inherit it.

TamsinC

Cakeguts wrote: »

The tenant has security of tenure. The tenancy does not run out. It goes on for ever until the person dies and then sometimes a relative can inherit it.

Many thanks for the reply - I understand that - I know these are often held by old people - however, assuming the old person has already passed it on once and/or there is no one to pass it on to - what other reasons could there be to run away? Assuming we would be happy to live in the other part of the house and just wait? (obviously I would need to find out the age of the resident and family ties etc)

eddddy

TamsinC wrote: »

It is a 2 bed house with an attached one bed house with a protected tenancy on it. SO you would buy the freehold to both, but only live in one bit. What are the chances of a small mortgage on the house? It would be LTV of 20%.

It's unlikely that you would get a mortgage on a freehold property with part of it rented out on a protected tenancy.

But if you're really keen on this property, you might be able to do something creative like:

• Split the freehold title into two - and get a mortgage on just the two bedroom freehold house, or...

• Buy the freehold of the whole property and create a lease for the two bedroom house - and get a mortgage on the two bedroom leasehold house.

But you will take on the headache of a protected tenant... below market rent, unable to evict, building repairs, insurance etc.

unforeseen

You could be waiting a very long time since two successions are allowed. Do you plan on making this your forever home as you could be waiting 30+ years. Plus the rent will be lower than market and strictly controlled.

davidmcn

TamsinC wrote: »

what other reasons could there be to run away?

Because it's not mortgageable. Even if you have enough cash to buy it and take the risk, you won't be able to get rid of it to anybody else who needs a mortgage until the tenancy is over.

TamsinC

Many thanks to all - we would require a small mortgage and much as the property is very enticing - will leave it.