Stuck at parents, can I keep this buy to let

ttaylor

As title says I feel stuck at the parents despite owning one place and being over half way to 70.
I can't pay full market value and rent as this is stupid when I own one property already.
I have a flat worth 215 k and a buy to let mortgage of 100k and 15k in savings.
It's rented out for 750 a month although tenant is being a pain most months either paying late or 2/3 instalments.
Current lender can only lend me 140k maximum which would give me 55k in the bank.
On my 25k income plus 5k overtime I could get residential mortgage of 135 max thereby at a stretch a second property to live in at 190k. Which doesn't buy a lot round here.
Therefore am I forced to sell to get all my equity out?
Then I have 125 k deposit for somewhere I can live in.
Is this my only option?
How best to deal with tenant who has kids and struggles to pay on time?
She will not want to move out, I am quite sure. What rights do I have?
I just want my money out the place.shame no investors are out there any Moreno
Any advice much appreciated!

sparkey1

Could you not just serve notice, then move back into it, get a lodger whilst you do it up and then sell it. I presume she is on an assured tenancy agreement. Assuming she was signed up to a 6 month term and that has now passed, so you can issue a section 21 notice giving her 2 months to move out. Are you aware of Clause 24?

00ec25

so you have been a LL for how long yet do not know how to obtain possession and evict a tenant?

halfway to 70 means you are 35, which in today's world is not that unusual to still be living with parents.

what is it you want
a) a place of your own: so sell and buy one
b) a rental income: so stay as you are
c) both? not possible without a huge trade off on the sort of place you will be living in yourself

what do your parents want? Will they give you money to help you get out of their lives and let them have their own house back for their own pleasure?

[Deleted User]

Is she still in a fixed term? If so, how far behind is she in rent? If more than two months you can serve a S8. If not, you will have to wait until the fixed term is two months from being over and serve her a S21 to end on or after the fixed term. If she is beyond fixed term and on a periodic tenancy, you can serve notice now.

Did you protect her deposit (you will have to have done to be able to serve her a S21? Did you give her prescribed information etc?

If she is struggling, expect to have to get a possession order and bailiffs warrant which will cost you £500ish, if she has to go to the council for help.

But to be honest, you should really know this. Try looking at the Shelter website and LL forums.

Then once she is out, you can refurb or not and try to sell. You can try and sell with her still in there but viewings might be awkward and expect a lower price, with no guarantee at all the tenant will have left when you are ready to exchange (and the buyers solicitor should not permit exchange without the place being vacant unless they want to be a LL as well).

I am sure others will be on here to give more exact advice. Try reading a few pages of threads on here as well.

AdrianC

ttaylor wrote: »

I have a flat worth 215 k and a buy to let mortgage of 100k and 15k in savings.
It's rented out for 750 a month although tenant is being a pain most months either paying late or 2/3 instalments.

How much are you actually making, annually, off this investment property, after paying the mortgage (interest only?), ground rent, service charges, maintenance, management etc etc?

Current lender can only lend me 140k maximum which would give me 55k in the bank.

Can you clarify...? You're thinking of increasing the mortgage on the BtL, to free £40k equity to put to your residential purchase? And how will the extra repayments affect the yield of your rental?

On my 25k income plus 5k overtime I could get residential mortgage of 135 max thereby at a stretch a second property to live in at 190k. Which doesn't buy a lot round here.

It buys a place not massively dissimilar to what you're renting out, it'd seem.

Therefore am I forced to sell to get all my equity out?
Then I have 125 k deposit for somewhere I can live in.
Is this my only option?

Plus £135k mortgage = £260k.

How best to deal with tenant who has kids and struggles to pay on time?
She will not want to move out, I am quite sure. What rights do I have?

s21, assuming you have all your deposit etc ducks in a row.


Hey, here's a thought... You could regain possession, convert the mortgage on the flat to residential, and live there yourself!

Pixie5740

How many years have you been asking the same question on the forum?

[Deleted User]

OOps. Thanks Pixie, I missed that.

Smi1er

Let me get this right. You're 35, own a BTL, earn £30K pa, but still live at home?

Huh?

Seriously?

Time to move out IMHO. Sell the BTL and use the money as a deposit on your own home

Pixie5740

OP, perhaps you should try contacting another user called jamels2 who is the same age as you, also owns a BTL whilst living at home with parents and is still dithering about whether to fly the nest. Maybe you can help each other.

https://forums.moneysavingexpert.com/member.php?u=2021371

ttaylor

Hi and thank you for replies there was originally an AST which expired 2 years ago and have left rent the same since. No deposit was taken. Not fussed a out moving back there would prefer to buy something a bit better with own garden ,parking and no flat above etc. Parents ok with situation no pressure to go from them. Looks like I have to sell . Not bothered about a vacant period I can afford to cover it.

Smi1er

ttaylor wrote: »

Parents ok with situation no pressure to go from them. Looks like I have to sell .

Your Parents are just being polite. My Wife would be the same. I would be more honest. I would simply tell you of course you can live here, but at 35 should you really be living at home??