First time buyer - AST

Madmax1983

Hi, just looking for advice on first time buyers and properties with tenancies..

I found a property which is within my budget, but it is being sold with a current shorthold tenancy until October , I would be happy to wait until October to move in, but obviously it will be sold by then... I’m a first time buyer and I know mortgage lenders generally won’t give buy-to-let mortgages to first time buyers.. but do you think there is any work around if I had the intention on moving into property as soon as the tenancy was up? (Which would be in 9 months)

There are not many one bedroom flats within my budget and all of them that I’ve seen are sold with a tenant in them. I’m on a basic income and this is an amazing opportunity if there’s a way round this AST ending October.

Exodi

I usually avoid properties with sitting tenants as there's a very real risk the tenant doesn't move out when asked. In an ideal world, all properties intended for residential sale would be sold with vacant possession.

The property is likely being sold with the tenant in-situ as this would appeal to people intending to let the property out, thus removing the void period and giving instant income.

I think you're vastly understating the difficulty of changing a mortgage between buy-to-let and residential (which to my understanding is only really an option should you come to remortgage).

It's unsuitable for you, I personally don't think you can exchange contracts on this property without vacant possession.

davidmcn

Madmax1983 wrote: »

do you think there is any work around if I had the intention on moving into property as soon as the tenancy was up?

No. Lenders deal with the here and now, not your stated future plans.

Also you miss out on the FTB relief from SDLT if you're not buying your own residence.

Madmax1983

Thank you all. Just checking. I don’t have a clue about this stuff. I’ll keep looking.

Silver_Queen

You could ask the seller to ensure vacant possession, it would then be the seller's decision about whether to get the tenant out and how. Seller would be well within his rights to say no though.