Advice on buying buy2let with tenants

GemmaZE

Totally agree. It’s lots of risks and leverage if not for good enough profit. 

Stupid question - If the contract is signed with 4 ppl all together ( not individually), is this still classified as HMO?  

As i saw on HMO application form required “The Licence Holder must provide each of the occupiers of the house with a written statement of the terms and conditions on which they occupy the house (e.g. a tenancy or licence agreement). The licence holder must declare at the point “.

[Deleted User]

GemmaZE said:

Totally agree. It’s lots of risks and leverage if not for good enough profit. 

Stupid question - If the contract is signed with 4 ppl all together ( not individually), is this still classified as HMO?  

As i saw on HMO application form required “The Licence Holder must provide each of the occupiers of the house with a written statement of the terms and conditions on which they occupy the house (e.g. a tenancy or licence agreement). The licence holder must declare at the point “.

If the 4 people are unrelated then most likely yes, it will still be HMO. 

GemmaZE

Lover_of_Lycra said:

GemmaZE said:

Totally agree. It’s lots of risks and leverage if not for good enough profit. 

Stupid question - If the contract is signed with 4 ppl all together ( not individually), is this still classified as HMO?  

As i saw on HMO application form required “The Licence Holder must provide each of the occupiers of the house with a written statement of the terms and conditions on which they occupy the house (e.g. a tenancy or licence agreement). The licence holder must declare at the point “.

If the 4 people are unrelated then most likely yes, it will still be HMO. 

Thanks a lot. Does it mean we would need 4 separate contracts per Council’s HMO requirement.

we are accidental landlords somehow have to look into this complicated HMO issue. Let’s see how it rolls.. 

if we want the property to be vacant on exchange, then most likely to wait until end of Oct. 

user1977

GemmaZE said:

Lover_of_Lycra said:

GemmaZE said:

Totally agree. It’s lots of risks and leverage if not for good enough profit. 

Stupid question - If the contract is signed with 4 ppl all together ( not individually), is this still classified as HMO?  

As i saw on HMO application form required “The Licence Holder must provide each of the occupiers of the house with a written statement of the terms and conditions on which they occupy the house (e.g. a tenancy or licence agreement). The licence holder must declare at the point “.

If the 4 people are unrelated then most likely yes, it will still be HMO. 

we are accidental landlords

This is extending the already dubious term even further, if it now includes people opting to buy a tenanted property!

elsien

You’re not an accidental landlord when you are choosing to buy a tenanted property with a BTL mortgage. 

Whatever the long term plan you will be running a business, with all the implications that that involves. 

And as has already been mentioned several times, there are absolutely no guarantees that the property will be empty by the end of October.

wilfred30

GemmaZE said:

Lover_of_Lycra said:

GemmaZE said:

Totally agree. It’s lots of risks and leverage if not for good enough profit. 

Stupid question - If the contract is signed with 4 ppl all together ( not individually), is this still classified as HMO?  

As i saw on HMO application form required “The Licence Holder must provide each of the occupiers of the house with a written statement of the terms and conditions on which they occupy the house (e.g. a tenancy or licence agreement). The licence holder must declare at the point “.

If the 4 people are unrelated then most likely yes, it will still be HMO. 

Thanks a lot. Does it mean we would need 4 separate contracts per Council’s HMO requirement.

we are accidental landlords somehow have to look into this complicated HMO issue. Let’s see how it rolls.. 

if we want the property to be vacant on exchange, then most likely to wait until end of Oct. 

Good grief!  You still seem to be under the illusion that getting rid of the current tenants at the end of October is a done deal just because they've been given a Section 21, when it is nothing of the sort.

GemmaZE

wilfred30 said:

GemmaZE said:

Lover_of_Lycra said:

GemmaZE said:

Totally agree. It’s lots of risks and leverage if not for good enough profit. 

Stupid question - If the contract is signed with 4 ppl all together ( not individually), is this still classified as HMO?  

As i saw on HMO application form required “The Licence Holder must provide each of the occupiers of the house with a written statement of the terms and conditions on which they occupy the house (e.g. a tenancy or licence agreement). The licence
holder must declare at the point “.

If the 4 people are unrelated then most likely yes, it will still be HMO. 

Thanks a lot. Does it mean we would need 4 separate contracts per Council’s HMO requirement.

we are accidental landlords somehow have to look into this complicated HMO issue. Let’s see how it rolls.. 

if we want the property to be vacant on exchange, then most likely to wait until end of Oct. 

Good grief!  You still seem to be under the illusion that getting rid of the current tenants at the end of October is a done deal just because they've been given a Section 21, when it is nothing of the sort.

Thanks a lot for your advice.

I certainly know where you are coming from. This is the hope , and worst comes to worse we pull out before exchange if the property is not vacant.

its worry for the vendor rather than us…
We will certainly keep eyes on the market in the mean time. 

[Deleted User]

GemmaZE said:

Lover_of_Lycra said:

GemmaZE said:

Totally agree. It’s lots of risks and leverage if not for good enough profit. 

Stupid question - If the contract is signed with 4 ppl all together ( not individually), is this still classified as HMO?  

As i saw on HMO application form required “The Licence Holder must provide each of the occupiers of the house with a written statement of the terms and conditions on which they occupy the house (e.g. a tenancy or licence agreement). The licence holder must declare at the point “.

If the 4 people are unrelated then most likely yes, it will still be HMO. 

Thanks a lot. Does it mean we would need 4 separate contracts per Council’s HMO requirement.

we are accidental landlords somehow have to look into this complicated HMO issue. Let’s see how it rolls.. 

if we want the property to be vacant on exchange, then most likely to wait until end of Oct. 

I can’t see that you couldn’t have 4 unrelated people on one joint tenancy agreement it’s just that you’d need to make sure all 4 people had a copy of the joint agreement. 

Individual or joint, it doesn’t really matter. If you buy this property with the tenants in-situ their contract(s) will simply continue. A change of ownership doesn’t end the existing tenancy and mean a new contract(s) has to be signed. You would however, have to inform that you are their new landlord if you buy the property. 

Based on what you have posted I would not proceed with this purchase. You seem a little out of your depth in terms of managing a HMO and you still seem to think the tenants leaving in October is a done deal. 

GemmaZE

If the tenants leave before the contract end date ( end of Oct ), sounds like 3 out of 4 already found a place, The house is left empty.

If this is the case, officially their contract hasn’t ended yet, do you see any potential issues of exchange before official contract end date ? 

elsien

They could move back in, theoretically, while still in contract.  

Presumably they don’t want to be paying rent on two places, so could they and the  current landlord agree a mutual early surrender before you exchange? 

You also need to consider whether, when you get new tenants, you are able to view it as a business rather than your future home. You are setting yourself up for a lot of stress if you can’t.