Selling a house that's currently rented out

pinkshoes

Would the lender agree to the BTL mortgage now IF the rent was raised to the market level?

Also, have you tried alternative brokers for BTL mortgages?

Would your relatives be both willing and able to pay a rent that is £450 a month more?

Does the relative have any money they could lend you to pay off the CCJ so that you could get a BTL mortgage?

You are probably best negotiating with the relative e.g. they can continue paying the below market rent, but they need to allow viewings to take place, and then move out with 2 months notice when an exchange date is imminent (or before if they wish) otherwise you will need to serve an S21 eviction notice immediately. 

I assume you complied with all rental laws?

gazfocus

MattMattMattUK said:

gazfocus said:

Sea_Shell said:

gazfocus said:

Sea_Shell said:

Boat_to_Bolivia said:

gazfocus said:

Also, should have mentioned, they have made it perfectly clear that they are no going to move to 'just anything' and are being very specific about what they're looking for.

Seems you have a fight on your hands. Very sorry for you OP, after doing your relatives a good deed, they are not going to leave quietly. All the best.

* OP - What did you 'promise' them when the tenancy started, even if only verbal or even just inferred?   Have they a right to feel mislead too?

Nothing was promised as such. They said they would rent the house for as long as they were able, and I said we'd rent it to them for as long as I can. I explained to them about the consent to let but none of us expected it to not be renewed after just 12 months.

On the upside, it could have been worse...they could have not paid their rent!!!


Hopefully they won't now withhold rent to enable them to save for their next place.    Unless of course you are prepared to offer them a "sweetener" of a further discount or payment holiday to help them on their way.

That is indeed a concern that I've already discussed with my wife, though I sincerely hope that doesn't happen otherwise the house is more likely to be repossessed due to mortgage arrears than anything else.

Are these family members reasonable people? Reading between the lines I am getting the impression that they are at the other end of the scale and will happily screw you over for short term gain.

I'd like to think they are reasonable but then I like to see the best in everyone. I do get the feeling though that they are going to make selling the house very difficult. I fully understand that at the moment emotions are running high though and I'm genuinely hoping we can come to an amicable solution.

gazfocus

pinkshoes said:

Would the lender agree to the BTL mortgage now IF the rent was raised to the market level?

Also, have you tried alternative brokers for BTL mortgages?

Would your relatives be both willing and able to pay a rent that is £450 a month more?

Does the relative have any money they could lend you to pay off the CCJ so that you could get a BTL mortgage?

You are probably best negotiating with the relative e.g. they can continue paying the below market rent, but they need to allow viewings to take place, and then move out with 2 months notice when an exchange date is imminent (or before if they wish) otherwise you will need to serve an S21 eviction notice immediately. 

I assume you complied with all rental laws?

Our currently lender hasn't refused a BTL mortgage to date. I've not told them how much rent is being paid, etc. 

The mortgage adviser I've been speaking to is a whole of market adviser, so I'm hopeful that if there are any options she can find them.

Not sure whether the relatives have any money spare to help with the CCJ but can definitely pose the question. 

Yes, rental laws have all been followed to the T.

theartfullodger

Gycraig said:

theartfullodger said:

Yet another example of why not to to rent to friends or relatives.

Why is it ? Scenario would be exactly the same asking any tenant to move out after a year 

Less pain than evicting a friend or relative.

gazfocus

Just thought I'd post an update. 

I spoke to a whole of market broker yesterday who confirmed that essentially, in order to get a BTL mortgage, the monthly rent would need to increase significantly, and that was if they managed to find me a BTL mortgage at all.

I then spoke to my mortgage lender for clarity on timescales and they told me that they expected me to serve notice on the family members immediately, and when I pushed for a timescale on when they expect the tenants to be out, the lady on the phone said 'a fair timeframe would be 3 months but the legal minimum is 2 months'. I said I didn't feel that any of this is fair, but it is what it is. 

Passed this info on to our family members and they've reluctantly accepted it's happening and now at least they have a deadline. I have asked them to co-operate with estate agents and viewings but I don't know how that's going to pan out yet.

_Penny_Dreadful

Passing on the info is all very well but have you formally issued the tenants with a Section 21 notice? 

propertyrental

gazfocus said:

....

Passed this info on to our family members and they've reluctantly accepted it's happening and now at least they have a deadline. ...

It does not sound like it. Unless you have served them a (valid) S21 Notice, there is no deadline.

S21 checklist (Is a S21 valid?)

gazfocus

_Penny_Dreadful said:

Passing on the info is all very well but have you formally issued the tenants with a Section 21 notice? 

I was only given the info yesterday so I'm drafting the notice today to issue them before the end of January which will give them 3 full months.

Sea_Shell

Bear in mind that they might also come looking here for advice from their POV.

_Penny_Dreadful

gazfocus said:

_Penny_Dreadful said:

Passing on the info is all very well but have you formally issued the tenants with a Section 21 notice? 

I was only given the info yesterday so I'm drafting the notice today to issue them before the end of January which will give them 3 full months.

Drafting notice?  All you need to do is fill in form 6a and post it, get proof of postage of course.  I don't know why you'd put 3 months notice on the form when only 2 is required.  It's not like the Section 21 on its own is enough to end the tenancy anyway.  Should the tenants choose to remain in the property you'll need to go to court for a possession order so giving 3 months notice instead of 2 just delays this by a further month and time is not on your side here.

https://www.gov.uk/guidance/assured-tenancy-forms#form-6a