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  • FIRST POST
    • Ojb
    • By Ojb 7th Sep 18, 7:13 PM
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    Ojb
    Buying residential property, can I keep buy to let?
    • #1
    • 7th Sep 18, 7:13 PM
    Buying residential property, can I keep buy to let? 7th Sep 18 at 7:13 PM
    After moving back home for a few years and letting my flat I now want to buy a small freehold house to live in

    My tenant doesn't want to move but I'm finding it impossible to sell to an investor in the current market. So if I sell she will have to go.
    I have no pension plan and had thought the flat could replace that.

    However I am finding it difficult to refinance the flat in order to release the equity to buy the house. I would also have to find the 3% stamp tax

    So based on the above should I try and keep the flat or sell it, no longer be a landlord and have much more equity in the house I intend to buy?
Page 2
    • Crashy Time
    • By Crashy Time 8th Sep 18, 4:01 PM
    • 6,519 Posts
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    Crashy Time
    Ok well I have a full time job with income between 25-33k a year. The buy to let flat is worth 210k with a mortgage of 83k. I am looking to buy a house between 200-250k.
    I though eviction is 2 months?
    Originally posted by Ojb

    I thought you were finding it impossible to sell?
    • Ojb
    • By Ojb 8th Sep 18, 6:54 PM
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    Ojb
    Impossible to sell with tenant in situ. It is possible I can remortgage but by doing this and using the money as a deposit on another property my budget is limited to about 200k.
    If by the time I retired this flat had no mortgage and I had the whole income then I dont see why it couldn't match a pension?
    • AlexMac
    • By AlexMac 8th Sep 18, 7:38 PM
    • 2,144 Posts
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    AlexMac
    You won't know til you speak to her.

    I just managed a successful end to a tenancy; tenant was on a SPT, and had been there 7+ years, but while she didn't actively want to leave, her circumstances were such that leaving was tolerable for her.

    BUT,
    - I gave her 6 months' informal warning (in writing, then via a chat) well in advance of the statutory 2 months; in the end she left after 5

    - I'd treated her very well; soft rent, reassurance of no deposit retention, mended or replaced stuff like washing machines as soon as they bust...

    And she reciprocated. On the other hand I also helped another past former tenant with the whole court/baliff charade to help her get a Council House- which was a very good move for her and her family...

    How good have you been? As on balance, it seems your best move is to sell

    Surely most evictions don't take this long, most people are decent and will honour the 2 months notice?
    Originally posted by Ojb
    • Crashy Time
    • By Crashy Time 8th Sep 18, 9:06 PM
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    Crashy Time
    [QUOTE=Ojb;74765298]Impossible to sell with tenant in situ. It is possible I can remortgage but by doing this and using the money as a deposit on another property my budget is limited to about 200k.
    If by the time I retired this flat had no mortgage and I had the whole income then I dont see why it couldn't match a pension?[/QUOTE]


    The tenant could move out.
    • Ojb
    • By Ojb 8th Sep 18, 9:25 PM
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    Ojb
    Pretty good I'd say rent is low and any problems have been sorted out straight away.
    • Ojb
    • By Ojb 9th Sep 18, 12:48 PM
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    Ojb
    So I have done a property search in my area and If I keep my flat I will most likely be compromising on what else I can purchase for myself..my budget would be about 200-210 and this buys a one or two bedroom flat. If I seek my existing flat and take the equity then my budget is at least 230 k which affords a one bed house with garden. Im nearly 38 and starting to dislike the idea of flats as I get older. Houses are more attractive i think with own doors and gardens.
    • Crashy Time
    • By Crashy Time 9th Sep 18, 6:39 PM
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    Crashy Time
    So I have done a property search in my area and If I keep my flat I will most likely be compromising on what else I can purchase for myself..my budget would be about 200-210 and this buys a one or two bedroom flat. If I seek my existing flat and take the equity then my budget is at least 230 k which affords a one bed house with garden. Im nearly 38 and starting to dislike the idea of flats as I get older. Houses are more attractive i think with own doors and gardens.
    Originally posted by Ojb

    Best bet would be offer the tenant a rent cut if they will let people view, tell them that unfortunately you are selling it but they can stay until it sells, and see how much interest you get. You don`t want to get rid of the tenant and then find there are no buyers at your price IMO.
    • Computer Beginner
    • By Computer Beginner 9th Sep 18, 7:41 PM
    • 269 Posts
    • 138 Thanks
    Computer Beginner

    On the other hand I also helped another past former tenant with the whole court/bailiff charade to help her get a Council House- which was a very good move for her and her family...
    ll
    Originally posted by AlexMac
    That was good of you.
    (I think the subtle way you phrased this has been missed by the other posters... )
    • Ojb
    • By Ojb 9th Sep 18, 8:36 PM
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    Ojb
    Happy to offer tenant free rent for final two months so long as she goes on the agreed date!!!!
    • HampshireH
    • By HampshireH 9th Sep 18, 8:41 PM
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    HampshireH
    Assume you mean you will take her rent for the final 2 months and reimburse it after she has left.....rather than free rent for 2 months.
    • Comms69
    • By Comms69 10th Sep 18, 10:14 AM
    • 4,416 Posts
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    Comms69
    Happy to offer tenant free rent for final two months so long as she goes on the agreed date!!!!
    Originally posted by Ojb
    You cannot guarantee that.


    Only two entities can end a tenancy - tenant or court. You cannot.


    You can offer a mutual surrender, by paying moving costs or something similar; but the tenant is under no obligation to accept
    • Ojb
    • By Ojb 10th Sep 18, 11:41 AM
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    Ojb
    Makes me wonder why anybody rents out property when you can't get it back for 6-9 months if your situation changes.
    • HampshireH
    • By HampshireH 10th Sep 18, 12:02 PM
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    HampshireH
    ...... but your would have known that when you became a landlord as it would have been part of your business and financial planning.

    Too many people rent out their properties without actually seeing the bigger picture.

    Do you currently comply with all your legal requirements as a landlord in order to be able to serve a valid notice on your tenants?
    • Ojb
    • By Ojb 10th Sep 18, 7:15 PM
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    Ojb
    Which requirements do I need to meet to serve a valid notice?
    • Pixie5740
    • By Pixie5740 10th Sep 18, 7:27 PM
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    Pixie5740
    Which requirements do I need to meet to serve a valid notice?
    Originally posted by Ojb
    Well if you'd read the information in the link provided earlier you would know.
    • Crashy Time
    • By Crashy Time 10th Sep 18, 10:30 PM
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    Crashy Time
    Makes me wonder why anybody rents out property when you can't get it back for 6-9 months if your situation changes.
    Originally posted by Ojb

    Because most tenants pay their rent and leave on the agreed date? Renting out property worked well while house prices were rising, but the model breaks down as prices fall and rates start rising instead. Many may find themselves without a tenant and unable to sell as the effects of Brexit work their way through the economy.
    • Crashy Time
    • By Crashy Time 14th Sep 18, 7:17 PM
    • 6,519 Posts
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    Crashy Time
    Which requirements do I need to meet to serve a valid notice?
    Originally posted by Ojb

    I think you need to protect the deposit.
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