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Sitting tenants want to stay

(17 Posts)
Lemond1fficult Wed 11-Oct-17 15:40:26

I'm buying a house to do up with a view to living in it eventually.

The sitting tenants have requested that they be allowed to rent from me for a while, if I'm not taking immediate occupancy (it's a small town so everyone knows everyone else's business!)

In theory, I'm not opposed, so long as I can do it legally. However, my mortgage won't be a buy-to-let, and I can't afford to pay the 25% I'd need right now to make it a buy-to-let.

Has anyone else been in a similar situation and successfully got permission to do this? All advice gratefully received.

ijustwannadance Wed 11-Oct-17 15:43:26

Do you eant to be a landlord and potentially have issues getting them out in future?
If you can't afford it then say no. You don't owe them a home.

Lemond1fficult Wed 11-Oct-17 15:50:25

To be honest, I really don't mind taking over the landlord contract for a while, as they use an agent currently, and I know the rent covers the mortgage.

I'm just interested to know if there's a way to make this happen legally with a normal mortgage.

Iamagreyhoundhearmeroar Wed 11-Oct-17 15:51:11

What’s your time frame for moving in? Surely you’re planning on either living in it or renting it out?

5rivers7hills Wed 11-Oct-17 16:07:20

You can not do this legally with a residential mortgage because you need vacant possession, which you wont achieve.

I can't see a solicitor proceeding on this basis.

Lemond1fficult Wed 11-Oct-17 16:07:36

I'd be looking at moving in within a year.

SandLand Wed 11-Oct-17 16:15:04

No, no no. Don't do it.
Exchange aftervthe tenants have moved out, and youve checked the state of the house. Take vacant posession, do it up and live there.

Stringofpearls Wed 11-Oct-17 16:17:30

Yes, if its a short amount of time and for a specific reason tather than long term money making you just need to ask your bank for a permission letter. We did this and had no problems, as long as they know an end date. You will also need to declare the tax, but will be liable for only anything above the interest rate payment part of your mortgage as the interest part is tax free.

PersianCatLady Wed 11-Oct-17 16:18:38

If you have a usual residential mortgage then you would need permission from the mortgage company to rent the house out.

Lemond1fficult Wed 11-Oct-17 16:44:36

Thanks @Stringofpearls. Do you mind me asking the circumstances? Were you renting to tenants who were already living there? Or did you take possession and then rent it out?

AdalindSchade Wed 11-Oct-17 16:45:30

Do you understand the risk if they don't move out at the end of the tenancy period?

cestlavielife Wed 11-Oct-17 17:53:11

I don't think the interest part is tax free any more? Get advice !

rwalker Wed 11-Oct-17 18:02:20

i,d say no you need landlord insurance your mortgage company will need to know .On the practical side you need deposit then you have to register that and things like gas safety certdificate and finally if they know what they are doing could take you months and cost you £1000's to get them out

specialsubject Wed 11-Oct-17 18:47:52

You will become their landlord, with all the legal responsibilities and risks involved. Specialist insurances, right to rent checks etc etc.

Permission to let is important but is the least of your worries.

Stringofpearls Wed 11-Oct-17 19:33:20

Hi op, we rented out once owned as we had to move away for a while, however I understand that this is the case either way. Of course it would very to check with your bank. Also check with the letting agency currently being used as they often know all the ins and outs of the specific rental contract. smile

5rivers7hills Wed 11-Oct-17 20:04:02

@Stringofpearls getting permission to let once you have already lived in the property is really different to trying to keep sitting tenants on a resi mortgage therefore not aciving vacant posessiom

Lemond1fficult Wed 11-Oct-17 20:31:36

Thanks @Stringofpearls and everyone else for your opinions and advice.

I had a feeling it may be more trouble to me than it's worth. But I thought I'd check the feasibility before giving them a flat 'no', as I wouldn't be inhabiting it fully for a while anyway.

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