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  • Buy-to-Let

    BTL mortgage with tenant in situ

    Dear all

    Want to buy a property at 70k on BTL mortgage. The current tenant has a year contract started in April. Can I get a BTL mortgage for this house with the tenant in it? If not, is there a way around it?

    I am happy for the tenant to remain if that is possible

    All advice welcome

    Thanks

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    As long as they are on ast, and have been referenced and proof of payment of rent then shouldn't be an issue, probably lower risk for lender as they know rent being paid so not speculating on rental value etc.

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    Slowly working towards financial freedom


    Yes you can, just a standard 25% or 15% mortgage you require? or whichever % you choose for the BTL. From the conveyance side should be all normal just a case of making sure you check the tenant legalities etc. 

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    Yes its a BTL mortgage so the lender  expects you to have a tenant

    The fact that one is in there from day 1 is not really an issue

    Your  solicitor will guide you through the legalities

    I would issue my own AST to commence on completion

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    Jonathan Clarke. http://www.buytoletmk.com


    Hi JC,

    Can I just ask why you issue your own AST @ completion?.

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    I issue my own AST because

    • I want my name on it as landlord
    • I want it to contain the clauses I've selected including any required by my mortgage or insurance
    • I want to protect the deposit with my preferred deposit protection scheme and for this to be referenced in the AST
    • I want to reissue the statutory documentation and get it signed for
    • I want the tenant and I to have clarity over who owns what on the inventory
    • I want the rent payment date to be clear


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    Would you need to issue a brand new contract eg 6 months or could you do it periodic on the new terms as they have already been there?

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    New six months tenancy. It can go periodic after that if both parties are happy with that

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    Ok, thanks Alison. I also thought it could be useful for the OP so didn't mind asking the question for myself.

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    Yes Alison has perfectly outlined the reasons for issuing ones own AST

    Its all about separating the old from the new

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    Jonathan Clarke. http://www.buytoletmk.com

    Excuse my ignorance, what does AST stand for?

    Thanks

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