16:19 PM, 12th October 2022, About 3 years ago 5
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Hello, I am currently re-mortgaging three buy to let mortgages. Mortgage offers have been made, but the conveyancing solicitor appointed by the mortgage company has stated, that because the rent is now different to when the Tenancy Agreement were first issued, then the Tenancy Agreements have expired.
They are insisting that new Tenancy Agreements showing the current rent paid must be issued.
I have never heard of this.
Can anyone enlighten me?
Thanks,
Lesley
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Member Since July 2013 - Comments: 72
20:16 PM, 12th October 2022, About 3 years ago
I recently remortgaged a couple of properties. I am in Scotland. The original tenancies were done on the Scottish Model Tenancy agreement. Rents had increased. I had to provide the underwriter with a copy of the original tenancy agreement, the rent increase notice and a recent bank statement showing the increased rent going into my account. The solicitor also asked for these, however when I queried why due to the fact they had been supplied to the underwriter, they were happy to engage with him regarding it.
SteveFowkes
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Member Since February 2021 - Comments: 104
11:05 AM, 13th October 2022, About 3 years ago
Your solicitor does not know rent law
Graham Bowcock
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Member Since January 2020 - Comments: 553
11:10 AM, 13th October 2022, About 3 years ago
It’s not necessary to issue a new agreeement, but hoprefully you have a memorandum sigedn by landlord and tenant confirming the new rent – this should suffice, although most lenders/conveyancers aren’t too bothered as long as there is an original agreement in place.
David Smith
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Member Since June 2022 - Comments: 111
12:11 PM, 13th October 2022, About 3 years ago
The solicitor is incorrect you can increase the rent on an existing contract as long as it is agreed in writing by both parties.
Edwin Cowper
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Member Since July 2013 - Comments: 89
12:47 PM, 15th October 2022, About 3 years ago
I suspect that the reason for concern is not whether a rent is agreed, but whether the tenancy continues under the old agreement or whether there is a new tenancy.
The form of agreement of the new rent may make that clear. If it doesn’t you could need a new agreement. And if you need that then you may need to comply/have complied with the requirements for a new tenancy.
The lender’s lawyer is very reasonably considering what his client would need if it has to call in its loan and require the tenant to leave and be successful in court if necessary,
Suggest you get a good lawyer. Worth the money. Some of the advice I see on here is unbelievable, but I don’t always respond. Bear in mind if a lawyer gives you wrong advice you can claim. If you get it here you can’t. I must also say that there are a lot of good posts. It depends who is doing the posting.