9:50 AM, 30th May 2013, About 8 years ago 11
My business partner and I are about to purchase our first buy to let property – a one bed flat in Southsea with a tenant in place.
We are keen for the tenant to stay on (he has indicated he is happy to) so what is the best way of handling deposits and AST’s in this situation?
The solicitor has advised that as long as some sort of AST is in place, the mortgage company will be happy.
The managing agent (who is also handling the sale) has told us that his deposit will not be returned due to extensive cleaning required (fairly dirty tenant who smokes). Our concern is that the tenant might struggle to find another deposit for us, when we buy the property.
Has any one had experience of this situation before? Although on the face of it this sounds less than ideal, we are happy to buy the flat in a ‘dirty’ state if the tenant is happy to stay, as he is paying good rent and is a reliable payer apparently.
Whenever he moves out, we have factored in around £4k refurb as it will need a new kitchen/carpets and redecoration of at least one room.
Our plan is to try to get a new 1 year AST in place prior to Exchange or completion, to minimse our risk and guarantee cashflow prior to a subsequent refurb in (for example) 12 month’s time. However we won’t have a date of commencement for this AST until a completion date is known so I am wondering how feasible this is?
Any other suggestions of how to minimise risk in this situation, prior to incurring cost of solicitor/IFA/surveyor would be appreciated.
Is it appropriate to ask the managing agent for records of payment history and any disputes?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|