First time landlord : Buying a council tenanted property
I am first time landlord looking to buy freehold property around Luton. The property is currently rented to young lady (aged 25-30) with her 2 children aged below 10. As far as I am aware, she is on council benefit but the property is rented on basis of periodic tenancy.
So far I’ve managed to gather following information; 3 tenants changeovers in last 7 years, current tenant living there from 15th June 2013, rent is paid by housing benefit so can be slightly behind due to method of payment (every 4 weeks against PCM but I was made aware that its up to date now), deposit is with TDS, type of tenancy is Periodic Tenancy.
Could someone suggest what other information will I require before going ahead with this property?
Current landlord wants to sell this property tenanted only so will it be easy for me to replace the tenants by serving her 2 months’ notice (as per tenancy agreement) once I have keys of the property.
As mentioned this is my first BTL property so apologies if I am asking very basic questions.
Many thanks.
Rupang
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Member Since January 2011 - Comments: 12209 - Articles: 1408
5:28 PM, 22nd June 2015, About 11 years ago
Hi Rupang
I have to say, you’ve done very well qith your questions so far. Here’s an article on the subject about questions to ask when buying a tenanted property >>> https://www.property118.com/questions-ask-buying-tenanted-property/73290/ and as you will see you’ve already ticked several of the boxes.
Are you taking a mortgage to complete the purchase? If so you need to check that your lender will allow you to let to tenants in receipt of benefits. If the answer is no then you need to find another lender, this chap will be able to help you >>> https://www.property118.com/member/?id=1313
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Member Since July 2013 - Comments: 305
12:38 PM, 23rd June 2015, About 11 years ago
Why would you want to serve notice so quickly?
Member Since August 2013 - Comments: 7
12:46 PM, 23rd June 2015, About 11 years ago
Reply to the comment left by “Adrian Jones” at “23/06/2015 – 12:38“:
Adrian, I am bit concerned with Universal Credit system and with new government is not going to make it easy for council tenants as such mine. Having single mother with 2 young children, i just want to keep my options open so should i require her to vacate the property, I just want to know how difficult would it be?
Member Since July 2013 - Comments: 305
3:32 PM, 23rd June 2015, About 11 years ago
Hi Rupang,
If it was me I would see how it goes before making a decision. Not all HB tenants are bad ones.
Member Since January 2015 - Comments: 6
4:39 PM, 23rd June 2015, About 11 years ago
Reply to the comment left by “Adrian Jones” at “23/06/2015 – 15:32“:
I agree with Adrian that it is best to wait and watch. Not only that all HB are not bad tenant, but you may find it difficult to attract other type of tenants depending on property area.
Haver you done your due diligence about area, demand and type of tenant interested in your property?
There are some areas where there is high demand for Housing benefits client, but professional or students may not want to live. There is no point in removing HB tenant, if then you will find difficult to find other type of tenants.
Good luck with your first BTL.
Member Since August 2013 - Comments: 7
2:22 PM, 21st July 2015, About 11 years ago
We are going ahead with this purchase..can anyone recommend me a solicitor who is specialist in buy to let purchase with sitting council tenants?/
Member Since January 2011 - Comments: 12209 - Articles: 1408
2:26 PM, 21st July 2015, About 11 years ago
Reply to the comment left by “rupang shah” at “21/07/2015 – 14:22“:
Yes – see http://buytoletconveyancing.co.uk/
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