Lending Merry-go-round – READERS QUESTION
I wonder if any of ‘s readers have experienced the same problems as I have in arranging a mortgage for a flat which is already occupied on a short term assured tenancy agreement.
Everything is in place and we had an offer from The Mortgage Works , then the problems started.
The Mortgage works offer is conditional on the tenants signing a new assured tenancy agreement
The vendors won’t let us approach the existing tenants .
The Mortgage Works then say that an undertaking from the solicitors that a new tenancy will be signed after completion is OK.
The solicitors then say that they can’t give that undertaking as they may not be able to persuade the tenants to sign.
The tenants in question have already paid a years rent in advance on which the balance and the deposit will be handed to us on completion so there is no question of them not paying.
The Mortgage Works say that they only usually lend on empty properties , not one with existing tenants..Has anybody obtained a mortgage from them on a tenanted property?.
Thanks in advance
A Briggs
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AWA All Wales Property Auction 4th to 7th Feb 2013
Member Since January 2011 - Comments: 12212 - Articles: 1408
7:41 PM, 8th February 2013, About 13 years ago
Hi Mary, that’s not my understanding of this case. If a tenant pays 6 months rent every 6 months my understanding of this case is the outcome may require landlords to protect and release monthly all but the first months rent. If that comes to pass it will be incredibly complicated to administer.