Let to buy from sadly deceased tenant?

by Readers Question

14:29 PM, 18th July 2019
About a month ago

Let to buy from sadly deceased tenant?

Make Text Bigger
Let to buy from sadly deceased tenant?

Arranged this loan over a year ago and have rented the property until recently, but sadly our elderly tenant died.

The property was found to be in excellent condition, so much so, that we are thinking of taking it over as a second home and to cease any future rentals.

We have always kept all mortgage payments up to date, but am slightly concerned even though we plan to stay no more than a few days a month, as we have a main residence elsewhere, that we may be in breach of our mortgage conditions.

Obviously, council tax will be put in our names, but wonder how far a mortgage lender would go to establish who is actually resident or would they even be concerned.

Any comments or advice would be very much appreciated.

James



Comments

Neil Patterson

15:29 PM, 18th July 2019
About a month ago

Hi James,

All I can say is it is better to get consent from the lender rather than them find out as you will be breaking your mortgage contract. I can't tell you whether they will find out or not.

The lender will now consider this a regulated consumer mortgage, which will be of greater concern to them than the interest rate as general residential loans are on a lower rate, but not always. It is likely they will give consent for 1 or 2 years but there is no guarantee I am afraid.

Mark Alexander

16:30 PM, 18th July 2019
About a month ago

I don’t know whether mortgages on second homes are regulated or not, but I do agree with Neil in regards to making the mortgage lender aware of your intentions.

The alternative might be to advertise the property to let at a very high rent, and until it is let (if it ever is) spend a few days every month there to make sure everything is OK and that your insurance remains valid.

JJ

15:01 PM, 22nd July 2019
About a month ago

You may wish to consider asking your lender whether you can let it out as a holiday let and also whether your property would satisfy the criteria.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

New Paragon 80% BTL products for individuals Ltd co and LLPs

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More