8:47 AM, 18th March 2016, About 6 years ago 6
I have a very good long term tenant, not one rent payment ever late, property kept well, always polite & easy to get along with, understanding and cooperative over maintenance etc.
He has a good steady job with reasonable salary, but his girlfriend, who wasn’t on the AST, has just moved out. She wasn’t contributing toward the rent, but he tells me she paid the utilities. Without her contribution, he would struggle to continue affording the rent, and although he doesn’t want to move out, has offered to.
We checked if he can get housing benefit, but he earns too much.
Now, I know I am within my rights to serve notice on him, and he would move out – but I don’t want to do that. What I need to know is how lowering his rent would impact upon my ability to remortgage the property in future, which I will definitely need to do?
On an earlier post on Property118, Neil Patterson defines the rental income assessment as being “The monthly rental income a property should achieve as assessed on a valuation survey” do lenders only look at that, or do they take the actual rental income into account too?
For the record, the lower rent would still be within market rates but only just, and I would be able to afford the maintenance, although would be making little profit. At the moment, property is mortgaged with a large BTL lender at 75% LTV with 3.54% interest rate, fixed until next year when I will need to remortgage.
Thanks for any advice.
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