10:41 AM, 3rd December 2014, About 11 years ago 4
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I currently own a Buy-to-Let house in which I have a tenant. This property has a BTL mortgage on it. I have just been offered the option to purchase a more attractive property in the same village and wish to do this, also on a BTL basis. However, I will need to sell the current property. I am able to port my existing BTL loan and will not need to change the size of the loan.
As the houses are similar in size, my current tenant is very happy to move to the new house for the remainder of his tenancy.
My question is, how can I sell one BTL property to purchase a second one and move the tenant between them? What sorts of issues will I come up against with the lender (assuming that the new property is acceptable to them as security for the mortgage)?
Many Thanks
JB
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Member Since February 2011 - Comments: 3444 - Articles: 286
10:44 AM, 3rd December 2014, About 11 years ago
Hi JB,
I am not sure I can initially think of a problem that the new lender might have assuming that you will have a new tenancy drawn up and signed with the existing tenants.
And then a new deposit, inventory etc. I think the fact that they are already your tenants is a curve ball.
Anthony Endsor
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Member Since July 2013 - Comments: 192
10:55 AM, 3rd December 2014, About 11 years ago
I can’t see a problem with it myself. In fact it’s something I have thought about doing but not actually done as yet.
As long as the tenant remains adequate security for the lender, and the property values up to the required amount, you should be ok.
Ian Ringrose
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Member Since July 2013 - Comments: 560
13:04 PM, 3rd December 2014, About 11 years ago
The tenant will need a new AST, therefore you will not be able to use a S21 for at least 6 months. Likewise the deposit will need to be protected.
But what if the tenant decides to refuse to move on the day of completion, after you have exchanged contracts…..
Jonathan Clarke
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Member Since June 2013 - Comments: 568
20:59 PM, 3rd December 2014, About 11 years ago
This can be done yes.
The lender wont mind. It doesn`t really affect them. The tenants will sign a doc for the solicitors so its sold with vacant possession to satisfy the new purchasers. Then on the allocated day load their van up with everything then instruct the solicitor to exchange and complete at the same time and just wait an hour while the monies get transferred and then start the new tenancy on the new house and give them the keys and they can start unloading. Job done