Is Buy to Let the answer?
There’s an excellent column on The Guardian website about an interesting scenario regarding a purchaser seeking to buy a property which has sitting tenants.
He or she is a first time buyer and wishes to buy a flat to live in but the owner has agreed a new 12-month lease with his tenants.
The first time buyer still wants to go ahead with the purchase but wonders whether they would need a Buy to Let mortgage or could simply have a residential one.
According to the column, the simple answer is that the buyer would need a Buy to Let mortgage if tenants are still there whereas a standard residential mortgage would be fine if it was a ‘vacant completion’.
However, there is a warning about issues regarding other people living or cohabiting at the property as well as potential banana skins in the timing of contracts if tenants are to be given notice to leave so a standard residential mortgage can be secured.
It’s an intriguing and slightly unusual case which is well worth a read at