Buying with existing lease

D

Davert

New Member
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5
Hi,
I am just about to purchase our first investment property. The house is currently let to the local council since 2016 and that lease is up in December 2021. Can anyone give me an idea how this would normally proceed and any pitfalls to watch out for.
I will take ownership before the current lease ends and I have spoken to the council about entering into a long term lease of the property.
I'm just a bit unsure of how the existing tenant works in this situation.
Thanks in advance
D
 
On the mortgage, have you already got approval with the sitting tenants in place?

I'll leave others to advise on the lease to council part. Do you know exactly what type of agreement it is as there are several different types?
 
Have approval
I've seen the current 5 year lease which is termed as tenancy with no availability control for housing authority at end of tenancy.
I have verbal agreement with the council that they will take a 20 year lease when we purchase.
 
Davert said:
Have approval
I've seen the current 5 year lease which is termed as tenancy with no availability control for housing authority at end of tenancy.
I have verbal agreement with the council that they will take a 20 year lease when we purchase.
Click to expand...
Get councils agreement in writing if you are basing your purchase on this factor.
 
Davert said:
Have approval
I've seen the current 5 year lease which is termed as tenancy with no availability control for housing authority at end of tenancy.
I have verbal agreement with the council that they will take a 20 year lease when we purchase.
Click to expand...

I'd wonder is vendor selling due to problems with occupants?
 
The Horseman said:
Get councils agreement in writing if you are basing your purchase on this factor.
Click to expand...
This is my next step this week, I'll be trying to get something solid in place before I sign for the property.
My main concern is buying the property with the existing tenants still in place. Was wondering if anyone had a similar experience. I'm hoping the council will be willing to leave the current tenant in place and renew a new lease.
 
Davert said:
This is my next step this week, I'll be trying to get something solid in place before I sign for the property.
My main concern is buying the property with the existing tenants still in place. Was wondering if anyone had a similar experience. I'm hoping the council will be willing to leave the current tenant in place and renew a new lease.
Click to expand...
Is the tenant on RAS or HAP if yes you are still the landlord. If you are leasing long term to council (10 or 20 yr lease) you have no choice who goes into property but you are not landlord council is.
 
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