BTL Mortgage Issue - Advice Please

[Nic1]

Evening
Currently trying to remortgage from a residential to BTL mortgage. All was looking well to the point where an mortgage offer was received. At the same time, the legal/solicitor side of things has stated an issue with the tenancy agreement, this being a non assured agreement.
Trying to get my head round the fundamental issue with this? Nearly half way though the 12months, no issues with rent, what is the issue with this agreement when trying to secure a new mortgage?

Thoughts and advice greatly appreciated.

 

[Longterminvestor]

Can you help this member @Nicholas Wallwork

 

[PostBrexitInvestor]

I think an assured agreement means you can basically give the tenants notice after their fixed term has expired and take back the property, vacant possession.

 

[FWL]

I think you need to take advice on this one - there are a lot of specialist lenders out there.

 

[Nicholas Wallwork]

Evening
Currently trying to remortgage from a residential to BTL mortgage. All was looking well to the point where an mortgage offer was received. At the same time, the legal/solicitor side of things has stated an issue with the tenancy agreement, this being a non assured agreement.
Trying to get my head round the fundamental issue with this? Nearly half way though the 12months, no issues with rent, what is the issue with this agreement when trying to secure a new mortgage?

Thoughts and advice greatly appreciated.

Would the tenant not be happy to sign a new agreement if you approached them with the problem?

Also then definitely a better mortgage broker who can advise when these tricky problems come up.

I’ll DM you an introduction to an excellent broker we work with if that helps


Sent from my iPhone using Property Forum

 

[PostBrexitInvestor]

Hi @Nicholas Wallwork

I am intrigued about the issue with the "non assured" tenancy agreement - could you explain why this would hold up a new mortgage?

 

[roxanalinda]

Assured shorthold tenancy agreement (AST) is the usual common type of contract used by landlords to let residential lands to private renters. ASTs are typically provided for 6 months but can be for longer. After this first agreed time, the landlord can evict the tenant without a legal reason.

 

[Longterminvestor]

How does these tie in with the withdrawal of section 21 notices? The right to evict for no reason.

 

[bellasusan]

I got the ideas from various resources and took professional help in property related issue.You take help from home buyers.

 

[FWL]

Hi @Nic1

I am interested to learn how you got on with your issue - did you manage to resolve it?

Some how I dont think you will be the only BTL investor facing such challenges in the future.