ScoobyDoo69

iTrader: (17)

Hey all,

My brother a few years ago purchased a home under one of the part buy schemes. He has bought and has a mortgage for 75% of the property, and he has (well had) 10 years to pay back the existing 25%.
He does not pay rent or anything of that kinda on the remaining 25%. When he is ready to pay it back or the 10 years expires, he has to pay 25% of that time's value back.

So my question is, if he wished to rent out/let the property, can he - legally?

Any advise is welcome, thanks.

njkmrs

I think he would have to get permission from whoever owns the 25% and he probably cant offer more than 6 month at a time Tenancy Agreements ,in case anything happens and the property needed to be sold by .IMO.

Mus

iTrader: (2)

im assuming he has bought it from a housing association there all crooks by the way
he will need to let them know, he also needs to let his bank know and he might even remain on the same intrest rate and lastly as well as the house insurance

ScoobyDoo69

iTrader: (17)

Nope not from housing association. Persimmon homes, similar to Barrat homes and all those doing part buys.

cookstar

iTrader: (6)

I'd be very surprised if there was any objection at all from the part owners, no doubt just a letter confirming your intentions.

Who is your mortgage lender?

ScoobyDoo69

iTrader: (17)

He is with Halifax

Thanks

ScoobyDoo69

iTrader: (17)

Any more thoughts on this? Thanks

Mus

iTrader: (2)

once his done all the above then you need to find an agent thats regulated by ARLA, book your epc(energry performance certificate) if he has gas heating you will need a gas certificate.
your epc shouldnt cost more than 45 quid and gas cert no more than 55 quid. arrange it your self as most agents make a drink.

haggle with an agent dont just go for the cheapest or dont go for the agent that has the most rental property. invite a few agents round and the ones your comfortable with give them the go ahead.

anymore questions

fivetide

iTrader: (1)

I let a flat out and he will need permission to let from the mortgage provider to start with plus the EPC and all the gas/electrical safety certificates.

Oh and to get that permission, usually rent has to cover the interest on the mortgage x2

I wouldn't be too fussed about an agent. You can get decent contracts online and check references yourself. If an agent finds someone they will charge a fair bit of the rent each month but if the tenent doesn't pay/smashes the place up, then they just say "the references checked out". Given you can do that yourself and take as much risk I save that commission!

Advertise through the local rag and choose someone who seems to fit in well and acts the part.

5t.

ScoobyDoo69

iTrader: (17)

Awesome. There is an EPC already available for the property as this was done when he was considering selling it.

To be honest he wants to rent it to a family friend, so I am not sure an agent is required so long as a decent contract is done?

thanks for your help so far guys, it is much appreciated

cookstar

iTrader: (6)

One other thing to remember, which generally remains unsaid in these threads, is you need to make sure that any soft furnishings comply with fire regs and labelled accordingly.

ScoobyDoo69

iTrader: (17)

That is good advise! I am not sure if he is leaving it furnished so that is a good point. Thank you for that.

Mus

iTrader: (2)

make sure you get an inventory done by a decent company.