BTL purchased from lender, how to proceed?

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  • BTL purchased from lender, how to proceed?

    I have just exchanged on a flat direct off lender from a BTL defaulter. The defaulter did not want to provide any help to the Lender so there are some holes in what exactly was paid rentwise etc.

    There is currently a tenant there with an AST from 2007 held over. I would appreceiate a little advice.

    1. Do I need to draw up a new tenancy agreement with the tenant? Does the old agreement hold any validity now that one party is gone?
    2. I am completing on Wednesday, if the tenant has paid the rent 1 month in advance, where do I stand on that?
    3. May sound stupid, but how do I prove to the tenant that I am the new owner? Do I take my registered title? Do I just get a LA and they sort this all out?

    Thanks.

  • #2
    I think I might have wanted some proof of an AST before parting with my cash. Do you have that proof.

    Yes, you need to enter into a new AST with you as landlord but AST is still valid for tenant until this time.
    Best bet would be to go visit tenant and introduce yourself taking proof of purchase, ask to see AST (if not already got it) and note rent date. Get new agreement ready to be signed using same rent due date.

    You could get a LA to sort this out but it will cost you ££££££££££'s and really you should learn the business yourself.



    Freedom at the point of zero............

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    • #3
      Originally posted by SusanHyde View Post
      1. Do I need to draw up a new tenancy agreement with the tenant? Does the old agreement hold any validity now that one party is gone?
      The old tenancy agreement is still valid, and you cannot make the tenant sign a new one.

      Originally posted by SusanHyde View Post
      2. I am completing on Wednesday, if the tenant has paid the rent 1 month in advance, where do I stand on that?
      The old landlord has the money. It should be recovered from the old landlord, along with any deposit paid.

      Originally posted by SusanHyde View Post
      3. May sound stupid, but how do I prove to the tenant that I am the new owner? Do I take my registered title? Do I just get a LA and they sort this all out?
      Your solicitor should make sure that the following steps are taken,
      Originally posted by jeffrey View Post
      The new landlord should notify the tenant formally. The new landlord should serve:

      a. Old landlord's Letter of Authority;
      b. Notice under s.3 of LTA 1985 (without which new landlord commits a criminal offence); and
      c. Notice under s.48 of LTA 1987 (without which new landlord cannot lawfully demand rent).

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      • #4
        Mrs Mug, thanks so much for this clear reply. Will request this from my Solicitor. Interlaken, thanks for yor response too.

        So is this right:

        1. Get old LL letter of authority.
        2. Write a letter quoting the above acts s.3 of LTA 1985 and s.48 of LTA 1987 notifying that I am the new landlord with my name and my address. Then give new bank details for rent.
        3. Send all recorded delivery to tenant.
        4. Wait nervously till rent payment date to see if the rent comes through...
        Thats it?

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