Guidance Request

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    Guidance Request

    Hi Everyone
    Let me be on the square from the start. We are not Landlords so I hope you don’t mind me posting.

    My wife and I are in our 50’s and are debating whether or not to re-enter the property market on the basis that the type of property we could afford to buy (on a 10 year mortgage) may be below our expectations. In other words we can afford to rent (as we currently are) a much nicer home than we can afford to buy.

    We would therefore ideally want a professional landlord and not a house-owner who may be struggling to sell for longevity purposes. Last year we were forced to move from a rather lovely barn conversion 2 years into a 5 year agreement (agreement was handshake only) so we are looking for a professional landlord on a mid-market or character property.

    Our preferred location is in the north west of England but we could consider north Wales and looking on Rightmove, we normally see those which are clearly house-owners, which is short term in reality, regardless of what is verbally agreed.

    Conversely, rightly or wrongly we usually see professional landlords operating at the lower end of the market.

    My question to the Forum therefore is are we being somewhat overly hopeful, or are there professional landlords out there who maybe specialise in this sector and are interested in long term professional tenants?

    As background I am a career IT professional, good salary, solid references and we are looking for a long term home. We have 2 small dogs and a cat.

    We are clearly in research mode at the moment and I would genuinely appreciate any comment or guidance you can give me.
    Thanks in advance

    #2
    Firstly, let me re-assure you that you are perfectly welcome to post on here. For most landlords, it makes financial sense to look for long-term tenants but few will offer long term contracts, certainly on commencement, in case you turn out to be a tenant from hell and they need to evict you .

    However, there is nothing in law to prevent you signing a 5 year or more contract and that is as binding on the landlord as it is on the tenant.

    If you are looking for 'quality' property, maybe you could look at a 'relocation' company rather than a letting agent - someone who is used to finding homes for executives or the like who have been moved by their company. With the recent re-location of the BBC to the NW I would guess there are a number operating in your area.

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      #3
      Originally posted by Jolee View Post
      My wife and I are in our 50’s and are debating whether or not to re-enter the property market on the basis that the type of property we could afford to buy (on a 10 year mortgage) may be below our expectations. In other words we can afford to rent (as we currently are) a much nicer home than we can afford to buy.
      I really know nothing about residential mortgages but I do question why you couldn't get a 25 year mortgage? I'm 49 and I could get a 25 year BTL mortgage.

      We would therefore ideally want a professional landlord and not a house-owner who may be struggling to sell for longevity purposes. Last year we were forced to move from a rather lovely barn conversion 2 years into a 5 year agreement (agreement was handshake only)
      The thing you need to know about longer term rentals is that a tenancy contract with a fixed term exceeding 3 years must be executed as a Deed. Whereas a verbal or 'handshake' agreement of 3 years or less is enforceable in law (though it may be trickier to prove if there's nothing in writing).

      My question to the Forum therefore is are we being somewhat overly hopeful, or are there professional landlords out there who maybe specialise in this sector and are interested in long term professional tenants?
      I don't think you're being overly hopeful. However, even professional, non-'accidental' landlords like me and others on the forum will be cautious before granting a very long fixed term. I'd theoretically be happy to grant a five year term if I were sure of the tenant, but to be sure of the tenant I'd want to see how it goes for six months or a year first. Some tenants look fantastic on paper and pay the rent on time etc but then prove to be a total pain in the neck with constant unreasonable complaints and/or demands.

      In your shoes I would go to reputable, ARLA-member agents and explain that you're looking for a long-term rental and want to avoid amateur or accidental landlords. It's fine to ask for information and details about the prospective landlord.






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        #4
        I think you are being a bit hopeful but there's no harm in searching.

        I've looked for similar character property and they have always been from accidental landlords that dont know their a**e from their elbow.
        That is one of the reasons they are such rental bargains.
        A professional landlord wants about a 10%+ yield, a character barn conversion typically yields around 2%. Plus the repair bills on character property are horrendous.
        It would only make sense if the landlord was investing for large capital gains, in which case you would be out on your ear anyway, should they come to fruition.

        I reckon it is the price you have to pay for having a lovely home cheap.

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          #5
          Originally posted by Jolee View Post
          We would therefore ideally want a professional landlord and not a house-owner who may be struggling to sell for longevity purposes. ... ...on Rightmove, we normally see those which are clearly house-owners, which is short term in reality, regardless of what is verbally agreed. Conversely, rightly or wrongly we usually see professional landlords operating at the lower end of the market.
          As a pro landllord myself, I have to say that I think your perception is broadly correct. If I had, say, £500K to invest now, I would every time spend it on 5 or 6 two-bedroom terraced houses rather than one footballer's mansion - I'd get more of a return on my money for the smaller properties, and with less of a risk: it wouldn't be crippling if one of my 6 small properties was empty for a bit, whereas if that happened for a few months with a mansion it could be disastrous. That's certainly not to say there are no higher-end properties let by professional landlords, just that I think many more will be owned by the 'accidental' landlords you're trying to avoid.

          Originally posted by westminster View Post
          I really know nothing about residential mortgages but I do question why you couldn't get a 25 year mortgage? I'm 49 and I could get a 25 year BTL mortgage.
          That's a bit different though - it's reasonable to suppose that a 49-year-old could still own an investment property (ie which pays back the loan) at the age of 75; whereas a residential mortgage is assumed to be paid back from earnings (and that a 75-year-old will have retired long ago).

          Comment


            #6
            Thanks everyone for your comments. They are all very helpful.

            I think I will change our tack slightly and perhaps go for less of a property and enjoy security of tenure.

            Thanks again

            Jerry

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