can the lady who i am buying off become my tenant?

[dudley]

I am hoping to buy my first buy to let property very soon. The owner has approached me and asked if she can be my tenant after I have purchased. She would have to apply for housing benefit. She is a very reliable and clean and tidy person who would be the ideal tenant. However, does anyone know if she would be disqualified from housing benefit because she wa the previous owner? She won't financially have much savings as the proceeds of the sale will go to pay her mortgage off.

Also, because this has been her home has she more legal rights to stay there than if I rented it to another person?

[roppa]

hi dudley

i can only go from my own experience of housing benefit tenant's in newcastle/tyne and wear, where upon one of the questions on the HB form ask's the person if they have owed the property prieviously or not.

this has meant that to this point i have never had a tenant sucsessfuly win a housing benefit award after they have sold the property to another person claiming on the same adress.

as for the actual tenant, if they are not working at the moment then how do they have the property?

i am asuming that this may be a martial seperation and to which case the "wife" is wanting to stay in the property but is having to sell the property in order to buy out the "husband"

as for extra rights for staying in the property i am unsure... as you would be signing an agreement with the tenant that has not been inplace before as her as the teannt of the property. as as such, it should be subject to the usual rules of a tenancy agreement.

meaning that if she refuse's to pay the rent or is unable to meet the rent that you have requested you will not be stuck with her in the property indefinatly.

i would stronger recomend that you see a solicitors advise about the signing of the tenancy and that the tenant does the same. the tenant's solicitor will advise for as long a term as possible for the tenancy..and your's will give the oposite adive. but it willbe down to the lender to decide as to what term they are wanting to have in order to compleate on the B2L.

my gut instinct is that the tenant will strugle to maintain the rent comitment and that not long after you purchased the property the tenant will fall behind due to not being entitled to housing benefit payments.

obviously your decision, but i would be reluctant knowing that i was going to openly take on a tenant that i have little chance of getting the rent from.

[jam]

H.B regulations do not automatically bar former owners. They need to show that they sold the accommodation becasue it was unafforadble. The rules barring former owners is about people not taking advantage of the HB system. However if she shows that selling the home was on the grounds of affordabilty she should be able to claim h.b.

She would not have rights to stay in the property. It is essential that you enter into a written contract with her and not verbal. This should be on an asurred shorthold tenanacy.

This should ensure you have no problems in gaining possession under the accerlated possession procedure.

[dudley]

Thank you for your advice. I have spoken to this lady at length to establish her situation, as the last thing I want is for her to be unable to afford her rent. She is a low earner but has sought to take on a second job to try to keep the marital home. She even thought of renting a room but due to her suffering panic attacks her doctor adviced her this could worsen her condition. The mortgage has been on a payment holiday for six months to enable her to try to find alternative employment but it looks like her very low income won't be increased.

She has filled in a pre-tenancy determination form which I have to sign to say I would be her landlord. They informed her that then they would look at her situation.