Property with Sitting Tenants Mortgages for Over 55s
At Rockhopper Later Life Finance we help customers aged 55 and over arrange mortgages on properties that have sitting tenants. A sitting tenant is someone already living in the property under a tenancy that continues after a sale or remortgage. This is common with inherited properties and certain older tenancies, and it changes both the value of the property and which lenders will consider it.
We work with customers who:
- Have inherited a property that came with a tenant in place
- Own a property with a long-standing or protected tenant
- Want to remortgage a property that is currently let
- Have been declined by a mainstream lender because of a sitting tenant
- Are buying a property sold with tenants in situ
- Want to understand how the tenancy type affects value and lending
- Want to know which lenders consider tenanted property
A property with a sitting tenant can feel difficult to deal with, particularly when it has been inherited and the situation was not of your choosing. We explain how the type of tenancy affects value and lending, and which lenders consider these properties, so you can plan your next step with a clear understanding.
The type of tenancy matters a great deal. A modern assured shorthold tenancy is treated very differently from an older regulated or protected tenancy, where the tenant may have strong rights to remain and a rent set below the market level. Lenders assess the property partly on the rights the tenant holds.
A property with a sitting tenant is often valued below its vacant possession value, because the buyer cannot move in and the future is tied to the tenancy. Mainstream residential lenders usually expect vacant possession, so a buy to let or specialist lender is more likely to consider a tenanted property.
Most buy to let mortgages are not regulated by the Financial Conduct Authority, which means the consumer protections that apply to residential mortgages may not apply. Where the tenant is a close family member, the mortgage may instead be treated as a regulated contract, and your adviser will confirm how your case is treated.
We research the market and recommend the route we believe fits. The tenancy itself is a legal matter, and we may suggest you take advice on the tenant’s rights and your options. Tax can also be a factor, and we may suggest independent tax advice alongside our mortgage advice.
The Process
Your first conversation is an informal discussion about the property, the tenancy, and your circumstances. The more you can tell us about the type of tenancy and the rent, the sooner we can identify suitable lenders.
We complete a full fact-find, consider the tenancy type and its effect on value, and research lenders comfortable with tenanted property. We then provide a written recommendation.
Every case is different. A property with a modern tenancy is assessed differently from one with a protected tenant, and our advice reflects that.
Speak to a Property Specialist
Call 0203 621 5696
Lines open 9am to 5pm Monday to Friday. Alternatively, complete the enquiry form and we will call you back at a time that suits you.