Tenancy Agreement Before Completing

[chrisrush 1]

Hi,

I am currently purchasing my first buy to let property with a tenant in situ. The tenant has rented the property for 12 years and owned the property for the 12 years prior to that. When viewing the property I got on really well with the tenant but said to him that I didn't think the rent he was paying was high enough to make it a valid investment. The tenant then admitted to me that he knew what other people in the area paid in rent and that he was happy for it to be increased to that amount.

That means that I would have a long term tenant, who sees the house as his home and looks after it accordingly, paying me a 10% yield on the property. This all stack up excellently for me, however I am concerned about completing prior to have the tenancy agreement finalized with the new rental amount.

1. Is this standard practice where a tenant in situ signs a new tenancy agreement before completion of sale? That would be ideal for me for piece of mind.

2. Should I be getting a solicitor to draw up a tenancy agreement or is that something I could/should do myself? I won't be using a letting agent on this property.

Thanks for any help

 

[sophia yorke 1]

Are you saying he is renting his own btl? Is that even legal? I would clarify thing before completing.

[adamholt 20]

If you're mortgaging this - check that a condition isn't that the property is vacant upon completion...!