Can I get a mortgage on a buy to let property with a sitting tenant?

An opportunity has arisen for me to buy a property with a sitting tenant. I am a homeowner with no mortgage, I have a 25% deposit plus a reasonable job and income. The tenant has been in the property for almost 30 years and wants to stay indefinitely. My question is, can I get a mortgage when there is a sitting tenant?

A sitting tenant is someone who has a protected tenancy under the Rent Act 1977. This means that they the legal right to rent a property for life and may even be able to pass the right to rent for life onto a family member upon death. They have the right to pay a fair rent, which is typically well below market value and the landlord’s ability to increase the rent is also limited.

Sitting tenants are also referred to as regulated tenants, protected tenants and rent act tenants.

It is extremely unlikely that you would be able to get a buy to let mortgage on a property with this type of tenant because lenders deem them a bad risk – it is very difficult and costly to evict a sitting tenant.

If you’re still interested in the property, you could consider remortgaging your home to purchase it outright but if you ever need to sell the property, you could have problems finding a buyer.

I suggest that if you really want to become a landlord, you consider purchasing a less complicated property.  

If you are new to buy to let, let us help you get started. Call one of our consultant mortgage brokers on 0845 345 6788