It’s important that vulnerable tenants have access to safe, secure, and decent housing that offers them the independence they need. As a landlord, how will letting to a vulnerable tenant impact your property finance?
Whether you are letting directly to a vulnerable tenant or via a company let, it’s worth being aware of how this could impact your mortgage.
Do I need a specialist mortgage for vulnerable tenants?
Simply put, no. There’s no specific buy to let mortgage for vulnerable tenants; however, you will need to look to more specialist lenders.
For the most part, finding a high street lender able to offer to more vulnerable tenants can be difficult. Speaking to an experienced whole-of-market broker will improve your chances of finding an appropriate specialist buy to let lender while still accessing a competitive deal.
It’s worth noting that specialist lenders are likely to be more flexible regarding your specific needs. For example, some of the leading specialist buy to let lenders include properties where the tenants are asylum seekers in criteria. Your broker will be able to find you an appropriate lender that meets your needs.
Company lets for vulnerable tenants
Depending on your specific requirements, a company let may be an option for you. In this case, many different charities, organisations and housing associations would be happy to take on the management of the property and the tenant, allowing for a hassle-free process.
Furthermore, it means the tenant has access to the proper support from the charity or organisation, ensuring they get the help they need while staying at your property.
Many of these organisations and charities rely on private landlords to supply the property for accommodation and support services. While it varies depending on the organisation, these agreements typically can include:
- A lease agreement for up to five years with guaranteed rent payment monthly
- No letting or management costs
- Utilities and council tax bills paid by the organisation or charity
- Full repairs and maintenance lease, excluding latent and structural defects
- Full HMO and property management, including monthly property and periodic safety inspections
If you are interested in letting your property via a company like this, it’s worth speaking to the organisation directly. You can discuss your options and learn how this may impact your property investment plans.
Speak to your broker
As mentioned above, speaking to an experienced, whole-of-market broker to see what deals you could access when you have vulnerable tenants is essential. Your broker will also be able to advise you of the best rate to support your future property investment plans and offer you the guidance you need.
If you would like to discuss your plans with one of our expert brokers, call us on 0345 345 6788, or submit an enquiry here.
25th August 2023