Updating post from Reddit.
Hi I need some advice I’m looking at buying another BTL flat but I’ve been told by 1 estate agent that it the flat I’m looking at can’t be rented out and they are waiting to get hold of the lease to find out for sure. But there are 3 other flats for sale in the same block and the estate agents (different companies) who are selling those assure me that those ones can be rented out. Obviously I’m worried to buy a flat in that block in case I can’t rent it out. So how can I find out the definitive answer?
The estate agent already told you. Read the lease.
Did you know estate agents are also landlords and also want a good deal. I was once in the process of buying a BTL and it fell through, when I spoke to the seller he said that the estate agent is buying the property personally now. I have also sold a property and the agent lowered the requested sale price without informing me because their friend wanted to purchase it, but couldn't afford at the listed price. I'm sure others can tell you more agent stories. Do your own homework and check the documents.
It depends on the lease. It may be the case that you have to ask permission from the management company or freeholder first before you rent it out. The only way to find out is to put in an offer and obtain a copy of the lease.
See if the lease is on land registry. If so pay £3 and read what’s there
That's at best a summary? To order the actual lease from land registry takes time
Sometimes entire lease is available.
Was for the last leasehold I bought.
> I’m worried to buy a flat in that block in case I can’t rent it out
You want a copy of the lease, your Conveyancing Solicitor can confirm via that (if you cant) if renting is prohibited or not. Whilst is is uncommon, lease terms are on a case-by-case basis so the owner may have given different lease terms to each flat.
Mortgage Lenders do not "like it" if too many flats in a block are rented, compared to owner occupied. A conciencious property developer would know this and may have limited some flats so can only be owner occupiers.
Hope this helps, check the lease & estate agents job is to sell it not advise you.
Ah ok great thanks that makes sense now. One is on at 80 which can’t be rented out they say but the others are on at 115 so I guess that also explains the price differential. Ok so my solicitor will advise when we go the contracts then if it can’t be rented out I can pull out then right?