Updating post from Reddit.

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Posted by Any_Mathematician718 2 weeks ago
Landlord wants to remorgage

I'm a tenant who has lived at this property for 20 yes today I had a email saying the landlord is wanting to remortgage to get a better deal. BTW the email says hes not selling. with a company called e surv. Anybody know if he as alterey motive?

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Posted by LokoloMSE 2 weeks ago

E surv is a common surveyor used by a lot of mortgage companies.

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Posted by Any_Mathematician718 2 weeks ago

I live in a one bedroom terraced house with no front or back garden like I say I've lived here 20 yes now so I would have thought a landlord buys a house outright then LETS it out I'm somewhat confused

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Posted by LokoloMSE 2 weeks ago

No that isn't what landlords do, mostly. They will use a landlord mortgage (called buy to let).

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Posted by Any_Mathematician718 2 weeks ago

I have no idea how it works thanks for letting me know

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Posted by hammergrx900 2 weeks ago

It's basically a way for a landlord to pocket your rent and pay for their lifestyle. And then they only have to worry about paying the mortgage when they sell the house, but as we all know house prices only go up so it's a win win for the landlord really. In a nutshell anyway.....

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Posted by alexchamberlain 2 weeks ago

You mean the landlord provides a valuable service providing flexible and maintained accommodation for those that either don't want or can't buy a house for themselves, right?

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Posted by devtastic 2 weeks ago

No, it is quite common to have a mortgage because it means a landlord can buy a £100k house with £25k deposit and a £75K mortgage. As long as the rent covers the mortgage and running costs they should be okay.

So he is probably telling the truth. As I am sure you, know interest rates have gone up a lot in the last few years so it may be that he used to pay £300 a month, and that is now £500 a month, and he is trying to switch to one that is at £400 a month to save him £100 a month

Additionally if the property is worth more than when he bought he may also be remortgaging to get some cash. If the £100k house is now worth £150k then he could remortgage at £100k and get £25k cash (£75k to pay off the old mortgage and £25k in cash). As long as the rent still covers the new mortgage payment then he would be okay.

Either way in both those scenarios the chances are he is committing to your house which supports his claim that he is not looking at selling, e.g., if he took out a 2 years fixed rate mortgage he will be penalised if he sells before 2 years. It's not a 100% guarantee you are safe, but it's likely he is being straight with you.

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Posted by Alternative_Can_2186 2 weeks ago

The bank requires it, not them, its just a tick box he has to go through for a remortgage which MOST mortgage owners do every 2-5 years. This should not on its own concern you without any other weirdness.

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Posted by Any_Mathematician718 2 weeks ago

Thank you

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Posted by Alternative_Can_2186 2 weeks ago

I have done this to tenants so to confirm your other questions, they are looking for a roof that does not crazily leak, a working toilet, running water and to make sure the estimated value is roughly right that's all. If your washing machine doesn't work or there is a hole in the wall that's not structural damage or exposing wires, they wont care too much.

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Posted by purely_specific 2 weeks ago

Landlord may have had a 20yr interest only and now needs to remortgage.

The landlord would just tell you if they were selling. It’s not like the can spring it on you can be like ‘begone!’ You need months of notice and the bank typically need the place empty

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Posted by Anxious-Guarantee-12 2 weeks ago

Usually the tenant should be the first candidate. Save you the agency fees. 

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Posted by vodkabacardi 2 weeks ago

It’s needs to be surveyed by a valuer to re-mortgage.

E-Surv do mortgage valuations.

Source: I’m a mortgage broker and a landlord.

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Posted by seven-cents 2 weeks ago

Don't attempt to block entry to the surveyor, unless you want to be served notice.

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Posted by Any_Mathematician718 2 weeks ago

I will be at home. Is like a house inspection?

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Posted by seven-cents 2 weeks ago

Not really.. it's usually just a survey of the structure (checking for subsidence and cracks) and energy efficiency of the property

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Posted by Any_Mathematician718 2 weeks ago

Well there a couple of loose roof slates an what looks like a damp patch on the bathroom ceiling. Oh and living room an bedroom doors are hard to open ( I think the wood as expanded) so it's a struggle to open them

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Posted by seven-cents 2 weeks ago

Then the landlord should fix those things. Have you reported them? If not, why not? It's the landlord's responsibility to fix those issues, but it's your responsibility to report them while you're living there.

Anyway, the mortgage survey is not there to stitch you up.

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Posted by Any_Mathematician718 2 weeks ago

Yes I reported the doors over 2 months ago not heard a thing about fixing them

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Posted by seven-cents 2 weeks ago

Report all issues to the landlord/agency again. Do it via email or text so that you have a "paper trail"

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Posted by Itchybutt85 2 weeks ago

Typical valuation inspection on a small terraced house 15 minutes tops. Valuer will measure property externally, photos front, back, bathroom, kitchen, poke his head in the loft and nosey in each room.

Nothing to worry about on that front

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Posted by After_Hovercraft7808 2 weeks ago

They may also need a new energy performance certificate to obtain a mortgage, so don’t be shocked if you also need to let an EPC assessor round as well. Likely just another 15min of your time.

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Posted by towelie111 2 weeks ago

Nothing wrong with remortgaging. I’d advise all, landlord, or resident to look at other mortgage companies when fixed rates end.

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Posted by p0u1 2 weeks ago

How does it feel basically buying a house for someone else?

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