From: Geoff Whitfield
Hi,
I'm almost about to exchange on a property- 3 individual cottages on a single block.
The owner was living in one- it's not in bad condition, but has a little paint and polish to be done. It is, by far, the best of the three. Asking price is $220pw.
One is out of the equation. The third is rented out to a couple, 3 months into a 12-month lease at $180 pw.
The couple may be amenable to either:
.Swapping to the main unit at $220 pw
-or-
.Paying more rent in exchange for a reno- kitchen most of all.
My question is- what happens to the existing lease in either situation (swapping or taking a reno)? It was a contract entered into for 12 months- but with another owner. And what if it had been my tenant- can a lease be varied mid-term with the mutual consent of all parties?
The second unit reno would be barely worth it for cash flow, but would give a lot of capital improvement, and I would prefer to do that now, and refinance, rather than wait for the end of the lease.
Hi,
I'm almost about to exchange on a property- 3 individual cottages on a single block.
The owner was living in one- it's not in bad condition, but has a little paint and polish to be done. It is, by far, the best of the three. Asking price is $220pw.
One is out of the equation. The third is rented out to a couple, 3 months into a 12-month lease at $180 pw.
The couple may be amenable to either:
.Swapping to the main unit at $220 pw
-or-
.Paying more rent in exchange for a reno- kitchen most of all.
My question is- what happens to the existing lease in either situation (swapping or taking a reno)? It was a contract entered into for 12 months- but with another owner. And what if it had been my tenant- can a lease be varied mid-term with the mutual consent of all parties?
The second unit reno would be barely worth it for cash flow, but would give a lot of capital improvement, and I would prefer to do that now, and refinance, rather than wait for the end of the lease.
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