Fees and Rent

Charlie23

Hi all
I've been advised to go brankrupt by CCCS today. My house will be repossessed (it's fine by us the house needs lots of work and we're happy to rent)
I've been ringing round estate agents and they've all pretty much said they need six months rent in advance. How do i get it?
I would need £3300!! that would be about 4 months mortgage arrears and i'm not sure Northern Rock would let me get that behind, plus i just want to move and get everything sorted.
So my question is how did everyone (who needed it) get their six months upfront rent payments.
Now i'm going to be stupid but here's another question. Once i've paid my six months up front do i then not pay rent until five/six months later? Obivously if this was the case i would be putting the rent money in a savings account ready to pay the next six months upfront.
Hope thats no too confusing, my brain doesn't really want to work at the moment.
Thanks
Charlie

skylight

But you would not be paying any mortgage or debts for that period of time, so you would use that. NR is not likely to start repo for the property much before that time anyway. The first 2 months are going to be calls and letters about the mortgage payments. You have anything from 3-12 months before final, absolute court hearings for formal possession, 3 months is very unusual though.

As to the next 6 months, that would be something you would have to check with the individual letting agent as I guess it could be either way - but most would be not pay anything for 6 months and then monthly thereon in.

messimoney

6 Months in advance?? Did you tell them you would be bankrupt? Id rent before you file for bankruptcy.

tigerfeet2006

Messimoney it is always best to be up front with the LA's. Some leases have BR clauses in them. Smaller agencies are usually more accomodating with regards to rent up front rather than the national ones.

messimoney

I understand that, I just ment if they didnt plan to go BR immediately and planned to wait a couple of months, it may be easier to go rent before hand, and show the landlord / agency you are able to pay on time etc.

Charlie23

yeah i told them we'd be going bankrupt as i've been advised to be honest. I've got a child and cat so don't really want to move and them to chuck me out 2 months later. It's going to be hard enough to find somewhere as it is.
Speaking to my mum i realised that not paying my loan and mortgage i'll have £1000 a month so hopefully i can use that.
We're gonna try and get out of the house as quick as possible.
Thanks for everyones advice.

fiveyearplan

I always thought the 6 months was a deposit and that you still paid monthly. I suppose it all depends on the landlord.

Charlie23

fiveyearplan i did wonder that. i'm confused by it all! So if it's just a deposit and then i continue to pay each month, i'll get the full six month deposit back when we leave so long as everythings ok. Either way i don't mind as either way it should mean i have six months deposit saved whether it's in my accoun or the estate agents. I know i won't be earning interest but at least it will be there.

fiveyearplan

Just something for you to clarify beforehand. I wouldn't like to have to pay up front every six months because I'm not good at saving!

messimoney

Have you tried your local housing dept, ours runs a place called The Bond Board. They basically help you out with a bond for a private property. Might be worth an ask.

skylight

There is no way I would allow any letting agent or landlord to hold 6 months rent as a deposit. If they want it as rent up front, then its rent up front plus a deposit as normal.

I know that "technically" the deposit is now supposed to be securely held in schemes, but many, many landlords just don't bother - and £3k is an awful lot of money to lose if the landlord has to go bankrupt or turns out to be a tit (by claiming for everything possible at the end of the tenancy and you having to go to court for the deposit back).