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Paying 12 months rent up-front
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Piggles12345
Posts: 736 Forumite
Hi,
A friend of mine is looking to rent a property and is thinking about offering 12 months rent up front. She is doing this as she has no income (unfunded PhD student) but has enough savings to pay the rent.
The property that she is looking at is fully managed by and let through a lettings agency.
I was wondering how the lettings agency will pay her landlord if she pays 12 months up-front- will they pay the landlord monthly? Or pass on the whole lump sum up-front?
Either way, if the landlord goes bankrupt and his/her property is repossessed, is my friend's pre-paid rent protected legally at all? Does the manner in which the letting agents have paid the landlord (either monthly or up-front) make a difference in this- if they are paying the landlord monthly, surely the money is in THEIR bank account rather than the landlords, so could be handed back to my friend).
I have told her that I will find some information on this before she goes ahead and hands over £10,000!! Any advice will be very much appreciated.
Thanks
A friend of mine is looking to rent a property and is thinking about offering 12 months rent up front. She is doing this as she has no income (unfunded PhD student) but has enough savings to pay the rent.
The property that she is looking at is fully managed by and let through a lettings agency.
I was wondering how the lettings agency will pay her landlord if she pays 12 months up-front- will they pay the landlord monthly? Or pass on the whole lump sum up-front?
Either way, if the landlord goes bankrupt and his/her property is repossessed, is my friend's pre-paid rent protected legally at all? Does the manner in which the letting agents have paid the landlord (either monthly or up-front) make a difference in this- if they are paying the landlord monthly, surely the money is in THEIR bank account rather than the landlords, so could be handed back to my friend).
I have told her that I will find some information on this before she goes ahead and hands over £10,000!! Any advice will be very much appreciated.
Thanks
'I can't deny the British influence on my accent and mannerisms, but I don't know the British national anthem, I didn't weep for Princess Diana and I always cheer when Britain loses at sport. That's how British I am' Constantine-Simms. :T
On God: 'The invisible and the non-existent look very much alike' D. B. McKown :T
On God: 'The invisible and the non-existent look very much alike' D. B. McKown :T
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Comments
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Well if it were me i would keep it and pay it each month. You would be getting interest on the 10 thousand rather than someone else.
I am the last person to be giving advice on this, but if it were me that would be my route. At least you know its in your bank should anything go boobs up with the others.0 -
Well if it were me i would keep it and pay it each month. You would be getting interest on the 10 thousand rather than someone else.
I am the last person to be giving advice on this, but if it were me that would be my route. At least you know its in your bank should anything go boobs up with the others.
If she has no income then the letting agent and landlord would be very unlikely to let her rent unless she pays upfront (at least 6 months).
OP - sorry, I don't know the answer to your questions.Wk1-3: Find house, offer accepted, apply mortgage
Wk4: Mortgage offered
Wk5-9: Solicitors dragging things
Wk12: Complete(when we get there!)0 -
Not that she will be getting too much interest on the money anytime soon!
It's just that, as ib0211 said, my friend is worried that the landlord will not accept her as a tenant if she doesn't offer rent up-front as she has no income!'I can't deny the British influence on my accent and mannerisms, but I don't know the British national anthem, I didn't weep for Princess Diana and I always cheer when Britain loses at sport. That's how British I am' Constantine-Simms. :T
On God: 'The invisible and the non-existent look very much alike' D. B. McKown :T0 -
Would the LL accept her with a guarantor and proof of funds, re bank statements?Pawpurrs x
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She doesn't really have anyone to be her guarantor!'I can't deny the British influence on my accent and mannerisms, but I don't know the British national anthem, I didn't weep for Princess Diana and I always cheer when Britain loses at sport. That's how British I am' Constantine-Simms. :T
On God: 'The invisible and the non-existent look very much alike' D. B. McKown :T0 -
I'd try and pay as little as possible up-front (say 3months, or 6 months...) as in the unlikely event that her personal circumstances change (eg course proves unattractive, college chucks her out, she meets attractive young & athletic millionaire with half-empty mansion.. ) she can than give notice & not have spent all the £10k... )
Cheers!
Lodger0 -
theartfullodger wrote: »I'd try and pay as little as possible up-front (say 3months, or 6 months...) as in the unlikely event that her personal circumstances change (eg course proves unattractive, college chucks her out, she meets attractive young & athletic millionaire with half-empty mansion.. ) she can than give notice & not have spent all the £10k... )
Cheers!
Lodger
She is unlikely to drop out now! She is in her third year and has done the past two and a half unfunded!! And, as a radical feminist, I can't see an attractive, young and athletic millionaire floating her boat!! But I see exactly what you mean!
I will advise her to offer 3 or 6 months up-front, rather than the full 12!
Do you know how far this money (the 3 or 6 months) will be protected?'I can't deny the British influence on my accent and mannerisms, but I don't know the British national anthem, I didn't weep for Princess Diana and I always cheer when Britain loses at sport. That's how British I am' Constantine-Simms. :T
On God: 'The invisible and the non-existent look very much alike' D. B. McKown :T0 -
I presume that if the landlord goes bankrupt your friend will be stuffed. The money she has paid will just be an unsecured claim and will rank behind all secured creditors. The trustee would probably terminate the lease as onerous and would not be in a position to pay her back.
Perhaps she could get a solicitor to hold the money on account or ask for an escrow fund to be set up or the letting agent to hold the money at the landlords risk.0 -
Radiantsoul wrote: »or the letting agent to hold the money at the landlords risk.
Is this common place in the UK?'I can't deny the British influence on my accent and mannerisms, but I don't know the British national anthem, I didn't weep for Princess Diana and I always cheer when Britain loses at sport. That's how British I am' Constantine-Simms. :T
On God: 'The invisible and the non-existent look very much alike' D. B. McKown :T0 -
Radiantsoul wrote: »I presume that if the landlord goes bankrupt your friend will be stuffed. The money she has paid will just be an unsecured claim and will rank behind all secured creditors. The trustee would probably terminate the lease as onerous and would not be in a position to pay her back.
Perhaps she could get a solicitor to hold the money on account or ask for an escrow fund to be set up or the letting agent to hold the money at the landlords risk.
Finally somebody dealing in facts not opinion!0
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