To sell or not?

rumncoke

We have been renting our old house out for the last 9 months due to sale falling though at the last minute after we had moved. Tenants now on month by month. Last month rent was late & LA still have not yet had this months due on 12th. We know he lost his job in January & is now claiming benefit. I reassured them at as long as rent was paid no problem.

However we have had a change in circs due to DH now being on sick leave. He has got to have an operation & will be off at least another 2 months. Hopefully he should be back in work before he goes down to half pay in August.

This has made us think that if anything unforseen was to happen we would struggle to continue paying such a huge mortgage without running our savings right down & eating into kids uni money.

I know the tenants wont be happy if we decide to sell as they have decorated (with our permission) & wanted to make it a long term home with a view to buying in the future.

Houses have begun to sell here if priced right & it is in a popular location.

What would you do?

lincroft1710

Your are responsible for your family's financial wellbeing, not your tenants'. Tenants aren't playing ball as they are behind with rent. If you did sell you could offer tenants something towards their decorating costs or offset against rent arrears.

pawpurrs

I dont see why the tennants should get money back for decorating? I allways decorated when I rented, wouldnt have dreamed of getting some cash back?
I think you need to have a word with your tennants and LA about the rent arrears, they may be entitiled to housing benefit, but it may not cover the full rent.

rumncoke

Definately would not think about offering them anything towards the decorating costs, anyway. Afterall it was their choice. They had repainted 3 rooms within 6 weeks of moving in. At that point we would not have known what sort of tenants they were going to be anyway.

Up until last month rent was always paid on time but LA had to chase last mongth & has already contacted them about this months.

Just feel a bit bad about serving them notice after originally saying we had no intention of selling for a few years. However circumstances do change & as houses are now selling here we feel it makes more financial sense to reduce our mortgage as much as possible.

socrates

rumncoke wrote: »

Definately would not think about offering them anything towards the decorating costs, anyway. Afterall it was their choice. They had repainted 3 rooms within 6 weeks of moving in. At that point we would not have known what sort of tenants they were going to be anyway.

Up until last month rent was always paid on time but LA had to chase last mongth & has already contacted them about this months.

Just feel a bit bad about serving them notice after originally saying we had no intention of selling for a few years. However circumstances do change & as houses are now selling here we feel it makes more financial sense to reduce our mortgage as much as possible.

Just as a side issue.

If they are claiming LHA (new form of Housing Benefit) - you can have the LHA suspended as they may be pocketing 8 weeks of money (and the rest) and have no intention of paying you full stop - and it may take months to get them out.

Speak to your Local Authority, get is suspended and try your hardest to get it paid to you directly.

The money they are receiving must be going somewhere if its not going to you.

You could also tell them that your insurance and your lender do not allow you to rent to benefit claimants.

I think you are worrying about the wrong thing here.

Plus if you are trying to sell and evict those two do not go hand in hand.

The unpaid rent is the issue here not if you sell or don't.

tenke

You should definitely do things, so you dont fall backwards in your own payments, unfortunately in these money matters, prevention is the key to avoid further disaster.

I am surprised the LA accepted rent without direct debit??

In all the places we have rented that was the 1st thing we had to do, set up direct debit, to avoid non payment i think.

Anyway, best of luck with the situation, hope it all works out for you;)

rumncoke

Definately would not think about offering them anything towards the decorating costs, anyway. Afterall it was their choice. They had repainted 3 rooms within 6 weeks of moving in. I hasten to add it did not actually need doing but they wanted to put there stamp on it! At that point we would not have known what sort of tenants they were going to be anyway.

Up until last month rent was always paid on time but LA had to chase last mongth & has already contacted them about this months.

Just feel a bit bad about serving them notice after originally saying we had no intention of selling for a few years. However circumstances do change & as houses are now selling here we feel it makes more financial sense to reduce our mortgage as much as possible.

rumncoke

Dont know why that posted twice, I was only trying to edit it.

Originally rent was paid by DD but they cancelled it when started claiming. Rent last month was only 1 week late & hopefully it will be the same this time. I will speak to LA on Monday.

We will probably wait until we have this months, which hopefully will be next week before I speak to them so at least it will only be the 1 month that we may have to chase if we serve notice for them to be out by 11 June.

rumncoke

tenke wrote: »

You should definitely do things, so you dont fall backwards in your own payments, unfortunately in these money matters, prevention is the key to avoid further disaster.

Fortunately there is no danger of us falling behind with our payments as we have got a good savings reserve. Just don't want to have to dip into savings pot as DS goes to uni in September & also have money put aside for DD when her turn comes. If house was sold then we would be about 75% offset on the residual mortgage anyway.

Also with the fact that we are on the SVR we have greatly benefitted form the cuts in interest rates.

rumncoke

Quick update. Tenants gave notice on Monday anyway. They will be out mid May. We should be getting the rent owed next week hopefully otherwise we will be chasing it.

Due to the fact that they haven't cut the grass since they have been there I wanted to do it while weather is fine. Spoke to man Monday night & he was fine about it, & even agreed for EA to call to take photos for us to get it back on market. Just said to phone first. Tried to phone over last couple of days no reply. Went down there today to speak to them to arrange it & she came to door & told me NO, wait till we've gone & shut door in my face.

Spoke to LA who is going to try to get hold of them & point out I have right of access for maintenance. I know they will be busy packing etc but all I wanted was access to a plug. There is a separate utility so I wouldn't even have had to go in the house.

I think we will be inspecting house very carefully as they definately haven't kept garden tidy & free of weeds as per contract.

socrates

rumncoke wrote: »

Quick update. Tenants gave notice on Monday anyway. They will be out mid May. We should be getting the rent owed next week hopefully otherwise we will be chasing it.

Due to the fact that they haven't cut the grass since they have been there I wanted to do it while weather is fine. Spoke to man Monday night & he was fine about it, & even agreed for EA to call to take photos for us to get it back on market. Just said to phone first. Tried to phone over last couple of days no reply. Went down there today to speak to them to arrange it & she came to door & told me NO, wait till we've gone & shut door in my face.

Spoke to LA who is going to try to get hold of them & point out I have right of access for maintenance. I know they will be busy packing etc but all I wanted was access to a plug. There is a separate utility so I wouldn't even have had to go in the house.

I think we will be inspecting house very carefully as they definately haven't kept garden tidy & free of weeds as per contract.

I think the garden is the least of your problems - let them leave and then do the garden.

Her attitude tells me they are going to leave without paying the money they owe you.

Is there a deposit held? - put the LA on warning from now - I have seen these signs before.