First time letting - advice please

Road2Recovery_2

Hi,
This is my first time posting on this forum so I hope someone can advise me.

My girlfriend and I are looking at renting our first place together - a nice little one bedroom flat in a new build complex, however I have some issues with regards the checks the letting agency will conduct.

As we are both going to be living in the flat, the agency have said we both need to fill in the tenancy applications so can both be checked out, however I have a not to be proud of financial past...

I entered into an IVA in Nov 2005 in order to manage debts obtained whilst running my own business (which I closed down in 2006). My IVA was successfully completed by way of a full and final settlement in February 2007 so is no longer in force, and leaves me with no debt whatsoever now. My concern is this will bite us in the backside and cause a problem trying to let a place.

I am employed now and earn £15000 per year, my girlfriend is a teacher and earns £23000 per year. She is 100% credit worthy with no debt.

Do you think my old IVA will cause us a problem in getting this flat? The rent on it is £400 per month.

Thanks for any advice you may be able to give/

hellokitty08

You should ask the agents direct, some will have a problem with it, other wont mind, as long as you tell them before they do the credit check.

Road2Recovery_2

I've not told them directly, however on the Tenancy Application form it says:

"Have you, your spouse, or any other party to this application ever been insolvent, bankrupt, made arrangements with creditors or
involved in any court proceedings for debt?" YES / NO

"If YES, please provide details".


I have given details in here about the IVA, why it was taken out and the fact it is now settled etc.

At the bottom of the form there is a section for if a Guarantor is required. Hopefully if my IVA is going to cause a problem they will give us the option of a Guarantor.

birduk

I can't tell you what your agency will do, but I had the same problem with my OH. He had a bit of a dodgy past (unbeknownst to me) and he was refused on the application. Funnily enough though, all I had to do was act as a guarantoor for him and problem solved, we didn't have to get an independent person. Hopefully this will work for you too, as we are talking about very similar sorts of numbers.

hellokitty08

I guess you have already paid your holding deposit / admin fee? I would have actually told them before doing this. As they might just now take your deposit.

I think you should phone them up and talk to them about it. Better then sitting and wondering what they will do.

Road2Recovery_2

Yes, we have already paid the holding deposit..... £100 per person

G_M

It may not just be the landlord/EA that is interested in this. If the LL has taken out rent insurance (to cover hime against a tenant who defaults on rent or damages the property) then it is standard practice for the insurer to want the tenant to meet ceretain criteria (including no bankrupcy/IVA). Example here.

A guarantor, however, is likely to get you round this, as the insurance company can sue the guarantor if you default on the rent.

Road2Recovery_2

There is a fair chance the LL or LA with have rent insurance, as they are quite a large company I think.

Another option we have if they dont suggest a guarantor is to pay 6 months rent up front, which we can easily do. Its a 6 month initial tenancy which then goes onto like a rolling month on month agreement.

Would they be likely to take the 6 months rent up front if they fail me on credit checks?

G_M

They might. The insurance scheme probobly won't as they have fixed rules on tenants credit ratings, but the LL/EA might forego the insurance if they have cash in hand.

However what happens after 6 months? They give you another 6 month contract in return for 6 months rent up front? What if you can't pay up front again but refuse to leave (not suggesting you will - just playing devils advocate here). They have long court proceedings, no rent in hand AND no insurance!

Trollfever

If you are going to pay 6 months rent up front, make sure that you negotiate a discount.

hellokitty08

You really need to phone them and speak to them. Its only the LA that are going to be able to give you the answers that you are looking for.

Dont forget the LL might decide he doesnt want tennants with a poor credit history and therefore you might lose out on the property all together.

Please phone the LA and speak to them.