Renting help/advice

Ken_Dodds_dads_dogs_dead

Hi all, newbie so please bare with me

I have a couple of questions regarding renting.

I currently live in my first house and have been paying the mortgage for 5 years now with no hassle. Unfortunately I've just been made redundant and can't now afford the mortgage so I've decided to cut my losses and (hopefully) rent a flat.

I'm a non smoking single bloke with no kids or pets, I could possibly scrape 6 months rent up front and have a guarantor who works for the council and earns well over the 20k guarantor threshold.

My question is; will any of the above help my case for securing a flat even though I'm obviously currently out of work?

I've checked and even if I haven't found a sufficient job within the first six months the LHA will cover the rent (and I should have six months worth also saved, what with paying the six months up front)

I know there is a stigma attached to unemployed people that tars us all with the same brush, rather than a long term doley I have worked since leaving school and have just fallen on some bad luck, I was hoping this would come across and help me out.

Sorry for the long post, and thanks in advance :beer:
Ken

lynzpower

When you say cut your losses, do you mean walk away from the house? Is it up for ale at the mo, have you considered renting it out ( more instant thanselling) Dont walk away from it and hand your keys in they will come after you for the next ( I think) 12 years! :eek:

Ken_Dodds_dads_dogs_dead

Hi

Sorry I wasn't clear on that. The house is worth roughly what's left on the mortgage, no chance of renting it out as the average rent for a property of this size and condition (needs work) wouldn't cover the mortgage, it isn't worth the expense or hassle- plus I honestly don't need a house, it's just wasted space for me and my stuff, much better off paying half the current mortgage payment to rent a better sized (for my needs) flat.

I also forgot to mention that I wont pass a credit check, I got screwed over by my ex mrs and currently have a couple of defaults and a CCJ on my record, but I was hoping my situation as stated in my original post would help to back me up.

cheers

lynzpower

SO what are you going to do with it- just leave it empty???

Ken_Dodds_dads_dogs_dead

We seem to be veering off topic slightly- my initial concern is about my ability to rent not with my current house.

theartfullodger

With no job most Landlords & agents would be nervous,,,, probably wanting more careful credit checks/guarantors...

Have you thought about getting a lodger(s)>>??? Up to £4250pa rent income is not taxed under the "rent-a-room" scheme.. see ...
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804



and you'd not have to move/pay solicitors etc.. (expensive!!) and it might buy you time until you hopefully get a job.

If you go that way tell your lender & check your buildings/contents insurance is OK & use this agreement/application form...
http://www.landlordzone.co.uk/pdf/Lodger%20Application.pdf
& see this stuff...
http://www.landlordzone.co.uk/lodgers_rent-a-room.htm


Best wishes, hope it works out...

Lodger

purplebuzz

Ken_Dodds_dads_dogs_dead wrote: »

We seem to be veering off topic slightly- my initial concern is about my ability to rent not with my current house.

I think what people are getting at that, because you have not indicated your intentions regarding your current house, that you will still be responsible for your mortgage there and rent in a new place!

Therefore, if you are struggling now, how will you manage when you have to pay both.

Or are you planning just to try and give the house back to bank etc..

Caz3121

....also whilst you have your current property you may find you are not entitled to any help with renting. Although if it up for sale it will be ignored for a period of time.

Fire_Fox

Ken_Dodds_dads_dogs_dead wrote: »

We seem to be veering off topic slightly- my initial concern is about my ability to rent not with my current house.

Your ability to rent will be affected by what you do with your current house - 'walk away' and you could end up bankrupt as you will be charged for whatever it doesn't make at sale and thousands of pounds for the bank's time in sorting the situation out. Also if you are a property owner you are unlikely to be entitled to any means-tested benefits.

You'd be best off putting the house on the market and/ or taking in a lodger for a few months with a view to walking away with your credit history no worse than it already is. Defaults and CCJs (if settled) fall off your file after six years. Bankruptcy never really leaves you.

It's unfair to use a guarantor in the above circumstances (if I have got the right end of the stick). If you are made bankrupt or don't get housing benefits right away your guarantor will be liable. They are also liable for the entire period of the tenancy, so if you stay ten years, they are your guarantor for ten years.

Ken_Dodds_dads_dogs_dead

I'll be handing the house back to the mortgage company so none of the above mentioned problems will really affect me.

benjo

Ken_Dodds_dads_dogs_dead wrote: »

I'll be handing the house back to the mortgage company so none of the above mentioned problems will really affect me.

Im not sure you are right in this assumption...you may be, but Im really not convinced...

As the mortgage is still payable by you until the property is sold, doesnt really matter if you hand in the keys or not - it is your baby until the debt is fully paid off. If you dont continue to pay the mortgage the debt/interest will continue to mount - if the eventual sale price doesnt cover the banks costs + the original loan + incurred interest then they will continue to pursue you and ultimately bankurpcy is an option.

Make sure you get good, independant, face to face advise about this course of action before you take it.

However as you mention this may be veering away from the point so onward with what I think you are driving at.

I am not currently a LL but have been in the past and I have rented to families on HB (now LHA) and these are just my observations based on my understanding of the information you have posted and things I would find positive and negative in assessing your application to rent a property from me - that doesnt make me right, but I think this is what you are asking.

I think you are perhaps right in that often people are tarred with the same brush, in your case you mention long term doleys, but long term or short term in a sense is irrelevant to me - how would I know your unemployment history? You could tell me that you lost your job last month, last year or last century and I wouldnt know truth from fiction - what Im trying to say is that the length of your unemployment wouldnt matter to me in the slightest - assuming I was prepared to accept unemployed and LHA benefit tenants in the first place. If I wasnt prepared to accept LHA benefit tenants I wouldnt care a jot that you lost your job only last week, you had a potential earning capacity on a par with the Duke of Westminster and the Pope was your guarantor - hope that makes sense, and of course, its just my perspective.

In your favour - you dont smoke and you wont have a moggie/doggie infesting the place with hairs and or fleas, pooping on the carpets and chewing the doors (most pet owning tenants are far too responsible to allow this - but this is a worst case scenario).

As for being a single bloke - well I doubt that it is legal to discriminate against you because of your gender but perhaps some LL's do have a preferance in whom they rent to, families or single people....risks and benefits involved with both, families are less likely to flit (at least I would like to think parents wouldnt do that to their kids) and single adults are less likely to crayon on the walls (at least I would hope this is true) - but target your applications to LL's who do definately rent to single males and not just families.

6 months rent up front is good, plus your bond/deposit. But depending on the rental price you may be close to the savings threshold which could affect your ability to claim LHA, especially since you will also have money banked to cover your solicitors fees for cutting your losses on your house - check it out with a benefits advisor before making any decision.

So, assuming I was still a LL,

Yes I would rent to someone on LHA,
Yes I would rent to a single bloke.
6 Months rent up front and a steady guarantor would go in your favour....

But assuming I knew....

That you had lived in your own home for 5 years and couldnt get the best possible rental value out of your own property for the area, due to it needing work and it being too much hassle and expense I might worry that you wouldnt look after my place too well.

That you are prepared to cut your losses, Im reading this as 'walk away' from your mortgage comittment - sorry if I misunderstood you on that, but I might worry that you would cut your losses as a tenant at some point.

That you already have a proven history of non payment, I know they were caused by your Ex Mrs, but they are in your name, on your credit file that will show up when I credit check you and I might be concerned that any future Ex Mrs may make you unrealiable in paying your bills again....

Then I think the odds stack up against you - but that is only in my opinion.

I do wish you luck in sorting out your accomodation and strongly recommend seeking face to face advice before making any decisions.