Advice on a couple of things please

Bashy

Hi all

First i am moving out of the rented flat i have had for the past year, I do have one of them letters that hold the bond money, How do i claim it back and also is there a document that i can get the landlord to sign to say all is correct when i leave, thus no money taken from the bond amount?


Sencond have been renting now for the past 6 years ( due to bad debt from devorse) Now the new landlord when i move seems a good chap and as the house market has been bad, he was unable to sell a the house (only been short time) i am renting off him.

He said if we could sort it out, that he would draw up a contract and lend me the deposit money to buy the house (as i dont have that sort of money) And the deposit will be paid back while renting, then once paid back (would take about 1.5 years) the house be mine.

I know my credit rating cant be good due to past (about 5-6 years ago) so how can i check or where is the best place to get a mortgage for folk with bad credit past, Given this he is lending me the 10% deposit.

I cant really loose, I have a good job and pay ok too.
This has got to be better than just throwing money away by tenting all the time.

Advice please??

danielley

You need to consider what will be the purchase price... you could agree a price with him now but in 18 months time the property value could be much lower and you could end up in negative equity and unable to get a mortgage for the amount he wants.

I would tread carefully, he seems awfully keen to sell to you.

G_M

I do have one of them letters that hold the bond money, How do i claim it back

Have you checked direct with the scheme that they really hold the deposit?
The 3 schemes are here. Phone the one on your letter and ask if they hold the deposit.

How do i claim it back

It depends which scheme. Use the link above to find the website for YOUR scheme, and read its procedure.

is there a document that i can get the landlord to sign to say all is correct when i leave,

The LL (or agent) should do an inventory check out when you leave to ensure nothing is missing broken, and everything is as clean as when you moved in. This will be compared against the inventory check in which you should have agreed/signed when you moved in. If there was no check in, the LL/agent cannot deduct anything as cannot prove anything is missing, or dirtier than before.

he would draw up a contract and lend me the deposit money to buy the house (as i dont have that sort of money) And the deposit will be paid back while renting, then once paid back (would take about 1.5 years) the house be mine.

This sounds right dodgy. Get any contract checked by a solicitor. And you might find getting a mortgage tough as the lender will want to know where your deposit is coming from.

Bashy

I have checked house prices on the same street etc and area, it does seam about right. Also the guy has a few houses and is retireing thus selling all of them over time.

This i know i should be carefull but on the other hand it could take me 5 more years before i could afford a deposit (around 10%) as well at an average rent of £5200 a year times five year that would be 25000+ wasted rent money this is working out avarege rent is around £100 per week

Bashy

G_M wrote: »

This sounds right dodgy. Get any contract checked by a solicitor. And you might find getting a mortgage tough as the lender will want to know where your deposit is coming from.

This i would do for sure, The money for the deposit i could say i saved or borrowed of family member but i cant really see what difference it makes as long as there is a 10% deposit made.

The main thing is where could i get a mortgage with bad past credit.

Bashy

G_M wrote: »

Have you checked direct with the scheme that they really hold the deposit?
The 3 schemes are here. Phone the one on your letter and ask if they hold the deposit.

Looking into this now many thanks

tbs624

Has this guy got a Consumer Credit Licence?

Bashy

tbs624 wrote: »

Has this guy got a Consumer Credit Licence?

I dont know !!

All i do know is if i had the 10% deposit i would have bought the house and done it up myself (needs a bit of work) but even 2 years rent is £10400 i dont think it would loose that much money even at the rate the prices are going down at now.

Annisele

Apart from the fact that, as G_M says, it "sounds right dodgy" (I'd have used stronger words myself!), I'm afraid that you're not going to be able to get a mortgage based on a borrowed deposit.

You can't say that you "saved" the deposit if you didn't - that's mortgage fraud. The lender is going to want to know where the money came from, and you're going to have to tell them the truth.

InMyDreams

Bashy wrote: »

I dont know !!

All i do know is if i had the 10% deposit i would have bought the house and done it up myself (needs a bit of work) but even 2 years rent is £10400 i dont think it would loose that much money even at the rate the prices are going down at now.

No, you will lose something like that in interest payments *plus* however much you lose on house prices. Plus you will have saddled yourself with an enormous debt that you need to repay, regardless of what house prices do.

Have replied more fully on the other board where you posted this.

I don't really get what your landlord is proposing. If you were to buy the house now with money he lent you (which wouldn't work anyway, but aside from that) then you would not be renting off him any more. But he wants to lend you money to buy the house at today's price, then carry on charging you 'rent' as if he still owned the property for two years? This just doesn't make sense.