Permission To Let Related Questions

Anon_John

I will be a tenant.

I have been informed on this forum, that a Landlord who has NOT been given permission to let by his lenders puts me at risk if I rent from him/her, if they do not keep up with their mortgage repayments.

As I presently am unemployed, cannot get a guarantor and do not have a credit record (I have never used a credit card - only a debit card). My savings are sufficient though, so I am able to pay many months up front as the only thing I can do to obtain accommodation.

If I pay the landlord say 6 months deposit, it would put me at risk if they lose their property, as I would probably lose my money, as the Lender would have no responsibilty of paying me back.

I have also been told that I can obtain a report from the Land Registry re the property to find out who the landlord's lenders are, but this won't help if the Lender refuses to confirm whether the LL has permission to let or not. Also, the time it takes to get that information (IF it is given) could mean the property has gone by that time. If I put a holding deposit down and find that the LL does not have permission I will lose my deposit when I pull out.

My question: How do I protect my money if things go wrong. (6 months rent is a lot of money to risk). Can I get insurance or do something else to protect it? What do I need to do BEFORE I register with an agency bearing in mind my circumstances and offer?

I JUST DO NOT KNOW what to do and do not want to take risks. Please help.

Thanks so much

Benji

Well, the first thing to do is actually ask if the landlord has permission to let - and obtain proof. Most agents would include this check as part of their landlord vetting process - but not all agents are as on the ball as they should be.

If the landlord has permission to let, then you would usually be allowed to see out the balance of your fixed term.

If the landlord does not have permission to let, then legislation introduced last year - Mortgage Repossessions (Protection of Tenants etc) Act 2010 - gives you the right to apply to the court for an additional 2 months after the possession date.

How about, instead of 6 months rent, you pay 3 months rent in advance and a deposit equal to 3 months rent? The deposit is likely to be held in the Deposit Protection Service if you use a private landlord (and many agencies) so it would be available to you even if the landlord went bust.

Some landlords would not want to take a deposit of over 2 months because there are legal implications regarding assigning the tenancy, but they are not an issue for you.

As soon as you got to month 3, you would be back onto regular monthly payments and have no higher risk factor than any regular tenant.

Just found this link - which may help... http://england.shelter.org.uk/get_advice/eviction/repossession_by_a_landlords_lender

G_M

No (sensible) LL will take a deposit = 3 months rent. That much is defined as a premium and potentially gives the tenant extra rights that the LL would not find acceptable.

A professional/reasonable LL or agent will have no objection to showing you documents confirming they have CTL or a BTL mortgage, and you can check with the Land Registry almost instantly if there is a mortgage and who?