Urgh housing options as end of pregnancy looms!

Cazza1

Hi there,

Just wondered if anybody had any advice really. Me and OH have rented our current 3 bed property for 5.5 years and need to let LL's know if we intend to renew soon. I am pregnant and we have an almost 3 year old little boy. I'm part time employed, OH is self employed (but income is very unpredictable at the mo) and we get tax credits and child benefit. We thought our financial situation was looking up last year but things have taken a bit of a dive and there are no guarantees about OH's income this financial year but he should be able to take something - but not sure how much and when etc.

My income will drop from going on maternity leave and tax creds will prob stay the same as last year as my income will drop but OH's will increase a bit (we have tried to predict for renewal) so credits will prob be based on last years income. Our rent is quite high and takes a HUGE percentage of our income (live in south east) but we just about manage with no frills eg no sky, savings, loans etc. I have managed to get the food shop down to about £40 a week but this is really pushing it especially if we want a chicken or something and some mince!!

Our tenancy is due to expire in a couple of months, 2 days before the baby is due!!! Have requested the landlords add a get out clause to our contract so we could give 2 months notice if we needed to leave in the next agreement but they have said no to this and no to a rolling contract - that they will give us a one off 6 month contract and that is it at the current rent and on the current terms.

So do people think
1. Move in August when baby due
2. Get 6 month contract and pray we can afford it and look into moving if we still need to after this time

I've emailed again regarding a clause/rolling contract but I don't think they will budge - despite the fact we have been here for 5.5 years and have been good tenants (taken care of house and garden, always paid rent on time etc) but am really stuck on what to do. Added to this is my OH's situation - he went bankrupt 1.5 years ago (and I know that the LL's were lenient with us at this time because going bankrupt can actually breach a tenancy) so getting him onto another tenancy would be very difficult but my wage seems quite low to be considered on its own??

I must admit the thought of moving is really stressing me out but I need to be realistic and I don't want to end up not being able to afford to live after signing up - our current get out clause means we would be liable for a lot of costs if we terminated the contract early (could work out to thousands) - so am feeling stuck between a rock and a hard place at a time when I want to be nesting and feeling all safe and taken care of!

Am looking into homebuy but don't think my income is high enough and also looking at rental properties in the area at the moment but not made any decisions as am not sure what to do. OH doesn't want to move but equally he realises without the financial situation improving we may have no choice??

Hope that people can understand - We're both hardworking people and have found ourselves in very unfortunate circumstances on and off over the last few years!! Hope someone may have some thoughts...

Thanks!!

tbs624

Do you deal direct with the LL or are you going via an LA?

marcowil

Surely you can just let your current agreement expire and if it goes one day over then you are on a periodic tenancy with 2 months notice required anyway. This may not be as secure but any decent landlord wouldnt then try to evict you since they (currently) have guaranteed rent?

Once on to a periodic tenancy you can perhaps negotiate a better new agreement

BigAunty

Double check your benefit entitlements after the birth of your child by modelling the scenario on the Turn2us online benefit calculator or run your queries past the benefit board members. You can identify the maximum LHA rate on the Direct Gov or local council website which you need on this calculator.


You sound like a thrifty household but nonetheless, do download the MSE budget planner and work through the website to identify where to slash more costs. For example, one member has written a recipe website where a family of 4 can feed themselves for £100 a month (all meals). There's also an 'up your income' board on MSE.

No-one can make you sign a new contract so it would automatically become a periodic tenancy but this means flexibility on the part of the landlord to serve notice to you, that's the risk.

In the event that you do need or decide to move, do you have someone who will act as a guarantor?

Cazza1

Hi there,
Thank you for the replies - I will have a look at the benefits once the baby is born thank you - I imagine our tax credits may go up a bit which will help plus a bit of extra child benefit. Wowsers - feed a family of four for £100 a month!!! I thought I was doing well at £40 a week lol. I have been selling everything I can possibly think of on ebay and my mum gave me some bits to sell as well which I did quite well on - this has gone towards paying off my student/graduate overdraft which I was left with after finishing uni. So haven't seen the extra but am almost completely out of debt now.

I did know about the periodic tenancy and this is something I have suggested to the LL's but they have been adament they want a years contract but will suffer a one off six month contract instead! What worries me is if I haven't let them know 2 months before - can't they just serve us notice to evict us? Does that mean even if they served us notice, if we were in the property the day after the tenancy expires we would go onto a periodic tenancy? I really want to secure a good reference from them as I think it will stand us in good stead in finding another property (esp as OH has the bankruptcy behind him).

Me and OH both have guarators - he has his mum and I have my mum, so that makes me feel a bit better but there's every chance (after speaking to letting agents) that LL's won't want to consider OH and therefore it would just be me - but perhaps with a guarantor this would be ok.

We used to go through a letting agent who managed the property but after a few years (in 2009) the LL's proposed that we let directly from them to save us the cost of renewing the tenancy with the agent (was really expensive) and I think so that they could see their extra 10% each month - having been here for over 2 years by that point we had built up a good trusting relationship. Which I believe we continue to have but they just seem fairly inflexible. I think this is because they live in another country though - so they manage the property from overseas but have a friend who we can turn to who lives near the property in the event that we need to (for example recent problems with window lock breaking - this was sorted out the same day).

Its just such a difficult situation - I could work in OH's business (actually his mums business which he is self employed in) but I don't think there would be any spare money to pay me otherwise he'd already be paying himself it!! I will get maternity pay, increased benefits etc but I'm just worried if its not enough to make ends meet - the last thing I want to do is default on rent and end up homeless with 2 young children but as I say I am very worried about the prospect of moving on my due date and I get quite shaky and anxious when I start to think about it - especially when writing emails to the LLs.

Perhaps the best thing is to call their bluff and just not give notice and then stay and get put on a periodic tenancy which may buy us a couple more months to find somewhere once ababy is born (if they serve us notice to evict). There's every likelihood we might not move anyway but I must admit the more inflexible they become the more I want to walk away just out of principle lol!!! Part of wanting to move as well is they have put the rent up twice and I know we can rent a 3 bed semi (prob not as nice as the one we're in) cheaper than what we pay and I would like to be in a position to save a bit instead of handing over everything I earn and finding someone else's retirement!! I would like to get a mortgage in a few years time but I know this isn't realistic for ages because of OHs bankruptcy and I need to be full time to get a higher wage really (even though I'd end up seeing the same amount due to childcare costs!).

I really appreciate your input on these matters as feel a bit out of my depth at the moment.

Thanks, Caroline

silvercar

I would stay put and take a 6 month contract until the baby is a few months old. Moving is costly and references have to be paid for. With your reduced income and OH's bankruptcy finding a new place may be difficult. It seems you have a good relationship with your landlord and they attend to repairs quickly - I would try and stay put.

It_can_get_better

Did you pay a deposit, and is it protected?

Cazza1

Yes we have a deposit and it is in the tenancy deposit scheme x

franklee

Cazza1 wrote: »

We used to go through a letting agent who managed the property but after a few years (in 2009) the LL's proposed that we let directly from them to save us the cost of renewing the tenancy with the agent (was really expensive) and I think so that they could see their extra 10% each month - having been here for over 2 years by that point we had built up a good trusting relationship. Which I believe we continue to have but they just seem fairly inflexible. I think this is because they live in another country though - so they manage the property from overseas but have a friend who we can turn to who lives near the property in the event that we need to (for example recent problems with window lock breaking - this was sorted out the same day).

Do you pay rent direct to a non-resident landlord? If so have you seen evidence they are registered with the non-resident landlord's scheme so they can receive rent with no tax deducted or if not do you deduct tax?
http://www.hmrc.gov.uk/international/nr-landlords.htm

Not a problem for you if you pay the rent to their friend in the UK. You don't want any unexpected expenses.

Cazza1

Hi there Franklee - thank you for your reply. We pay our rent directly into their account. Their names are on the account but I am unsure of the location of it. Do I need to check this? If its a british account but they live overseas does this make a difference? we definitely pay directly to them. Have just checked m online banking and there's no details on the list just the name of the account. Thank you I appreciate your help, Caroline

Caveat_Mortgagor

I wonder why the LL is so inflexible on the break or allowing to roll onto periodic tenancy.

Perhaps he wants the peace of mind of knowing he has tenants he can trust and wont have the cost and hassle of coming back to the UK to find new reliable 'cash cows', such as yourselves.

Even if he stayed overseas and used an agency, he would have to pay an initial finders fee and a percentage of every months rent again.

It might just be worth gently reminding your landlord of the hassle and costs he faces if he forces you out by being inflexible. He is probably well aware of this already, but hopes you haven't realised the strength of your bargaining position.

On the other side of the coin, it sounds like this potential move is being influenced by cost. Are you sure you wouldn't be better off staying where you are with no rent increase and no parasite agents fees to find?

Good luck!