Pease help with my finances! Don't know where to start!

2nd_time_mummy

Hi There

I own my property ex council flat, and have just being informed that I will have to pay a over £10K bill on necessary work on the building over the next 3 months, paralel to that I have purchased a house with my partner with the intension of renting it out back in Feb, tenant moved in payed first month sublet the 5 rooms of the property and refused to pay the rent from March up to date, since then I have built up a credit card dept of over £6K, have got legal aid in order to get property back but the situation is just dragging on a depts are getting bigger and bigger. I had a second baby back in March so going on Maternity leave just made things hard right now I am back at work so trying to come up with a master plan to get things back on track but finding it so fustrated as all my bills are basics and there is nothing I could cut back!
Yesterday I tried to remortgage my property as my fixed rate ended in May and since I have been on variable paying just over £700 per month with 13 years left, when I spoke to the bank Natwest everything was okay they were willing to lend me £15K so I could pay the council repairs and pay of my credit card and by extending the borrowing term to 15 year meant I would pay only £690 which is less then I am current paying for... so was very happy and celebrating :-) till this morning when I had a call from the bank saying that basis on affordabilty I can't have the money no more so back to square one! Feeling lost and depressed as I hate no being able to be in control of my expenditures and payments!

Can someone help me by giving me some guidance please!

Many Thanks for reading my dilema!

2nd time mummy

wannabee_in_credit

Hey,

Just bumping this for you. Have you completed a SOA? If you're willing to share people on here may advise where you can cut back.

ilovelondontown

Are you able to sell the flat and move into the rented property or vice versa?

If you're in position where you have more going out than coming in without any foreseeable changes in the future it sounds like you've bitten off more than you can chew and you might need to take a step back to owning one property and clearing your debts before you take on a buy-to-let property again.

Vikipollard

The five people who the rooms have been sublet to - who do they pay rent to? Surely you should be receiving the money from them? Can't see the original tenant can have a leg to stand on if you cut them out as they are refusing to pay you rent.

Change the locks.

But I'm a heartless c*w....

2nd_time_mummy

The tenants pay to the guy who rented the property and funnully enough he doesnt even leave there, the law says that I cant get them out I need to get a court order to get my property back... police doesnt want to get involved, hopefully I should have it back at the end of the month... if I will see any moneys from him with regards to the payment in arrears is another story... it is so unfair as he is making £2K on a property that doesn't even belong to him and still refusing to pay the rent which is £1.3 K / month. It is so unfair....

19lottie82

OP, you need to get your property back now.

Have you served him with a possession order?

Post in the renting, buying and selling board where people will be able to advise / help you with how to do this.

Tryingagainandagain

It will be quicker to start getting their rents in than trying to get out the 5 sub-tenants out - and also fairer on them, assuming they are innocent parties in this.

I'd go round to the house (take a friend or two for support) and explain to them that you own the property and that any monies paid to the tenant are being paid to the wrong person. Take any documentary evidence to support this.

Tell them that from today they either pay rent to you or they will be evicted. Explain that you will be taking legal action against the fraudster to recover back rents, but that if they pay over any monies to him in future then they are complicit in the fraud. Put it in writing - take a letter for each of them. Send or take a copy to your solicitor.

Make it quite clear that he has no power to evict them - you do.

Also at the time explain the ground rules of their tenancies - make them tenants rather than sub-lets and bring them on board. If you want them out later then make sure you give them plenty of time.

Then go back to the bank with the tenancy agreements and explain how you have solved the problem. Ask them to reconsider your loan in the light of additional income.

Just a suggestion.....................please keep us posted.

19lottie82

Tryingagainandagain wrote: »

It will be quicker to start getting their rents in than trying to get out the 5 sub-tenants out - and also fairer on them, assuming they are innocent parties in this.

I'd go round to the house (take a friend or two for support) and explain to them that you own the property and that any monies paid to the tenant are being paid to the wrong person. Take any documentary evidence to support this.

Tell them that from today they either pay rent to you or they will be evicted. Explain that you will be taking legal action against the fraudster to recover back rents, but that if they pay over any monies to him in future then they are complicit in the fraud. Put it in writing - take a letter for each of them. Send or take a copy to your solicitor.

Make it quite clear that he has no power to evict them - you do.

Also at the time explain the ground rules of their tenancies - make them tenants rather than sub-lets and bring them on board. If you want them out later then make sure you give them plenty of time.

Then go back to the bank with the tenancy agreements and explain how you have solved the problem. Ask them to reconsider your loan in the light of additional income.

Just a suggestion.....................please keep us posted.

I'm pretty sure this is wrong, and the OP can't do that.

Her contract is with the original tenant, not the sub tenants. Therefore she can't deal with them while the original contract stands.

Also, this may be illegal if an HMO license is not in place.

But again. this is best discussed in the housing part of the board.

2nd_time_mummy

I have served all the relevant notices prior to being able to get my property back and this is now with the cort, hearing date for mid of Sep... I am just frustated that someone can rent your place, stop paying the rent, sublet the rooms and as a huse owner we are powerless to do anything, meanwhile the bills keeps pilling in and the system stops you to go there and quick his buts off! In consequence of that I get into a massive dept and everyone involved included the estate agent who found the tenant are just really sorry!

19lottie82

I understand how frustrating this is for you OP, but unfortunately that’s the way things work, much in the tenants favour than the LL’s.



In response to your original question, as suggested, post an SOA (linked above) and we may be able to suggest how you can balance your finances or save some money here and there.



Good luck with your court case.

Tryingagainandagain

19lottie82 wrote: »

I'm pretty sure this is wrong, and the OP can't do that.

Her contract is with the original tenant, not the sub tenants. Therefore she can't deal with them while the original contract stands.

Also, this may be illegal if an HMO license is not in place.

But again. this is best discussed in the housing part of the board.

You are probably right. However I would argue that the tenant has breached the contract by failing to pay rent and by sub-letting. I hadn't thought of the HMO aspect:o

Agree that this would be better answered on the housing board but reading later posts the OP is not especially interested in this as she has it covered now.

I would hate to be in this position. People must feel so helpless.