Northwood - Guaranteed Rent

Foxy-Stoat_3

I enquired about a Northwood let last year, these are the figures they gave me:

They rent out my property for 3 years for £850 PCM
I would get £580 PCM for 11 months and for one month they pay £290.

I have to pay for council tax and utilities in void periods.

Northwood DO NOT become my tenant as THEY would have to pay the council tax and utilities.

Their figures do not work for a 2.49% residential CTL mortgage at 65% LTV, let alone a BTL mortgage at 75% LTV.

If you owned a few properties outright and you lived abroad then I dare say the figures/risk element would work well for you.

stator

Greco wrote: »

So to sum it all up: No idea who Northwood is (but had a look at their website and they seem simply too big for my liking). I never paid a penny for a property while on guaranteed rent with the agents I use.

Thanks for clarifying

MMM12

Ah Grecco - I thought you must of been at some super Northwood Letting Agent - in reality they are rubbish and as a landlord I advise people not to touch them...And as for lower risk which is why you pay so much - seriously by giving your house to them you are increasing risk of if being let out to terrible tenants and getting the house back trashed. I lost thousands and thousands on my poor little house because they don't care who is in it, or what they are doing, just as long as the money keeps coming in. They just aren't bothered at all

jjlandlord

Since the landlord would not let on an AST and often for a term of more than 12 months, and for the express purpose of allowing the tenant to sublet, there are a few very important things to check:

1. Would the insurance still be valid? Many would not.

2. Would that be a breach of the mortgage's conditions? It would for many mortgages.

3. The tenancy agreement would be provided by the tenant. Would the landlord understand all the terms and the law surrounding such commercial leases? It could be very worthwhile to have a solicitor advise and negotiate amendments.

Did all of you using such schemes check on these points before signing?