Rental panic

Deborina

Hi all

Can you please advise? My partner & I recently were offered a house through a builder/local nht collaboration which is buy to rent. We will rent for 5 years then buy - we chose this option as years ago I was in a lot of debt, and had a trust deed. I completed it a year ago but my credit rating will suffer for a further 3 years. We currently rent privately.

On being offered the house we were advised we would need to move in mid march, and told that it was being offered subject to references from landlord and employers. We both have full time permanent contracts and have never missed rent so knew this wouldn't be an issue. There was also a credit chek involved which I knew wouldn't be good in my case, so I was upfront about my trust deed with the letting agent. We were told it wouldn't be a problem as I had been upfront.

We handed our notice in and need to be out of where we are on 15th march, the day we move in to new place. However yesterday we were told that we had failed our application due to my credit rating. We weren't offered any solutions as the lady in charge was out of the office so I've no idea where we go from here?!

We paid our deposit on the new place as requested.

Any advice?!

marliepanda

If you cannot have the new place (have you offered more rent or more rent upfront?) then I would be ringing your old landlord and asking very nicely to rescind your notice.

[Deleted User]

The only saving grace may be that the notice you handed in on your current rental is invalid. For notice to be valid (unless a landlord agrees otherwise) it must align with the end of the tenancy period.

1. What date did your current tenancy start on (eg: February 1st 2010)
2. What date did you hand your notice in on (eg: February 15 2014)
3. Has your landlord accepted your notice and confirmed that you can leave on March 15th?

If your notice was valid then your options are...

1. Find a new place to rent sharpish
2. Beg your landlord to cancel finding a new tenant
3. Beg the rent-to-buy people to reconsider

And for the future: never give notice until you are guaranteed to have somewhere to go.

Deborina

Thanks we were under the impression having paid a deposit that guaranteed the house though, as it said that the deposit was required to secure the property

marliepanda

Deborina wrote: »

Thanks we were under the impression having paid a deposit that guaranteed the house though, as it said that the deposit was required to secure the property

Nope. It secures it as in no one else can put their name down, but it secures it subject to your credit check and references, which you failed. Otherwise what would be the point in doing them, if the house was yours because of the deposit?

You should get the deposit back, but not the credit check fee.

Deborina

What was the point of the credit check after I had already told them of the trust deed and provided evidence of paying it? Why offer me the house when I had highlighted the issue?

marliepanda

Deborina wrote: »

What was the point of the credit check after I had already told them of the trust deed and provided evidence of paying it? Why offer me the house when I had highlighted the issue?

These are questions to ask them. However they are entitled to reject you based on that. It may be the people sorting the property at the front of house know nothing about the people who will own the house/lend the money and they are the ones who have back heeled the application

theartfullodger

Deborina wrote: »

......

We handed our notice in and need to be out of where we are on 15th march, the day we move in to new place. However yesterday we were told that we had failed our application due to my credit rating. ...

Your biggest problem is that you having given notice to landlord if you don't move out under (I think name correct) "Distress for Rent" Act 1737 landlord is entitled to charge double in some circumstances... (Landlord may not know this..)

Suggest you start begging with landlord...for a new tenancy. Sorry!

Deborina

Landlord fully aware of situation. Happy to accept withdrawal of notice but need to let him know by Monday if that's the route we taking.

ethank

Probably not what you want to hear, but you should never quit you current home until you have something formal telling you the day you will rent/buy new place.

Deborina

Thanks ethank, like I stated previously though, having told the letting agency of previous issues, and paid a deposit I thought that we did have confimation. Won't be so stupid in future.