Renting when not working but using savings (not claming benefits).

JeLaw

I'm considering renting a new flat but I'm not currently working due to ill-health.

I don't claim benefits as I'm living off savings. I'm currently renting (private tenant) and would be looking for another private let. My current place is quite expensive so I'm thinking it would be sensible to move to a cheaper area.

I haven't moved for quite a few years so I'm out of practice. I understand that many places won't accept tenants on benefits but I'm not sure how landlords would view someone in my circumstances.

I'm aware that some might want rent upfront - perhaps 6 months. I would consider doing that but I'm a bit concerned it puts me at risk, for example if the landlord is behind with their mortgage payments.

Any suggestions as to what I could do to protect myself? Does the Land Registry show if the owner is in mortgage arrears? (I know that wouldn't help if they were up-to-date at the time I moved in and then later fell behind).

SerialRenter

Whilst you're in a fixed term, you are safe assuming you don't fall behind with rent (which you can't if you pay up front!).

Even if the house is repossessed by the bank, this would mean the bank would become your landlord. though they will likely seek to evict once out of the fixed term.

However it does become more complicated if the landlord never had permission to let.

You can read more here:
http://england.shelter.org.uk/get_advice/repossession/about_repossession/repossession_by_a_landlords_lender

You can also check if your landlord has permission to let:
https://forums.moneysavingexpert.com/discussion/1377883

Land_Registry

JeLaw wrote: »

Does the Land Registry show if the owner is in mortgage arrears? (I know that wouldn't help if they were up-to-date at the time I moved in and then later fell behind).

No we don't - we simply record the existence of the mortgage as a legal charge on the title for the property. No financial details are shown and the register simply refers to the date of the mortgage and the lender's name and contact address for our use.

JeLaw

Thank you both for your replies.

So I guess I just need to ensure it's a buy-to-let mortgage, and it's helpful to know that I can check that on the Land Registry. It's a shame I can't find out whether the mortgage is in arrears but I suppose there's always a risk of having to move out after 6 months anyway for other reasons (landlord selling up, increasing rent by too much for me, bad neighbours, etc, etc).

Edited to add. Any comments from landlords/landladies on how they might view someone in my situation (not working but not claming benefits) would be welcome. It would be good to get your perspective before I start looking. I don't actually have to move but would prefer to find somewhere cheaper, not least because my savings are meant to be for a deposit to buy (hopefully) one day!

Guest101

JeLaw wrote: »

Thank you both for your replies.

So I guess I just need to ensure it's a buy-to-let mortgage, and it's helpful to know that I can check that on the Land Registry. It's a shame I can't find out whether the mortgage is in arrears but I suppose there's always a risk of having to move out after 6 months anyway for other reasons (landlord selling up, increasing rent by too much for me, bad neighbours, etc, etc).

Edited to add. Any comments from landlords/landladies on how they might view someone in my situation (not working but not claming benefits) would be welcome. It would be good to get your perspective before I start looking. I don't actually have to move but would prefer to find somewhere cheaper, not least because my savings are meant to be for a deposit to buy (hopefully) one day!

Whether you claim benefits or not is really irrelavent. You could not be claiming today, and be claiming tomorrow.

the fact you are paying upfront will probably mean you are ok.

JeLaw

Guest101 wrote: »

Whether you claim benefits or not is really irrelavent. You could not be claiming today, and be claiming tomorrow.

the fact you are paying upfront will probably mean you are ok.

I agree with you. People are made redundant and people do get sick. I did have to claim benefits whilst renting once. Some years ago now and at the time it wasn't as hard to find a landlord who would accept DSS claimants. I had to stop work because of my illness and claimed disability and housing benefits.

I've also claimed part housing benefit when I was working but on a low wage. It wasn't for that long and I always paid my rent on time, but I've been given to understand that many landlords will refuse to offer a tenancy to someone on benefits.

I suppose I should be okay although I'm hoping I won't be asked to pay as much as 6 months upfront. It just puts me in a slightly more vulnerable position but needs must. I'll see what happens when I start looking.

dimbo61

I have no Income but can pay 6 months rent up front GREAT until 6 months are up Then What!!!
Sorry I have no money and am now claiming Housing Benefits which may take ages to come through.
By the way the HB will only pay £80 a week and the rent is £100 and I will have to make up the difference ? "From where you have no income"
Employer reference ( NO JOB)
Glad you are saving for a deposit but that will not happen without a JOB.
Savings are going down every month

dimbo61

If the Landlord is behind with his BTL mortgage he/she is an idiot who has rented out to the wrong tenants or is stupid with Money.

How will you ensure that it is a BTL mortgage on the property, Lots of Landlords rent out properties with Consent To Let on residential mortgages.
If a letter drops through the door from the courts or Mortgage lender Then get worried

JeLaw

dimbo61 wrote: »

I have no Income but can pay 6 months rent up front GREAT until 6 months are up Then What!!!
Sorry I have no money and am now claiming Housing Benefits which may take ages to come through.
By the way the HB will only pay £80 a week and the rent is £100 and I will have to make up the difference ? "From where you have no income"
Employer reference ( NO JOB)
Glad you are saving for a deposit but that will not happen without a JOB.
Savings are going down every month

Thanks for your comments. I appreciate all advice but want to point out that I pay rent at the moment. The reason I'm looking to move is precisely so that I don't end up in the situation you describe above.

If I move someone cheaper (I don't live in a particularly cheap area), I'll be less likely to run out of savings. I should recover from my period of ill-health (it's an ongoing condition that flares up every so often) well before that happens but it's good to be prepared for the worse. Not to mention that once I'm well I'd rather have more money to save for a house deposit (to buy at some future stage), and this will be easier if I move to a cheaper area.

I suppose I'm luckier than many people because I do have freelance work opportunities but can't currently do anything due to my health. I'm lucky in that I have built up some good work contacts and do have something to go back to once I recover.

Having said that I don't know what you think people with health problems and disabilities should do. They're not all "fakers" and many want nothing more than good health and a job. Not always possible. My condition flares up and usually I'm fine to work again after a fairly short period. But I know I'm lucky and not everyone is.

I'm also lucky enough to have savings to cover me through my period of ill-health. I don't have a huge amount but it would be enough to see me through the waiting period for housing benefit if the worst happened. I can apply for housing benefit once my savings go below a certain level. I wouldn't get the full amount because of my savings but it would ensure I wouldn't run out of money before any benefit was processed.

I don't have to move but want to so that my savings don't run out.

I plan to cover all bases and intend to check the LHA amount for wherever I move, but I should be working again in a few months anyhow.