We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Complicated Letting arrangement - Views?
merlin51
Posts: 16 Forumite
I'm an experienced landlord but have been presented with the following scenario by my letting agent for a new let of a flat. I've got my own view but would be interested to see how others see it, or if I've thought of all possible ramifications. Here's the story...
Mr A, an overseas businessman wants to rent a flat for his adut daughter, Miss A, who lives and works in UK. Mr A's UK businesses are handled by Mr B through Mr B's company Xltd. Mr A is Mr B's only client.
It is proposed that Xltd is the tenant for Mr A's personal reasons (said to be tax related). The usual credit checks reveal that Xltd is essentially a shell company, only has Mr B and Mrs B as directors and no money or assets.
Because of the failure of the credit check the offer has been made of 6 months rent paid up front, with the assurance that 6 months more will be paid further down the line.
So.....what would be going through your mind when presented with this proposal?
Mr A, an overseas businessman wants to rent a flat for his adut daughter, Miss A, who lives and works in UK. Mr A's UK businesses are handled by Mr B through Mr B's company Xltd. Mr A is Mr B's only client.
It is proposed that Xltd is the tenant for Mr A's personal reasons (said to be tax related). The usual credit checks reveal that Xltd is essentially a shell company, only has Mr B and Mrs B as directors and no money or assets.
Because of the failure of the credit check the offer has been made of 6 months rent paid up front, with the assurance that 6 months more will be paid further down the line.
So.....what would be going through your mind when presented with this proposal?
0
Comments
-
-
I'm an experienced landlord but have been presented with the following scenario by my letting agent for a new let of a flat. I've got my own view but would be interested to see how others see it, or if I've thought of all possible ramifications. Here's the story...
Mr A, an overseas businessman wants to rent a flat for his adut daughter, Miss A, who lives and works in UK. Mr A's UK businesses are handled by Mr B through Mr B's company Xltd. Mr A is Mr B's only client.
It is proposed that Xltd is the tenant for Mr A's personal reasons (said to be tax related). The usual credit checks reveal that Xltd is essentially a shell company, only has Mr B and Mrs B as directors and no money or assets.
Because of the failure of the credit check the offer has been made of 6 months rent paid up front, with the assurance that 6 months more will be paid further down the line.
So.....what would be going through your mind when presented with this proposal?
It would be a commercial lease, which would have additional complications.
Decline. Mr B can be a personal guarantor if they're that confident....0 -
Why can Miss A not rent the property in her name as she is living and working in the UK?0
-
If Miss A is working, why isn't she the tenant? (by all means have a guarantor and/or rent upfront too if it's being offered!)0
-
Certainly sounds dubious one way or another and I'd personally not want to get involved as it could create all kinds of problems if things went badly with them.0
-
It may be perfectly above board, but I personally would only let a property to the individual(s) who were going to occupy it. Avoid.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
-
Why get involved in the tax dodges of random foreigners?
If Miss A passes your usual credit checks and is in secure employment by all means rent to her in her name.They are an EYESORES!!!!0 -
This is actually a very common scenario for wealthy individuals. They will often put their assets into a family trust, which will then own companies (such as X Ltd).
The thing that really matters to the landlord is whether the tenant can pay the rent.
The only part I would be worried about is the fact that X Ltd is a shell company.
If X Ltd were to pay the last 6 months of the tenancy up front, or were to provide a substantial deposit, I'd be happy with that.0 -
I would run away quickly! What happens if they decide not to pay and you have to sue the company to evict her, same if she sublets, destroy the property etc...0
-
steampowered wrote: »This is actually a very common scenario for wealthy individuals. They will often put their assets into a family trust, which will then own companies (such as X Ltd).
The thing that really matters to the landlord is whether the tenant can pay the rent.
The only part I would be worried about is the fact that X Ltd is a shell company.
If X Ltd were to pay the last 6 months of the tenancy up front, or were to provide a substantial deposit, I'd be happy with that.
Assets do not equal income though....0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards