loan to pay rent

fly53

thanks.

so would she still have to pay for the entirety of the tenancy?
or untill a new tenant is found?

phillw

fly53 wrote: »

is she taking a huge risk? or wont the lender be bothered unless its paid?

It's fraud & like all crimes, it's only a risk if you think you'll get caught. If they didn't care what the money was being used for then they wouldn't ask, your friend lied because she thought they would care.

fly53 wrote: »

any advice would be great

Don't be financially linked to this person at all, or you could end up with a CIFAS marker & find it impossible to open bank accounts etc.

https://www.uk.equifax.com/publicsectorgateway/webapp/online-help/CIFAS.htm

Category 3 – Application Fraud, Facility Granted
Material falsehoods in the personal information provided in the application/proposal.

Moving it into another persons account is also really suspicious if she actually gets caught. It would sound way more plausible if she just had the money paid into her account and then she decided not to go on holiday, because her friend can no longer afford to go with her. She could move it into a savings account in her own name and then transfer it back each month to pay the rent.

anhmvbds1

Take a look at the policies before signing the contract.

Voyager2002

fly53 wrote: »

thanks.

so would she still have to pay for the entirety of the tenancy?
or untill a new tenant is found?

That is up to the landlord. Many landlords do stop charging rent once they have a new tenant, but that is goodwill rather than a legal right.

Comms69

MEM62 wrote: »

Maybe but there are the Landlord's legal costs and she will still be liable for rent to the end of the tenancy. Poor advice in my opinion.

The LL's legal costs in the small claims court are limited, the interest is going to be a lot more than the £200 odd costs

System

fly53 wrote: »

But surely facing eviction is the worse possible scenario?

Eviction which takes several months to happen, with a landlord not even able to issue a notice until there is at least 2 months in arrears, isn't as bad as a criminal record for fraud which will completely exclude you from pretty much any job in finance for many many years, would make it harder to find a job for a few years anywhere else and which would show up on any CRB check for a few years and an enhanced one for life.

If you were an employer would you hire someone with a conviction for fraud and be happy to have that person at your company surrounded by things of value and maybe even having access to money? A conviction for fraud merely states they've been found guilty of an offence, it does not give a background to what the criminal did and who is going to believe what someone convicted of fraud tells them? That would be the situation your friend is in.

I can see her point.

I can't. But then again I can see what the potential consequences are.

fly53

thanks for the response.

so her best bet is either to budget like there's no tomorrow or speak to the LL over some kind or surrender of tenancy.

I agree the lender is unlikely to see where the cash is going unless they actually look into the account, but that's an awful lot of time looking over your shoulder hoping that they wont.

as for eviction. wont that screw here chances of renting elsewhere should she choose to in the future?

thanks

Voyager2002

fly53 wrote: »

thanks for the response.

so her best bet is either to budget like there's no tomorrow or speak to the LL over some kind or surrender of tenancy.

I agree the lender is unlikely to see where the cash is going unless they actually look into the account, but that's an awful lot of time looking over your shoulder hoping that they wont.

as for eviction. wont that screw here chances of renting elsewhere should she choose to in the future?

thanks

Her best bet is not to take a holiday that she cannot afford.

The loan for her rent: presumably that is from a friend or relative -- a commercial lender might lend for a holiday but not for rent, since people who cannot afford their rent are obviously struggling and so are a bad risk. I am sure that a friend would know if she went on holiday, and that would ruin the friendship for sure.

Of course she should budget, and perhaps ask her landlord if there is any way to surrender her tenancy early.

Dobbibill

fly53 wrote: »

thanks for the response.

so her best bet is either to budget like there's no tomorrow or speak to the LL over some kind or surrender of tenancy.

She really does need to budget - if she needs to borrow for rent then something is seriously wrong.

A SOA should help her to do that.

Rent needs to be towards the top of the list with other commitments such as council tax, heat and food.

Hopefully your friend will have learned a very valuable lesson about budgeting while being in the situation with an option to go back to their parents, at another time of life that may not have been possible.

as for eviction. wont that screw here chances of renting elsewhere should she choose to in the future?

Hopefully talking to the LL can prevent this - neither tenant or LL would want to go down the 'eviction' route if possible.
A mutual agreement of some sort will be far more beneficial to all involved than court costs, time and bother.

She may be able to rent somewhere else in the future, either with the same LL or a different one.

JuicyJesus

This is just a catastrophically stupid idea. There isn't any other advice I can give, this is just a really bad idea with no redeeming qualities and investigating a way of surrendering the tenancy early and then cancelling the loan is the best thing to do. There is simply no way that this is a good idea. None.

I do wonder what else the OP's friend lied about on their loan application, since someone who can't afford rent would almost certainly not pass affordability checks for a personal loan.