Renting with an IVA

LABee

I'm 6 months into an IVA and need to move house when my current tenancy ends in the spring. I have been renting my current home for 5 years (following sale of the marital home) and have never missed rent payment. Unfortunately due to illness I have recently had to give up work and claim benefits (ESA and Housing Benefit, which with DLA entitle me to Severe Disability Premium so I have a reasonable income) but all being well plan to resume paid training in September.

In the past I have paid 6 months rent in advance and seemingly passed the credit check despite being £24k in debt and not meeting minimum repayments. Having read that some landlords will not accept tenants with IVAs I am concerned that despite taking the matter in hand and having reduced my debt to £18k I am now deemed a greater risk.

Any advice as to how I can approach letting agents with my situation?

Pixie5740

LABee wrote: »

I'm 6 months into an IVA and need to move house when my current tenancy ends in the spring. I have been renting my current home for 5 years (following sale of the marital home) and have never missed rent payment. Unfortunately due to illness I have recently had to give up work and claim benefits (ESA and Housing Benefit, which with DLA entitle me to Severe Disability Premium so I have a reasonable income) but all being well plan to resume paid training in September.

In the past I have paid 6 months rent in advance and seemingly passed the credit check despite being £24k in debt and not meeting minimum repayments. Having read that some landlords will not accept tenants with IVAs I am concerned that despite taking the matter in hand and having reduced my debt to £18k I am now deemed a greater risk.

Any advice as to how I can approach letting agents with my situation?

All letting agents can view when they credit check you as part of the referencing process are your public credit files. Your public credit files show CCJ and insolvency. As an IVA is a form of insolvency they will be able to see it. If previously all you had were defaults then a letting agent would be none the wiser about them.

Your best option is to be upfront about the IVA before handing any money over for referencing. When you do have to pay referencing fees find out under which circumstances the fees can be kept and when they can be refunded....GET IT IN WRITING.

Why will your current tenancy end in Spring? Do you mean that the fixed term will end or has the landlord served some kind of notice (notice is notice that the landlord might go to court to get a possession order not that you have to move out by that date). You will find it easier to rent a new home if you can wait until you are working again in September.

LABee

Thank you for your reply.
My 12 month tenancy is due for renewal in April and for personal reasons I wish to move house. My landlord has not sought possession and by all accounts is very happy with me as a tenant (house is well looked after and rent always paid on time).
My concern with waiting until September is that I will be part way through a new 12 month tenancy if I serve two months notice to end it and then risk losing my (substantial) deposit while the landlord 'seeks a new tenant'. Having been there 5 years it would not be beyond the wit of a landlord to take the opportunity to redecorate and upgrade (eg new bathroom badly needed which I have requested and been ignored) at my expense. This happened to a friend recently and to be honest the property didn't really need it (I know the LL socially and he was moving into it himself!)

Pixie5740

LABee wrote: »

Thank you for your reply.
My 12 month tenancy is due for renewal in April and for personal reasons I wish to move house. My landlord has not sought possession and by all accounts is very happy with me as a tenant (house is well looked after and rent always paid on time).
My concern with waiting until September is that I will be part way through a new 12 month tenancy if I serve two months notice to end it and then risk losing my (substantial) deposit while the landlord 'seeks a new tenant'. Having been there 5 years it would not be beyond the wit of a landlord to take the opportunity to redecorate and upgrade (eg new bathroom badly needed which I have requested and been ignored) at my expense. This happened to a friend recently and to be honest the property didn't really need it (I know the LL socially and he was moving into it himself!)

There is absolutely no need whatsoever to sign a new 12 month tenancy agreement in April. Once your fixed term contract ends you automatically start a periodic tenancy the following day which would give you the flexibility to leave in September.

Read G_M's Guide to Ending/Renewing an AST for further information.

Pixie5740

Given your comment about your deposit and the landlord trying to use it to redecorate you should also read G_M's Guide to Deposits.

EachPenny

Depending where you live and what the rental market is like, being on benefits alone might be enough to make it near impossible to find a private landlord willing to have you as a tenant.

Friends of mine who are working but get housing benefit have barely made it through the door of letting agencies before being told 'no' - and they were in a financial position that allowed them to pay several month's rent in advance if that were necessary.

I would be very reluctant to give notice - or even give your current landlord any indication you are thinking about it - until you know for sure you'll be able to find somewhere else to live which is better than what you have now.