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Unlicensed HMO

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  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Licenses are there to provide the tenant with a safe place to live. If you move into an unlicensed HMO you are letting another landlord get away with putting tenants' lives are risk for money. If people refused to live in these unlicensed HMOs the landlords would go out of business.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    davidmcn wrote: »
    The "intending to sell" one seems a remarkably easy loophole - can't see any way of policing landlords who change their mind about selling as soon as the tenant is gone.

    I think the landlord has to supply some kind of evidence to the First Tier Tribunal of their intention to sell and I'm sure I read somewhere (but don't quote me on this) that if a tenant has to leave because the landlord went for an eviction using ground 1 and the tenant then discovers the landlord didn't make a serious effort to sell the property then the tenant can sue the landlord. I have no idea what kind of evidence the tenant would need, maybe new tenants moving in very quickly or marketing a 1-bedroom flat in Preisthill for £500k, in order to sue the landlord if in fact they can do that and it's not just a figment of my imagination.

    http://www.legislation.gov.uk/asp/2016/19/schedule/3/paragraph/1/enacted

    Edit: I'm not imagining it....hooray!

    http://www.legislation.gov.uk/asp/2016/19/notes/division/3/5/3/4
  • I do believe that the folks handling the lease are aware of the situation and realise it will be used as a HMO. Obviously it's not been talked about in explicit terms, but it's students currently in, we are a group of students ourselves, the flat has 4 beds and they know we are the 4 people moving in. I can only presume they're reasonably sure that they are safe from any legal hassle.

    We haven't been dealing directly with the landlord themselves, but rather with a factoring company acting on their behalf. They've been handling the whole thing.

    We're also not all named on the tenancy, just the two of us, although again they are aware it's the four of us who would be living there. We were told four names was unnecessary.

    You're right that it's concerning, but again, when I met the current tenants they only had positive words to say. They spoke of how they had a few issues while they were in, and they were fixed rapidly without any problems. Perhaps I should be, but to be honest I'm not too worried about that aspect of the whole thing, mostly just about how exposed we are and how liable we are should the council swoop in. What rights and extra levels of safety would an HMO license afford us that we don't already have as tenants exactly?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    I do believe that the folks handling the lease are aware of the situation and realise it will be used as a HMO. Obviously it's not been talked about in explicit terms, but it's students currently in, we are a group of students ourselves, the flat has 4 beds and they know we are the 4 people moving in. I can only presume they're reasonably sure that they are safe from any legal hassle.

    We haven't been dealing directly with the landlord themselves, but rather with a factoring company acting on their behalf. They've been handling the whole thing.

    We're also not all named on the tenancy, just the two of us, although again they are aware it's the four of us who would be living there. We were told four names was unnecessary.

    You're right that it's concerning, but again, when I met the current tenants they only had positive words to say. They spoke of how they had a few issues while they were in, and they were fixed rapidly without any problems. Perhaps I should be, but to be honest I'm not too worried about that aspect of the whole thing, mostly just about how exposed we are and how liable we are should the council swoop in. What rights and extra levels of safety would an HMO license afford us that we don't already have as tenants exactly?

    :eek::eek::eek::eek::eek:

    Do you understand what that means? It means that the two named on the tenancy agreement each have joint and several liability to pay the whole rent. It also means that you are knowingly signing a tenancy agreement and you will immediately breach the terms.

    On your own head be it. I do hope the property is not owned by Harpal Singh.
  • Okay. Yikes. If I was to reach out to the folks handling the lease and insist that we would sign it if all four of us were named on it, would that put us in a better position?

    Perhaps getting to the point where this is also a relevant question: we were told we had to pay a security deposit to ensure the flat was taken off the market (makes me think it was also being treated as a holding deposit, but I'm aware those are illegal in Scotland, and we were assured by the company the money would be put into one of the schemes). We've paid this before signing a lease. Would we be able to easily reclaim this money?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    I doubt it would put you in a better position because they don't want all 4 of you named on the tenancy agreement because then they would have to acknowledge that the property is being operated as a HMO without a licence.

    Yes, you are able to reclaim the holding deposit.

    http://www.reclaimyourfees.com/
  • Jane_B
    Jane_B Posts: 131 Forumite
    The two named on the tenancy will then be liable if there is an inspection and the 4 of you are found there!

    They will also be the only ones liable for keeping on top of payments,

    It is ridiculous to only have half those living there on the tenancy agreement.
  • The fact of it is we are short on time and this appeared to be a good quality flat - the desperation is high lol, we're due to move in days. Is there any real way forward, any changes we could perhaps request be made to any lease, or do you believe we should be straight-up pulling out at this stage.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    The fact of it is we are short on time and this appeared to be a good quality flat - the desperation is high lol, we're due to move in days. Is there any real way forward, any changes we could perhaps request be made to any lease, or do you believe we should be straight-up pulling out at this stage.

    At this stage you either pull out or accept that you'll be living in a hooky HMO.

    Just remember why HMO licensing was introduced in Scotland.

    https://www.bbc.co.uk/news/uk-scotland-glasgow-west-43640615
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    I would strongly suggest that you speak to your university's student housing office before agreeing to anything. While this may seem an ideal property there are so many issues being raised by your posts that if it was me I'd be looking for somewhere legitimate.
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