Landlord wants to take over all bills to get a mortgage

Jamohambo

Hi,

I am renting a 1 bed flat. I had been paying for all the bills but today I received a call from my landlord saying he would like to take over all the bills for about 2-3 months as he wants to take out a mortgage on the place.

I am not sure what to do, I have not been living in this place for very long but I really like it and don't want to cause any friction between me and the landlord.

Thanks

Comms69

Well the LL probably doesn't have consent to let or a buy to let mortgage, but it seems you'll be making quite a saving for 3 months, so why not?

madvicker

His request is not reasonable. I would refuse. While it would be nice not to have to pay the bills for 3 months, legally the bills are your obligation. Should the landlord miss a payment for whatever reason, you are the one in hot water. Further, if he is manipulating spending for the purposes of obtaining a mortgage then you could be shown to be complicit in mortgage fraud.

Politely refuse to do it.

Pixie5740

Jamohambo wrote: »

Hi,

I am renting a 1 bed flat. I had been paying for all the bills but today I received a call from my landlord saying he would like to take over all the bills for about 2-3 months as he wants to take out a mortgage on the place.

I am not sure what to do, I have not been living in this place for very long but I really like it and don't want to cause any friction between me and the landlord.

Thanks

The landlord doesn't need utility bills for the property in his name in order to secure a BTL mortgage. Does he think that's what other landlords do or is he going to apply for a residential mortgage for a property which is already let? Place bets now! Banzai!

Just politely decline.

Comms69

madvicker wrote: »

His request is not reasonable. I would refuse. While it would be nice not to have to pay the bills for 3 months, legally the bills are your obligation. Should the landlord miss a payment for whatever reason, you are the one in hot water. Further, if he is manipulating spending for the purposes of obtaining a mortgage then you could be shown to be complicit in mortgage fraud.

Politely refuse to do it.

You're talking nonsense


The bills are the responsibility of whoever chooses to accept it.


Plenty of properties are bills included, the OP wouldn't be complicit in anything.

saajan_12

No problem if he wants to take out a BTL mortgage to raise funding: it wouldn't affect your tenancy. If he wants to take out a residential mortgage on the property when he's not living there, then a) that's mortgage fraud and b) the lender wouldn't know about the tenancy so may try to repossess and remove occupiers if the LL doesn't keep up repayments.

To get a BTL mortgage, the LL may need to have a valuer around but no reason to need bills in his name.. that suggests he's trying to create evidence he's living in the property to get a residential mortgage.

The LL can't force you to transfer bills, nor can they evict you any quicker because of it. However once your fixed term ends if you're within one, then they could evict using a Section 21 notice, which would take ~3-6 months. HAving said that, it would cost the LL in a rental void, having to find new tenants etc so wouldn't be worth whatever they're trying to benefit with the mortgage trickery.

You have no obligation to transfer bills.. as tenant you're responsible for bills and have the right to choose supplier etc. However I understand not wanting to sour relations, so in your place I'd make an excuse saying you are in a fixed contract for bills.

G_M

We are all 90% sure why the landlord is doing this, but of course we cannot be 100% sure.


Similarly the OP cannot be sure. So 'complicity' in fraud is not applicable.


LL has asked tenant for a change to the terms of the tenancy, in this case temporarily. If the tenant is content with the altered terms I see no problem (for the tenant).


Get it formally confirmed in writing though.

[Deleted User]

Hi,


ask him to let you off with rent as well for the period.

G_M

saajan_12 wrote: »

........... as tenant you're responsible for bills and have the right to choose supplier etc.......

Only if that is what the tenancy agreement says.


If the TA is amended by mutual agreement to say something different, then the tenant would no longer be responsible for bills.


There are many tenancies where bills are included in the rent. Granted, a temporary inclusion of bills within rent is unusual, but legally perfectly acceptable. Just as any other temporary arrangement can be made eg a reduction in rent during, say, refurbishment.

madvicker

Comms69 wrote: »

You're talking nonsense


The bills are the responsibility of whoever chooses to accept it.


Plenty of properties are bills included, the OP wouldn't be complicit in anything.

Yes, properties do come with bills included, but this does not appear to be the case here - the tenancy agreement is likely to indicate that the tenant is responsible for the bills. The OP has already accepted responsibility for the bills - so he is legally obliged for them now. Unless this obligation is transferred to the landlord through the utility companies AND the tenancy agreement, then this will not change and the OP is taking on the risk of the landlord not paying.

In reference to complicity - see the post above about BTL vs Residential mortgages.

So, no. I am not talking nonsense - you are simply giving bad advice.

Rosemary7391

Legal or not, I still wouldn't touch this with a bargepole. It just sounds very dodgy, especially if the letters are to go to your address.



Just say something like you're in fixed contracts so can't switch. If you receive letters for the landlord return them to sender.



I'd also check everything else checks out. Deposit registration, gas safety. If you're in Scotland check that your LL is registered.