A question for landlords.

YoungBlueEyes

A wee while ago I posted about my renting friend being a bit stuck and how I was able to help her because of the threads I've read on here. Well her landlady has been in touch again and this time it's not ringing any bells. My question is - for what reason would a bank have to value a house periodically?

Background. My friend is nearly 80 (but young and vibrant) and has rented from her landlady for many years, poss a decade ish. She volunteers part-time in a charity shop and lives on her state pension. Landlady inherited her mother's (mortgage free) house when she passed and has rented it to my friend since then. Landlady won a good bit on the lottery and bought other properties which she also rents out.

To give you a picture of the landlady - we all used to be friends and go drinking/socialising/on holiday together. Then LL won the lottery and really changed. She and my friend still socialise and are basically on good terms. The issue I helped with by remembering things I'd read on here was this - my friend pays her rent on the first of the month. Landlady mentioned the rent was going to have to go up, my friend said it couldn't be much because she really couldn't afford much more. Whilst out drinking she mentioned the raise would be have to be £100pm. Then a week later - on Christmas eve - my friend got a text that it would have to be another £140 (so £240 total), starting on 1st of Jan. Her rent did end up a little higher and I pay that extra for her. So that's the landlady. 

 New issue. Landlady has said there'll be someone coming from the bank next wednesday morning to value the house so she needs to be out all morning. When asked why she said "it's just a thing banks have to do every now and again". Are you selling up landlady? "It's just a bank thing".

I've said to start looking for another place to live because I think that's what's coming. Given her past performance I doubt the landlady will issue a legal S21 but that's another guess.

So that's the background and the question. Do banks value houses periodically? Is this A Thing?

Sorry that's longer than I meant it to be!  Thank you for any advice.

Edit - I don't know if the house is still mortgage free, I haven't downloaded the deeds.

theartfullodger

Does anyone have copy of tenancy agreement (original?) which just might, but very unlikely, may grant permission to valuation visits .  Bank us likely to be mortgaging or remortgaging (entirely legal, but possibly not permitting valuation visits) 

Without that your friend does not have to permit it.  Later when on computer I will try and give a link to something which covers this.

However, does she wish to fall out with landlady?

When new owner gained ownership did she provide notices compliant with s48 & s3 (assuming England)?

If not, no rent due -s48 - and possible fines and criminal offence -s3).

Basically giving and address in England or Wales for tenant to serve any notices in landlord (s48) and her ACTUAL address - anywhere in the world (IE not care of ....) -s3.

It's likely that being an old tenancy new owner won't have all necessary paperwork to evict using section 21 .

Any repairs outstanding?

Good luck!

propertyrental

1) I can't see your previous thread - it's usually better to keep all related threads in one place.
But if all the LL did was send a text and speak face to face, there was no need to pay the increased rent.

There are laws about how and when rent can be increased.

2) there are basically 2 likely reasons for a Valuation
a) sellng
b) re-mortgaging - this is currently very common as mortgage rates are rising fast so borrowers are searching out cheaper lenders where they can.
c) a third less likely possibility is a rental valuation with a view to a further rent increase. This would be done by a letting agent, so again, ask who they are. If so, make sure any new rent is done properly this time!

If a) is the answer,
c) the Valuation is likely to be done by an estate agent, not a bank - so ask who they work for when they come round.
d) the owner may sell with the tenant in situ. No change for your friend except who the rent goes to.
e) If owner wants to sell 'with vacant possession', whether she can evict and how long it will take, and what the correct process is (note the rent answer above!) will depend on factors relating the the type of tenancy

No reason to be out when they come. In fact advise her to stay in! LL cannot insist she goes out.

Since clearly the LL has a key (to let Valuer in in your friend's absence), also advise her to change the lock. Keep the old lock and replace when she eventually moves out. It's cheap, and easy to change.

https://www.youtube.com/watch?v=VXAo7zSN-9o

https://duckduckgo.com/?q=utube+changing+mortice+lock&t=brave&iax=videos&ia=videos&iai=https://www.youtube.com/watch?v=IIPyqtOmprE

YoungBlueEyes

Thank you both for such detailed replies. 

Artful - she doesn't want to fall out with landlady. She also doesn't want to find somewhere to live (although that may be out of her hands). She does have her original agreement, no mention of this specifically. She doesn't want to be a beggar about it, she's happy to have a morning out. England yes. No outstanding repairs.

Propertyrental - my other thread https://forums.moneysavingexpert.com/discussion/6433185/a-huge-thank-you#latest  
So she may be getting a mortgage on it, assuming it's still mortgage-free. If she was selling it would be an EA wouldn't it, banks don't value for market. She is sure landlady said bank. 

I think my friend is just trying to get ahead. If it's going to be sold she'll poss need to be out (assuming S21 is right etc). She'll struggle as a widowed older lady and really isn't looking forward to that possibility.

Maybe I'll go round to hers 'for a coffee' on wed, so I can make sure of what I'm hearing! 

RAS

Was she sent formal notice of the change of ownership, as per artful's query? Deposit still  protected?

And any over 55's accommodation locally?

Gavin83

theartfullodger said:

When new owner gained ownership did she provide notices compliant with s48 & s3 (assuming England)?

If not, no rent due -s48 - and possible fines and criminal offence -s3).

Basically giving and address in England or Wales for tenant to serve any notices in landlord (s48) and her ACTUAL address - anywhere in the world (IE not care of ....) -s3.

It's likely that being an old tenancy new owner won't have all necessary paperwork to evict using section 21 .

I'm not sure there has been a change of ownership. I read it that this property wasn't rented out until the current owner acquired it and was previously lived in by her mother so therefore the tenant has only had the one landlord. Might need clarifying from the OP.

YoungBlueEyes

Gavin is right. It was landlady’s mother’s house, my friend has been the only tenant. No change of ownership, as yet. There is over 55’s accommodation but not very locally, another town but fairly close.  

I’ve spoken to my friend. Her paperwork is up to date (gas cert etc) and deposit is protected. 

Just noticed the change your locks vid. Thanks propertyrental  

Murphybear

If her state pension is less than £201.05 she will be eligible for Pension Credit which will entitle her to get full housing benefit and council tax benefit. If it is more then she will still get most of it paid.  I understand some older people can be uncomfortable with benefits but they are entitled to them and it will help improve their quality of life, better food for example.  I live in sheltered housing with 30 other people and they often bring their issues to me as they know I understand the system (and am very helpful)

.  Both Citizens Advice and Age U.K. are generally very helpful and there are benefit checkers which are useful.

YoungBlueEyes

Thanks Murphybear, very helpful   I don't know how much pension she gets tbh. Me and my laptop will go for coffee on Wednesday and see what transpires.

When I was helping her last time and I was dragging up posts from memory, one of the things was offer something you can afford - even if it's not much but it shows willing. She said she could go another £10pw but she couldn't really afford that, so I put £100pm in her account now and she's ok.

She's the sort that would be very reluctant to accept benefits, but she might have to swallow her pride now.

badger09

@YoungBlueEyes
You're a very good friend👏🏻

bouicca21

Aside from any other issue, I wouldn’t want to be out when a stranger was poking about my home.