Can't afford house any more - what to do with lodger/tenant?

GDB2222

Badger_Lady said:

hazyjo said:

I know money shouldn't be our main focus in life, but 'kindness' is a tough lesson - you could have been charging full rent and prob getting more from one tenant, and you should be selling for market value, not 25% less. Fine if you're loaded, but not at the detriment of your own finances/roof over your head.

I could, yes. I'm far from loaded but I remember being poor, and I work with some of the world's poorest people... I think it's my responsibility to help as much as I can.

I wonder whether it’s worth your while to come back to your home, to see if you can help the lodger/tenant move on?

Failing that, tell the lender to repossess the property, and leave them to sort it out. Do this now, rather than waiting until you have completely run out of money in September.

They may well do a better job than you of sorting this mess out, as they have more powers and much more experience, and there may even be a bit of money left over for you when they are finished, as they will sell for full value. 

They won’t chuck the lodger out on the street, but they will resolve the problem. Meanwhile, you can get on with your life, free of all this stress. 

deannagone

I am afraid an awful lot of your letter won't help the tenant nor yourself.  I understand why you have written in the way you have, and it does sort of cloud the issue a little.., but at the end of the day, the tenant has been living there without the LL being present (you) since they moved in.  The council will not give them any priority for housing unless they are deemed in 'housing need' (i.e. have a disability/vulnerability).  Some councils will offer a loan/grant for first months rent and deposit.  But that is the most help the tenant will get.., they will not get social housing.  There's a small posibility they might be given a hostel room short term but they are usually not very pleasant.

I am afraid the council won't give a damn what your motivations or intentions were.  The fact is that you left the tenants alone in the house, charged rent however low, didn't return, so no matter what you agreed with the tenants or how decent a person you are.., they are tenants.  And do have certain protections.  They are also likely to tell the tenant to not leave until legally they have to.  After you (or any new owner if you manage to sell the place) have followed the eviction process.

As already suggested, you may be able to sell the house with a tenant in situ, but it will reduce what you can get for the house, particularly in view of the low rent agreed to and the long process the new LL/owner would have to go through to get possession themselves.

If you have an interest only mortgage, and aren't going to make a lot of money from selling the home, I would be looking at what happens in a few months when you can no longer afford the house i.e. assess the practicalities of the worst scenario.  This will help clarify things.

I'm afraid avoiding making decisions because doing something will cause discomfort (to the tenant) can be the worst.  It delays things and builds up stress (for both you and the tenant), and you are in a worst situation now than you were when this started.

I apologise for being so negative but believe 'facing facts' can be helpful with decision making. 

There's help and there's avoiding resolving/facing ethical issues.  I was once on one of these team building days (this is a true story).  Two teams. Left foot tied to one plank, right to the other (two planks per team).  One team was 'nice' and decided they'd move with free will, no one in charge, making decisions etc. The other team called out left/right we all co-ordinated, and we got to the end of the course in no time.  The other team would still be trying to move forwards at all. But they didn't risked offending other team members because someone took control (which no one wanted to do on that team). I learned a lot that day ha ha.

The remaining tenant has had years of low rent.., that's enough of a kindness.  Now its time to take a deep breath and do the hard thing that you've been avoiding.  The bank will probably force you to anyway, better it happens under your control if you can get that control out of the situation.

Sorry, I've written a book.

housebuyer143

I do tend to agree with others that if the tenant hasn't gone by next month you just accept that it's going to be repossessed. The bank will likely sell it for more than you are and you might make something on it after all said and done. 
Not great but it might be the least stressful option. 

Do really stress this dire situation to the lodger though when offering money for first month's rent in a house share or something.  Maybe you guilt him into leaving of his own accord. 

Badger_Lady

deannagone said:

The council will not give them any priority for housing unless they are deemed in 'housing need' (i.e. have a disability/vulnerability).  Some councils will offer a loan/grant for first months rent and deposit.  But that is the most help the tenant will get.., they will not get social housing.  There's a small posibility they might be given a hostel room short term but they are usually not very pleasant.

I believe he has learning difficulties which make him vulnerable. His friend, the other lodger, has been effectively taking care of him for the last 20 years but has now got fed up... which is really a shame for me too because he was my real point of contact for them both.

This man does genuinely need support. I don't believe he's capable of organising himself and, now that he's lost his friend, is throwing himself totally at the mercy of the council.

GDB2222

Badger_Lady said:

deannagone said:

The council will not give them any priority for housing unless they are deemed in 'housing need' (i.e. have a disability/vulnerability).  Some councils will offer a loan/grant for first months rent and deposit.  But that is the most help the tenant will get.., they will not get social housing.  There's a small posibility they might be given a hostel room short term but they are usually not very pleasant.

I believe he has learning difficulties which make him vulnerable. His friend, the other lodger, has been effectively taking care of him for the last 20 years but has now got fed up... which is really a shame for me too because he was my real point of contact for them both.

This man does genuinely need support. I don't believe he's capable of organising himself and, now that he's lost his friend, is throwing himself totally at the mercy of the council.

Thanks for explaining. It certainly sounds like the council do have an obligation to support him, but only if he is in imminent danger of being homeless. Currently, he is not, and as they have so many other cases they will not do anything. 

If you write to the council, just say that he is a lodger and you have given him notice to leave on (insert date), as you are selling the house. Let them argue, if they want to, that he is a tenant, but don’t give them ammunition to do so.

Frankly, I think you should let the lenders sort this out, and keep any money you still have so that you can help the lodger financially if the time comes that that help is needed. The lender will be much better than you at persuading the council that the lodger is homeless. 

Badger_Lady

GDB2222 said:

Badger_Lady said:

deannagone said:

The council will not give them any priority for housing unless they are deemed in 'housing need' (i.e. have a disability/vulnerability).  Some councils will offer a loan/grant for first months rent and deposit.  But that is the most help the tenant will get.., they will not get social housing.  There's a small posibility they might be given a hostel room short term but they are usually not very pleasant.

I believe he has learning difficulties which make him vulnerable. His friend, the other lodger, has been effectively taking care of him for the last 20 years but has now got fed up... which is really a shame for me too because he was my real point of contact for them both.

This man does genuinely need support. I don't believe he's capable of organising himself and, now that he's lost his friend, is throwing himself totally at the mercy of the council.

Thanks for explaining. It certainly sounds like the council do have an obligation to support him, but only if he is in imminent danger of being homeless. Currently, he is not, and as they have so many other cases they will not do anything. 

He is, if we all decide he's a lodger and therefore an excluded occupier. He has 50 days left on his perfectly legitimate eviction notice in that case.

So I guess it's down to the Council now, whether they decide to make that call and just treat him as a lodger under notice who needs help NOW, or whether they decide to advise him to fight it until the house is repossessed and THEN help him find somewhere new.

GDB2222

Badger_Lady said:

GDB2222 said:

Badger_Lady said:

deannagone said:

The council will not give them any priority for housing unless they are deemed in 'housing need' (i.e. have a disability/vulnerability).  Some councils will offer a loan/grant for first months rent and deposit.  But that is the most help the tenant will get.., they will not get social housing.  There's a small posibility they might be given a hostel room short term but they are usually not very pleasant.

I believe he has learning difficulties which make him vulnerable. His friend, the other lodger, has been effectively taking care of him for the last 20 years but has now got fed up... which is really a shame for me too because he was my real point of contact for them both.

This man does genuinely need support. I don't believe he's capable of organising himself and, now that he's lost his friend, is throwing himself totally at the mercy of the council.

Thanks for explaining. It certainly sounds like the council do have an obligation to support him, but only if he is in imminent danger of being homeless. Currently, he is not, and as they have so many other cases they will not do anything. 

He is, if we all decide he's a lodger and therefore an excluded occupier. He has 50 days left on his perfectly legitimate eviction notice in that case.

So I guess it's down to the Council now, whether they decide to make that call and just treat him as a lodger under notice who needs help NOW, or whether they decide to advise him to fight it until the house is repossessed and THEN help him find somewhere new.

If he’s a lodger, 50 days is a long notice period. Let’s hope the council rehouse him. 

At the end of that time, if he’s still not rehoused, I guess the lenders will want to seek possession. I suggest that you don’t resist that, and actively assist them. By then, you’ll have done all you can to assist your lodger.

Badger_Lady

UPDATE:

The lodger just messaged me to say the council has offered him temporary accommodation to move into on his eviction date. He's fine with that (fingers crossed for his sake that he gets somewhere more permanent quickly), and it means I can continue with the sale.

deannagone

Glad to hear it, once you said he actually did have vulnerabilities, I hoped/suspected the council would actually help.   him.  Would you be able to let him take necessary bits and pieces with him - temporary accommodation can be very basic?  And cleaning products lol.  When I was in temporary accommodation yonks ago, a bottle of flash type cleaner was very necessary (didn't know about white vinegar and its uses then).  The council supposedly employed a cleaner but don't think a lot of cleaning was done. I was surviving on just child benefit (I had a five year old) due to a mess up with my local benefits office so money was extremely short at the time (due to address change).  That took weeks to sort out.  So I had no money at all for anything but very basic food for my son.  No idea what happens with UC.  I hope your tenant has some support.  Each time I've moved, something has gone wrong so support could be important if the tenant is vulnerable.

Obviously temporary accommodation is a roof over your head, but it can be a bit yukky at first.

Badger_Lady

Oh he can take anything he wants - aside from my jewellery and photos it's all up for grabs! He can take the sofa and fridge freezer if they're helpful 😁