Rent Repayment holiday

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    Rent Repayment holiday

    I was hoping for some advice.

    My landlord has kindly offered us a rent payment break as he can potentially get a 3 month mortgage repayment holiday on the buy to let flat that we rent through him.

    I am self employed and not in financial difficulty yet as I have enough savings to see me through three months which includes paying rent. Also, the chancellor has announced that I will be getting 3 months 80% of my self employed/ tax return average divided by 3 months in June which as far as i know I am eligible for.

    Please advise best route here.

    #2
    Well there is a difference between living at zero rent and having rent deferred.

    Your rent will simply be deferred -- if offered. So you will have to pay double rent later. I cannot see the point, unless you plan on doing a runner (with all that this entails).

    The landlord's mortgage will still be payable -- only a little later. And the mortgage might only constitute a small part of her costs.

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      #3
      I would suggest all the time you can pay your rent in full do it - there may be a time later on when you cannot and you will appreciate the holiday more then. What you don't want to do is build up a debt that will put you in financial difficulty later.

      Good luck

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        #4
        Thanks Andrew,

        I`m not sure I understand, I want to do the right thing of course. I certainly don`t want to do a runner and would never consider this option.

        I don`t think the landlord has considered everything here. Could you please elaborate in layman`s terms so that I can explain it to him?

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          #5
          Just tell him you can afford to pay so will carry on as usual.

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            #6
            Thank you jpucng72 and DPT57. This is my gut feeling as well and I will continue to pay rent. After all, I should be getting 80% of my self employed tax return back/ divided my months so should not be out of pocket.

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              #7
              Flo1985,

              In your case, any rent that you are 'let off' will need to be repaid asap and most landlords would expect (for their security) for it to be repaid within 6 months. So, if your rent is £1k, for up to 6 months you could be paying £1500 per month rent. You gain nothing.

              The amount your landlord owes to his lender does not change, a 'holiday' for her is dealt in the same way but - although the repayment is likely over a much longer time (maybe not until the end of the mortgage), he will still have to pay it, plus whatever interest he accrues because his outstanding balance will be higher than it would have been without the Coronavirus. (if it's £3k total over say 10 years left on the mortgage, thats about £1k interest.)

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                #8
                Thank you Snorkerz. That does indeed make sense and thank you for replying.

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