Looking For Advice Please

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    Looking For Advice Please

    Hi Guys,
    I am new to this forum and new to this rental business so excuse the basic questions.

    Ok i am looking to rent a property as my daughter is going to high school next year and i want to be in the catchment area for the chosen school. We have identified a property, I know this property well as i used to go out with the girl next door in the 80's lol. We currently own our own house and will rent it out to family as that way we keep it off the books for tax purposes etc, but this is not important.

    Now this house was bought in 2007 at peak prices now i do not know how much mortgage is on it and frankly its none of my business. But what my concern is the rental £1500 p/m will not even cover interest only even if they took out a 85% mortgage and in the age of liar loans who know how leveraged they are!

    My concern is we want to move in and stay the duration of my daughters high school years. Now the house was advertised as long lease but they will not commit to more than 6 months. Now in my eyes thats not long term, especially now that SVR is detached from the base rate and we are seeing increases my worry is he will start losing money hand over fist every month compounded with house prices dropping he could pull the plug every 6 months.

    Now i could be completely wrong on amount of mortgage but why is the lease so short, is this normal i would like at least 3-4 year lease.

    Now onto the other issue the carpet, i mean shocking red i would not stamp it out if it was on fire lol. I would be perfectly happy to re carpet the whole house in high quality carpet with an agreed colour but not for a 6 month lease. Am i looking for something that does not exist ie a 3-4 year minimum lease.

    #2
    I am struggling to make much sense of your stream of conscioussness, but for what it's worth:

    First, renting your house to your family does not absolve you from paying tax on your rental income. To do otherwise is tax evasion - a criminal offence.

    Second, it is entirely up to the LL of the house you wish to rent, on what terms he lets it out. His mortgage arrangements are nothing to do with you. If he doesn't want to give you a long lease, then tough. You will have to find another property. It is quite common for LLs to offer a 6 month AST first, to check they have not ended up with the Tenant from Hell. Then if you prove yourselves model tenants, he may consider extending the tenancy.

    But it's up to him, not you.
    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

    Comment


      #3
      Sorry forgot to ask, what is the situation with repairs, the house is unfurnished the way we want it. In the contract is there a clause with to regards timescale for repairs. For example if a shower breaks i would expect that to be fixed within the week like i would do in my own home. Obviously if something is disputed it could take longer but for clear cut simple failure i will not tolerate any more than a week.

      So is it written into the contract maximum timescales for essential repairs?

      Comment


        #4
        Then why advertise it as long lease?

        Comment


          #5
          Originally posted by overlander View Post
          Sorry forgot to ask, what is the situation with repairs, the house is unfurnished the way we want it. In the contract is there a clause with to regards timescale for repairs. For example if a shower breaks i would expect that to be fixed within the week like i would do in my own home. Obviously if something is disputed it could take longer but for clear cut simple failure i will not tolerate any more than a week.

          So is it written into the contract maximum timescales for essential repairs?
          Not usually, no, but if the LL takes an unreasonable length of time to organise repairs then there is a protocol you can follow whereby you instruct the repairs yourself and deduct from the rent.

          But you need to read the contract carefully to see what you are liable for and what the Ll is liable for.
          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

          Comment


            #6
            Originally posted by overlander View Post
            Then why advertise it as long lease?
            It depends what he means by 'long'. Most assured shorthold tenancies (which is what yours would be) are just that - shorthold - i.e., up to three years, usually. They can be longer but as a LL I would not grant a tenancy of more than 12 months in the first instance.
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

            Comment


              #7
              Originally posted by mind the gap View Post
              I am struggling to make much sense of your stream of conscioussness, but for what it's worth:
              Simple i want a lease for about 5-6 years ideally until daughter is at university and not willing to buy during a period of houses falling in value. The way i see it is i find a house to rent which was bought a long time ago then we will more than likely get a 6 year lease. What i do not want is a house someone can't sell so they rent until they can and the easiest way to check that is finances.

              Comment


                #8
                Originally posted by overlander View Post
                Hi Guys,
                I am new to this forum and new to this rental business so excuse the basic questions.

                Ok i am looking to rent a property as my daughter is going to high school next year and i want to be in the catchment area for the chosen school. We have identified a property, I know this property well as i used to go out with the girl next door in the 80's lol. We currently own our own house and will rent it out to family as that way we keep it off the books for tax purposes etc, but this is not important.

                Now this house was bought in 2007 at peak prices now i do not know how much mortgage is on it and frankly its none of my business. But what my concern is the rental £1500 p/m will not even cover interest only even if they took out a 85% mortgage and in the age of liar loans who know how leveraged they are!

                My concern is we want to move in and stay the duration of my daughters high school years. Now the house was advertised as long lease but they will not commit to more than 6 months. Now in my eyes thats not long term, especially now that SVR is detached from the base rate and we are seeing increases my worry is he will start losing money hand over fist every month compounded with house prices dropping he could pull the plug every 6 months.

                Now i could be completely wrong on amount of mortgage but why is the lease so short, is this normal i would like at least 3-4 year lease.

                Now onto the other issue the carpet, i mean shocking red i would not stamp it out if it was on fire lol. I would be perfectly happy to re carpet the whole house in high quality carpet with an agreed colour but not for a 6 month lease. Am i looking for something that does not exist ie a 3-4 year minimum lease.
                Wow! Having read that I would not consider you as a tenant ever, partly because you seem to have a very cavalier attitude to the law.
                I offer no guarantee that anything I say is correct. wysiwyg

                Comment


                  #9
                  Originally posted by mind the gap View Post
                  It depends what he means by 'long'. Most assured shorthold tenancies (which is what yours would be) are just that - shorthold - i.e., up to three years, usually. They can be longer but as a LL I would not grant a tenancy of more than 12 months in the first instance.
                  I can see your point, its a hard one, i must be the tenant from hell. But we just could not live with red carpets, even for a 12 month lease something would have to be done, what would you suggest?

                  Comment


                    #10
                    Originally posted by overlander View Post
                    Simple i want a lease for about 5-6 years ideally until daughter is at university and not willing to buy during a period of houses falling in value. The way i see it is i find a house to rent which was bought a long time ago then we will more than likely get a 6 year lease. What i do not want is a house someone can't sell so they rent until they can and the easiest way to check that is finances.
                    You cannot make any assumptions about why or for how long people are renting out their homes, nor force them to give you a contract for longer than they want to.

                    Suggest you stay put and send your kid to the local school. Just a suggestion.
                    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                    Comment


                      #11
                      Originally posted by jta View Post
                      Wow! Having read that I would not consider you as a tenant ever.
                      Why, just covering all bases please see other post for more info.

                      Comment


                        #12
                        Originally posted by mind the gap View Post
                        You cannot make any assumptions about why or for how long people are renting out their homes, nor force them to give you a contract for longer than they want to.

                        Suggest you stay put and send your kid to the local school. Just a suggestion.
                        LOL i can be direct, so you think a 6 year term lease is too optimistic?

                        Comment


                          #13
                          Originally posted by overlander View Post
                          I can see your point, its a hard one, i must be the tenant from hell. But we just could not live with red carpets, even for a 12 month lease something would have to be done, what would you suggest?
                          I would suggest that you roll them up and store them at your own expense and provide your own flooring for the duration of the tenancy.
                          'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                          Comment


                            #14
                            Originally posted by overlander View Post
                            LOL i can be direct, so you think a 6 year term lease is too optimistic?
                            Yes, in a word.
                            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                            Comment


                              #15
                              Whilst what you want is important, you also have to consider hat is available. I would be extremely suprised if you could find a landlord willing to grant a 6/7 year tenancy.

                              Most 'real' landlords relish the thought of 'long term' tenants as that makes a lot of financial sense - maybe one way of re-assuring yourslf over the landlords future 'aims' would be to check he does actually have permission to let the property from his lender. This fact would affect your rights as a tenant, so it is a perfectly valid question to ask (and request proof of). A high percentage of 'rent until we can sell' landlords will not have had the forethought to obtain permission (which usually costs!).

                              Please remember, a 6 year lease binds you for that period of time too - even if you are offered a fantastic job at the other end of the country in 3 years time.

                              Comment

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