Prospective tenant with IVA. Issue with BTL lender?

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    Prospective tenant with IVA. Issue with BTL lender?

    A man who wishes to rent out our former home has an IVA and a high risk credit rating. He has fully explained the reason for the IVA which involves a divorce. He has a job paying decent money on a permanent contract and excellent refs from employer and former landlord. He has no CCJs. He has lined up a guarantor. If we went ahead our concerns are 1. Whether we would need to inform our lender as we have heard some BTL lenders do not permit IVA or BR tenants. 2. Are there any implications of connecting our address to someone with a high risk credit history even if he pays without a problem. We are nervous. Any thoughts on this? Thanks.

    #2
    1. What are the conditions vof. YOUR mortgage regarding tenants with IVA.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      If you are nervous, wait for the next Tenant to come along. This should not be too much trouble unless your property is undesirable. I cannot answer the technical queries about Lenders, as I only have experience of one or two... sorry... I have had to inform my Lender of some details of the Tenants, never had this particular type of situation. But do remember that your gut-feeling is just as important as a computer says "no" / organisational policy... your gut-feel may lead you away from this prospective Tenant, or towards him. I would say, at least you know (assuming that is 'cos he's been open about it, not 'cos you found out during the checks?).

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        #4
        The 1 guy who admitted he had an IVA at the outset stayed in one of my properties for 8 years, never had a problem with him and he became a good friend, sadly after 8 years he was taken out in a coffin. Otherwise I have no doubt he would still be there now.
        If he is honest with you I can't see a problem but gut feeling goes a long way!
        As for mortgage lenders, what do they care providing the mortgage is paid.
        Your call.
        Another long suffering LandLord

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          #5
          If the person has an IVA, he will have very little spare cash as IVA's repayments are based on your disposable income. Personally, I would wait till the next person comes along. One thing to remember, if a landlord wants rid of a tenant, perhaps he/she is regularly late paying rent, maybe the rent is a little short etc, the landlord won't give a bad reference - he wants them gone and has every reason to give a good reference!!

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            #6
            What is it about this tenant/deal that makes you want to take on any additional admin and risk?

            Higher rent, lovely looking chap, no one else interested?
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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              #7
              I let to someone with an IVA after divorce and they were a very good tenant staying for 2 years.

              He presented with new lady who had no credit probs and I felt confident in and he explained to me fully how things had got out of control which had led to his credit woes. Her mother was guarantor - suggest you get one if you take him on.

              I knew the company he worked for and was able to verify everything. House was unencumbered so no BTL worries and it was in an area hard to let (at that time).



              Freedom at the point of zero............

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                #8
                "has an IVA and a high risk credit rating"

                Any agent would tell you to steer clear.

                Yes, credit problems will be registered to your address and may prevent the next tenant ( or you if you move back in ), from obtaining credit.

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                  #9
                  Credit "problems" are NOT registered to the address, they are registered to the person and will have absolutely NO effect on future residents.

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                    #10
                    Originally posted by emwithme View Post
                    Credit "problems" are NOT registered to the address, they are registered to the person and will have absolutely NO effect on future residents.
                    You beat me to it.
                    Another long suffering LandLord

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                      #11
                      Perhaps you could get a guarantor .

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                        #12
                        A person with bad credit has to have his current address linked to his / her name

                        Do you think the address will NOT show up, and it's just a persons name of no fixed abode ?

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                          #13
                          Yes, but once it's not a current address (ie there is a new person there) then it won't show up on THEIR record (it will show as a previous address on the non-paying person's).

                          Example:

                          Joe Bloggs lives at 123 Any Street and doesn't pay his council tax and credit card bills. They get sent to collections/liability orders are made. Joe Bloggs doesn't pay them.

                          Joe Bloggs moves out.

                          Sally Jones moves in to 123 Any Street. Sally pays all her bills on time.

                          Sally has no problems getting credit because her record is good (although she still has to deal with Dodgy Debt Collectors Ltd who don't take any notice of the "return to sender: no longer at this address" that she's been diligently writing on all of the post received for Joe Bloggs)

                          Joe Bloggs now lives at 12a New Road. Joe Bloggs can't get credit because of his previous non-payment.

                          http://www.experian.co.uk/consumer/c...dit-myths.html

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                            #14
                            But CR mistakes happen, especially if Sally Jones was previously named Bloggs (unrelated to Joe). Surnames are linked to address. Bad news for Sally unless she attaches a correction to her CR file.

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