Parent or relative acting as joint tenant to meet criteria

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Parent or relative acting as joint tenant to meet criteria

    Interesting situation. Been referencing a couple over a few days, he is ok and would pass referencing. She has an iva so would fail. Hence I wouldn't get offered rent guarantee insurance which I want.

    Rent is 695, he earns 21840 not really sure if that salary would suffice, I thought it was salary 40 which would be 27800.

    They have suggested adding a family member who works to the joint tenancy (one of his parents) so that it meets the salary criteria and referencing passes.

    In reality though it will be the couple living there and not one I the names on the tenancy agreement. Should I even consider this? Would it invalidate the buildings insurance? Do the names on the tenancy agreement have to be living at the address?

    #2
    They wouldn't be tenants, so the tenancy would be a fiction.
    It wouldn't be the end of the world (don't show this bit to any lawyers!) because quite often one joint tenant moves out of a joint tenancy and the agreement isn't terminated.
    So it happens.

    The problem is that it's useless just when you need it to be helpful.
    If everything goes pear shaped and you need to pursue the non-resident tenant, they'll (possibly) decline to pay and, if you want to sue them, you're hardly starting from a firm position legally.

    Either use the family member as a guarantor, ask for some month's rent in advance, a larger deposit or say no.

    If the combined salary is enough (after debt repayment obligations) I might chance it with a guarantor for a six month fixed term - but it depends on how the IVA arose and whether it was volunteered when viewing etc.
    After 6 momths you'd have a feel for how the rent is coming in.
    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).

    Comment


      #3
      The tenancy would be valid. There are though three possible snags:

      The first is that should the tenants in occupation ever need to claim benefit there may be a problem if the non-occupying tenant can pay the rent.

      The second is that the non-occupying tenant, if ever asked to pay, argues that they did not realise the full import of what they were doing.

      The third is that when the fixed term ends the non-occupying tenant can end any periodic tenancy by notice to quit leaving just the two occupying tenants in occupation without the quasi-guarantee of the non-occupying tenant.

      Comment


        #4
        Thankyou, very detailed and useful replies.

        I'm not sure if this is a good idea overall then as it seems the non resident tenant would probably not provide the security I am seeking to achieve.

        I am thinking if the figures stack up to put him alone on the tenancy. His income is 21480, and rent 695, I think to some ratios that's just about acceptable.

        However he does pay child maintenance of around 230 monthly.

        To this I am not factoring in the half rent payment that that his partner who has the iva will contribute to him ,but as she wouldn't be a legal tenant I guess she could not be relied upon to pay him.

        He does have savings, I could possibly ask him for 6 months upfront...

        Comment


          #5
          Also, in regards to the iva. I wasn't volunteered, when they phoned I asked them if they had any issues with a credit check or CCJ, didn't specifically mention iva, they said no. They gave me bank statements and I picked up on a payment to a debt agency to which they then explained it. I guess technically they I didn't ask them if they had a iva, but in reality they it's obvious what I'm getting at when I ask if they have ok credit and any ccjs

          Comment


            #6
            I'd be suspicious of someone with an IVA that didn't flag it up when it was obvious I was about to do a credit check.

            I'd try and find some other tenants.
            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).

            Comment


              #7
              Two other issues I could foresee would be that 1) you could effectively be defrauding an insurance company, who would be issuing rent guarantee insurance based on a false premise and 2) The three of them would turn the property into an HMO so if your Council has a selective licensing policy and asked to see the tenancy agreement, they could force you to get a licence.

              However, as others have said, if the tenants have lied (by omission) its a non starter.

              Comment

              Latest Activity

              Collapse

              • Advice for tenant asked for big rent rise
                by Renterthedragon
                I’m a tenant facing a sharp rent increase and in need of advice.

                I have a good landlord who agreed to a rent reduction last year because of ongoing maintenance issues and lower market values. However, I can only communicate with them through an agency.

                Approaching the end...
                18-05-2022, 22:10 PM
              • Reply to notifying utility companies of tenant change
                by ash72
                I've not found any short-cuts, as each company has their own quirks on dealing with this. It usually takes a couple of calls to a customer services person to provide the information, due to GDPR they wont say anything about the exiting T.

                Some Councils, seem to have an online form you can...
                18-05-2022, 21:21 PM
              • notifying utility companies of tenant change
                by flyingfreehold
                Does anyone have a shortcut? Right now we seem to have to hang on interminably long on the phone to provide details of leaver readings, put the account back in landlords name and then to provide new tenants' details when the place is re-let. Anyone know of a shortcut? We used to send out letters but...
                18-05-2022, 21:10 PM
              • Reply to Single parent renting
                by Hooper
                I am not sure that it will make her feel any better but I suspect that the children are more of an issue than being a single mum. Friends of mine have been rejected from every family size house they have applied to. They are high earning professionals with decent references and ... two young kids 2...
                18-05-2022, 20:28 PM
              • Single parent renting
                by Dct
                A friend of mine who is a single parent with three children is trying to find a house to rent. She has three children and recieves UC mainly to help with childcare costs, but despite viewing several houses and showing interest and showing she is more than able to pay rent, she has been turned down and...
                18-05-2022, 16:32 PM
              • Reply to Single parent renting
                by Hudson01
                This may just be one part of it, as ' ash72' states there are a lot less rental properties now (and it will get worse in the future), rents have sky rocketed and a LL can simply pick and choose the very very best tenant. It has become even more important than ever to get the right tenant, this is due...
                18-05-2022, 19:40 PM
              • Reply to Advice for tenant and section 8 counter claim
                by Hudson01
                As 'ash72' states you may be angry at the perceived way in which the landlord has treated you but do not mix the two up, If you wish to take on more stress after you have been evicted and may still be looking for a place to live...... which with a CCJ will be all but impossible, go ahead, but i would...
                18-05-2022, 19:14 PM
              • Advice for tenant and section 8 counter claim
                by Forgetmeknot
                I wondered if anyone can tell me if it is possible to counter claim for damage, harassment, poss landlord breach in contract and emotional distress in a section 8 eviction.
                so basically I’ve read online that i can claim for compensation which will go towards reducing my rent arrears but my solicitor...
                18-05-2022, 16:30 PM
              • Reply to Let a house to local council
                by ram
                If you are in flats, with service charges, the buildings insurance for residential Landlords insurance ( the Landlord of the freehold, that insures the building ) The insurance company may well cease immediately the insurance coverage.

                It happend to our block of flats ( I was the Co. Sec,
                ...
                18-05-2022, 18:54 PM
              • Let a house to local council
                by r3drum
                Guys

                Have a property which is currently marketed for rent ( 2 bedroom - fully renovated ). Been about 3 weeks and not had much interest shown.

                Anyone got information or first hand knowledge around renting the property to the local councils or any other authorities which guarantee...
                20-11-2019, 11:58 AM
              Working...
              X