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A Year In Advance

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I've seen a nice house for rent available in my area, we've got to move out of current place as current landlord wants to take back posession (and move back in).

The place we'd like to move into is a classic case of accidental landlord (have bought another place, but can't sell this one for the price they want), they've lived in it a long time (20 years), I believe they are equity rich but cash poor. The price is quite high, but I believe I could negotiate a healthy discount by offering rent in advance, say 1 year.

I'm interested on how this impacts me legally, i.e. if I pay the full years rent (12 month fixed term AST rental agreement) what happens if

a) they get some mug to pay the crazy price they want for sale during my tenancy and they want to evict me to proceed with sale?

B) they become bankrupt and there home (and 'rental property') are reposessed?

c) house burns down and we need to move elsewhere?

All advice greatly appreciated.

oz

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I'm interested on how this impacts me legally, i.e. if I pay the full years rent (12 month fixed term AST rental agreement) what happens if

a) they get some mug to pay the crazy price they want for sale during my tenancy and they want to evict me to proceed with sale?

B) they become bankrupt and there home (and 'rental property') are reposessed?

c) house burns down and we need to move elsewhere?

IANAL, but I'd expect:

a) Your rights take precedence for the duration of the agreement (and notice period thereafter).

:P That's the risk you take if there's a mortgage and they let it without the bank's permission.

c) That's what insurance is for (you'd have a claim against your landlord).

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I've seen a nice house for rent available in my area, we've got to move out of current place as current landlord wants to take back posession (and move back in).

The place we'd like to move into is a classic case of accidental landlord (have bought another place, but can't sell this one for the price they want), they've lived in it a long time (20 years), I believe they are equity rich but cash poor. The price is quite high, but I believe I could negotiate a healthy discount by offering rent in advance, say 1 year.

I'm interested on how this impacts me legally, i.e. if I pay the full years rent (12 month fixed term AST rental agreement) what happens if

a) they get some mug to pay the crazy price they want for sale during my tenancy and they want to evict me to proceed with sale?

B) they become bankrupt and there home (and 'rental property') are reposessed?

c) house burns down and we need to move elsewhere?

All advice greatly appreciated.

oz

I know someone (single girl) who's paid a year upfront more than once and got a discount.

Had no problems like repos or LL wanting to sell, but in the last place she had several weeks without a washing machine. Letting agent wouldn't or couldn't get it fixed and because she'd paid upfront she had no leverage. So that's something to think about. Her L/lady was living in France and not contactable though.

If you were in direct contact with the owners it might be easier, esp. if they seem reasonable types.

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IANAL, but I'd expect:

a) Your rights take precedence for the duration of the agreement (and notice period thereafter).

:P That's the risk you take if there's a mortgage and they let it without the bank's permission.

c) That's what insurance is for (you'd have a claim against your landlord).

I would double check they have a BTL mortgage, (they have said they will have one in place), does this change things?

I know someone (single girl) who's paid a year upfront more than once and got a discount.

Had no problems like repos or LL wanting to sell, but in the last place she had several weeks without a washing machine. Letting agent wouldn't or couldn't get it fixed and because she'd paid upfront she had no leverage. So that's something to think about. Her L/lady was living in France and not contactable though.

If you were in direct contact with the owners it might be easier, esp. if they seem reasonable types.

The seem reasonable and their 'new' home is just a couple of streets away. This is there first time letting and they are a bit nervous.

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I would double check they have a BTL mortgage, (they have said they will have one in place), does this change things?

If they don't have permission to operate the letting from the mortgage provider then they could find themselves getting possessed (certainly on a higher rate which they may be unable to pay and get possessed and you have little rights) and you out because there isn't a valid contract in place. We paid for our renewal 3 months in advance to get a lower rent on a 12 month contract with a 6 month break on our side. I'd do some amount of the rent upfront, maybe 6 months and get them to agree to the reduced rent. Tell them that it's to cover yourself, they are nervous accidental landlords and want covering with the year, you don't know them from Adam and want to be sure that once the money is handed over they won't just ignore you until next year-meet in the middle.

Edited by zebbedee

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If they don't have permission to operate the letting from the mortgage provider then they could find themselves getting possessed (certainly on a higher rate which they may be unable to pay and get possessed and you have little rights) and you out because there isn't a valid contract in place. We paid for our renewal 3 months in advance to get a lower rent on a 12 month contract with a 6 month break on our side. I'd do some amount of the rent upfront, maybe 6 months and get them to agree to the reduced rent. Tell them that it's to cover yourself, they are nervous accidental landlords and want covering with the year, you don't know them from Adam and want to be sure that once the money is handed over they won't just ignore you until next year-meet in the middle.

The landlord has indicated they will definitely be on a BTL mortgage (I would confirm this). So I guess my bigesst concern is paying up front and them being repossessed, would the mortgage company recognise the rent paid and allow us to continue our occupancy?

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The landlord has indicated they will definitely be on a BTL mortgage (I would confirm this). So I guess my bigesst concern is paying up front and them being repossessed, would the mortgage company recognise the rent paid and allow us to continue our occupancy?

If they have the permission of the mortgagee then the mortgagee must honour the rental contract and chase the LL for any rent paid to them which would be owed to the mortgagee.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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