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A quick question regarding an apartment I am considering renting.

Landlord is inisisting on a whole year's rent upfront. Now while that seems harmless enough I am a little concerned given the current climate. Seems an unreasonable demand but then I want the appartment.

Are there any risks to me doing this? What if the appartment is repossessed during the period?

Thx in advance.

Edited by spoon

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A quick question regarding an apartment I am considering renting.

Landlord is inisisting on a whole year's rent upfront. Now while that seems harmless enough I am a little concerned given the current climate. Seems an unreasonable demand but then I want the appartment.

Are there any risks to me doing this? What if the appartment is repossessed during the period?

Thx in advance.

I would ask for a 10% discount for paying a year in advance.

Yes you could lose it if he goes belly up.

Are you paying a deposit as well? I think nowdays the depo has to go into some protected scheme.

I think I would find another apartment were you didn't have to do this. Sounds like he needs the cash!

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I would ask for a 10% discount for paying a year in advance.

Yes you could lose it if he goes belly up.

Are you paying a deposit as well? I think nowdays the depo has to go into some protected scheme.

I think I would find another apartment were you didn't have to do this. Sounds like he needs the cash!

In this market, the tenant is calling the shots. I´d tell him where to go, and find a more reasonable landlord.

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A quick question regarding an apartment I am considering renting.

Landlord is inisisting on a whole year's rent upfront. Now while that seems harmless enough I am a little concerned given the current climate. Seems an unreasonable demand but then I want the appartment.

Are there any risks to me doing this? What if the appartment is repossessed during the period?

Thx in advance.

Off the top of my head, and in addition to the repo possibility

WHY does he want a whole year up-front?

What if you want/need to move (changed personal or professional circumstances, a neighbour from hell)?

What if the place burns down, floods, or otherwise becomes uninhabitable?

What if he turns out to be a terrible landlord who never fixes anything?

What if rents go through the floor?

Will the rent be in his account or held in escrow?

As you might be able to tell, I would be extremely suspicious of this!

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Guest grumpy-old-man
A quick question regarding an apartment I am considering renting.

Landlord is inisisting on a whole year's rent upfront. Now while that seems harmless enough I am a little concerned given the current climate. Seems an unreasonable demand but then I want the appartment.

Are there any risks to me doing this? What if the appartment is repossessed during the period?

Thx in advance.

that is highly unusual & would normally only be requested if you didn't have a job.

I had to pay 6 months in advance when we returned from France as I wasn't working, but this was my suggestion, not the landlords or even the agents request.

be careful spoon imo.

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I'm paying 6 months' up front as I am "not working".

I know the risks. But I wanted a place.

I've no idea of the stock available round this area (that might potentially become available in the next month), but in my price range I'd seen 3 rubbish ones and had two withdrawn from viewing (1 being refurbished, would be going on at a higher rent; 1 landlord is selling). Nothing new had come onto the market in the previous 2 weeks.

So I took the place due to a shortage of property in the budget that I am prepared to afford. Rent is 35% of any salary I would expect to earn when I work (doing some temping in September, started today). Next level up quickly becomes 50-55% of take-home. Plus bills, putting it at 75% of takehome ... so hobson's choice.

Didn't have opportunity to negotiate as it was on with >1 agent and I have to have my phone turned off while at work so couldn't be doing the to/fro calls from agent etc.

It takes a week to get a viewing, negotiation would no doubt take longer and might lose me it.

Negotiation is for those in a strong position. And if you can't see the other person's hand, but NEED to win this game, you sometimes just have to chuck money at it to resolve an issue.

Edited by ScaredEitherWay

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I have done that before because I wanted a particular apartment, but I was comfortable with the landlord's circumstances, and it was my suggestion to secure that particular apartment. I offered a reduced monthly rental paybe in 2 x 6 monthly instalments. Worked fine for me.

In your case you are saying the LL is demanding 12 months up front which suggests either he doesn't have confidence in your ability to keep paying the rent, or else he is in financial difficulties and needs the cash flow. Possibly he is asking you to subsidise his mortgage shortfall.

Maybe check when he bought the property via the Land registry or one of the internet sites that reports registry prices, find out what he paid for it, work out what his mortgage payments might be versus his yield and the rent. Do you know what his job is? Basically I would want to be very certain I would be getting the whole 12 months before I gave him anything, else move on. There's always another flat.

Edited by Red Kharma

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Avoid at all costs!

.

If you have that money to give up front then you should be earning interest off it

not some bloody landlord.

.

His motives are highly dubious, I would suspect that the rent dosnt cover the mortgage and

he is looking to front load the tenancy in the expectation that he will have another source of

money later.

.

If you do really have to go for it I would be looking for closer to a 20-25% reduction against

similar properties rent in the area since you are carrying all the risk and loss of interest.

.

Bloody landlords make me sick.

.

ST

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Maybe check when he bought the property via the Land registry or one of the internet sites that reports registry prices, find out what he paid for it, work out what his mortgage payments might be versus his yield and the rent. Do you know what his job is? Basically I would want to be very certain I would be getting the whole 12 months before I gave him anything, else move on. There's always another flat.

I checked LR for the flat I just rented... tried asking the agent about the LL's work/business and (agent is are a large/reputable firm) agent really couldn't see why I was asking. Dim as fook. I was making myself perfectly clear, but needed that place, so thought it was worth a punt.

I can always do the loud tears in the agent's office when they're most busy if it goes tits up. Put the fear of god into their other tenants until they find me somewhere else, although financially I expect my payment of this amount is fully my responsibility, not theirs. But it would be nice to cause a bit of a sorry scene :)

Nothing like a spot of neediness to make you feel better.

Edited by ScaredEitherWay

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A quick question regarding an apartment I am considering renting.

Landlord is inisisting on a whole year's rent upfront. Now while that seems harmless enough I am a little concerned given the current climate. Seems an unreasonable demand but then I want the appartment.

Are there any risks to me doing this? What if the appartment is repossessed during the period?

Thx in advance.

Go for it, give him the years rent, while you're at it give him your next years salary, why not throw in a car and a holiday to Barbados too, one question, you don't happen to wear floppy shoes and have a nose.

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Absolutely no way would I go for that - I'd consider 6 months but only for a good discount, and then after checking into the landlord / land registry data.

There are plenty of LL's out there who bought > 5 years ago - they're the ones I'd be looking at now.

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[EXPERT OPINION HAT ON]

WALK!!

This landlord sounds like he's trying to pull a 'premium lease' stunt. That for those who dont know means that if certain conditions are met you wont be protected by the Housing Act.

[/EXPERT HAT OFF AND BACK TO KITCHEN TO PEEL SPUDS]

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Run a frickin' mile!! - do not pass go, do not collect £200, do not do anything else!!!

he obviously has cash flow problems - or has had seriously troubled previous tenants - in which case he'll be a pain in the ****.

give him the void he deserves.

Can you tell us the first bit of the postcode and I'm sure some of us no here will help you try to find somewhere...

bloody landlords.. sod the lot of them.

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A quick question regarding an apartment I am considering renting.

Landlord is inisisting on a whole year's rent upfront. Now while that seems harmless enough I am a little concerned given the current climate. Seems an unreasonable demand but then I want the appartment.

Are there any risks to me doing this? What if the appartment is repossessed during the period?

Thx in advance.

Spoon,

Run a f*cking mile mate, absolute chancer

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Guest grumpy-old-man
[EXPERT OPINION HAT ON]

WALK!!

This landlord sounds like he's trying to pull a 'premium lease' stunt. That for those who dont know means that if certain conditions are met you wont be protected by the Housing Act.

[/EXPERT HAT OFF AND BACK TO KITCHEN TO PEEL SPUDS]

I haven't heard of this before, can you explain further please. (edited: when you have finished the spuds....obviously)

or is it just the fact that if you pay a certain period or amount up front, normal legislation doesn't apply ?

Edited by grumpy-old-man

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I haven't heard of this before, can you explain further please. (edited: when you have finished the spuds....obviously)

or is it just the fact that if you pay a certain period or amount up front, normal legislation doesn't apply ?

Its a scam basically-nothing to do with real premium leases as such but it's the nearest thing I can relate it to since this is how 'company lets' are often done ie a lump sum up front. Can be a rip off in a number of ways and one which springs to mind is where someone who doesnt even have the legal right to rent out a prop tries to grab as much in a lump sum from someone as possible only for the 'tenant' to find they have no agreement with the rightful owner when it comes to light. I must admit it doesnt seem to happen so often in domestic dwellings as these days (especially if thru an agent) credit checks and references SHOULD have been taken out. I have seen examples of this in commercial property in particular-one client had no idea he WASNT paying rent to the owner until the bailiffs turned up to change the locks and the perpitrator had scarpered with a years worth of lease monies. For my money I would be WAY too suspicious of this kind of deal that Id feel compelled to do a LOT of checking up on the LL as has been previously recommended and in the current rental market not worth the energy when there are so many more straightforward deals out there with honest landlords. This is worst case scenario obvs and the LL might just be strapped for cash and trying to get a lump sum but that's still not a good sign in itself.

Edited by stonethecrows

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Not in every price bracket.

And not for everybody.

Paying the full amount up front is quite common if people don't work or the credit check is a bit iffy.

So if you say "no", somebody else will say "yes"

Edited by ScaredEitherWay

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sounds dodgy to me.

Possible that he may have cash flow problems meaning that things may get sticky later on - if he has to sell for example, and you will have to try and get your money back, somehow.

Or, he'll take your money and run.

Or he needs that cash to pay for a holiday/conservatory/new car/plasma TV because he can't MEW anymore or get a loan for it.

Go elsewhere - you know it makes sense

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Nay, nay & thrice nay.

Why does he need it all up front?

What about the lost interest on your part?

What recourse do you have if it goes pear shaped during the period?

Have you got a Short Assured Tenancy?

Who holds the deposit.

I've rented for 16 years in at least a dozen different places, and have never heard of this.

Walk on by my friend..

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Stamp duty of 1%.

Also be aware that if the rent is over £5,000 and the agreement is for more than 364 days then the stamp duty -- payable by the tenant -- will be 1% of the rent.

'Stamp Duty Information':

http://www.legalhelpers.co.uk/landlord/stampduty.asp

Annual Rents - Stamp duty is calculated on the amount of rent paid, at a calculation of 1%, per annum, and is rounded up in units of £5, with the minimum payment of £5.

[...snip...]

- Less than a year - If a property is let for less than a year, even if the amount charged is in excess of £5,000, the stamp duty will only ever be £5. Therefore, the astute landlord will make a 364 day tenancy agreements rather than an annual one, for high rents, as the stamp duty will only ever be £5.

Stamp duty must be paid within 30 days of the date the agreement becomes effective. This is normally the date on the document. If you don't have the document stamped within this period, you will be liable to pay a penalty as well as the stamp duty. Interest charges will also arise if the correct amount of duty has not been paid on time.

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Premium Lease not applicable.

This landlord sounds like he's trying to pull a 'premium lease' stunt. [stonethecrows]

Premium Leases are for a minimum of two years with no break clause in favour of either party (lessor and lessee rather than landlord and tenant).

Edit: faour -> favour.

Edited by Jeff Ross

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Letting agents best avoided.

Didn't have opportunity to negotiate as it was on with >1 agent and I have to have my phone turned off while at work so couldn't be doing the to/fro calls from agent etc.

It takes a week to get a viewing, negotiation would no doubt take longer and might lose me it. [scaredEitherWay]

It's surprising to see an HPCer using an agent. They ask high rents, introduce vast amounts of bureaucracy, scam you for a load of fees, and then add a 10% 'tax' to the rent. They offer no value at all to the tenant (and little for the landlord).

Much the best way to find accommodation is to get your feet on the street and look at the adverts in local shops. Always deal directly with the landlord and negotiate the rent (take off another £25 a month if paying six months in advance).

I found my current flat advertised in the local PO, went to view and negotiated a rent of £350 pcm (for a luxury one-bed flat with garage), gave landlord a cheque for £700 -- all done in less than 10 minutes with no credit checks or any other nonsense. Returned four days later to sign agreement and receive keys. Job done.

Edited by Jeff Ross

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Jeff, please re-read what I have actually said. Its NOT a premium lease I pointed that out and also the fact that it could potentially be a scam-copy and paste ability does not equate with professional experience in this area my old mucker!! Stamp duty is neither here nor there amounting to probably no more than a couple of hundred a year and LOTS of tenancies are granted for a period of 12 months DE FACTO so the point you were making regarding that is a little unclear. A tenant stands to lose a lot more than this if they get ripped off and find themselves oiked out on the street minus deposit and any tenant rights!

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