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Guest X-QUORK

Landlord In A Slight Pickle...

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Guest X-QUORK

Here's a tale of woe...

A friend of mine pays his landlord £n per month rent, but his landlord is having to remortgage and needs to tell the lender that he's getting £n+75 rent a month in order to get the finance. The landlord is a reasonable sort of fellow and values having good tenants, so he isn't going to ask his tenants to cover the shortfall with increased rent.

Instead, he's asked them to pay the £n+75 rent into his account every month and he'll refund the £75. I think it's called "cooking the books". Well, my friend thinks this seems reasonable and has agreed to go along with the plan. If the landlord renages on the deal he can just give notice and move on.

I think this is a pretty good example of the pressure many BTL landlords are facing in the credit squeeze.

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Fantastic!

Of course, your friend is an accessory to mortgage fraud, but hey, what's wrong with a bit of lawbreaking eh?

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Guest X-QUORK
Fantastic!

Of course, your friend is an accessory to mortgage fraud, but hey, what's wrong with a bit of lawbreaking eh?

You're right of course. I think he's faced with going along with it or facing a rent increase to cover the extra £75. In which case he'd have to move and face all the hasssle that involves.

A case of personal priciples and how far one is willing to go to avoid extra cost and hassle. Most of us break the law daily on our drive into work.

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Guest An Bearin Bui
Here's a tale of woe...

A friend of mine pays his landlord £n per month rent, but his landlord is having to remortgage and needs to tell the lender that he's getting £n+75 rent a month in order to get the finance. The landlord is a reasonable sort of fellow and values having good tenants, so he isn't going to ask his tenants to cover the shortfall with increased rent.

Instead, he's asked them to pay the £n+75 rent into his account every month and he'll refund the £75. I think it's called "cooking the books". Well, my friend thinks this seems reasonable and has agreed to go along with the plan. If the landlord renages on the deal he can just give notice and move on.

I think this is a pretty good example of the pressure many BTL landlords are facing in the credit squeeze.

Crazy that any tenant would play along with that - why not just move out? He is actually an accessory to mortgage-fraud now and could possibly be hauled into court or even be charged with fraud if this was found out (unlikely since no-one seems to care about mortgage fraud in the government). What's to stop the landlord keeping the money? Your friend would have no comeback except to move out as the deal is illegal so he can't exactly take the landlord to the small claims court. He should just move out and then let's see if the flat can be let for £75 more per month.

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Here's a tale of woe...

A friend of mine pays his landlord £n per month rent, but his landlord is having to remortgage and needs to tell the lender that he's getting £n+75 rent a month in order to get the finance. The landlord is a reasonable sort of fellow and values having good tenants, so he isn't going to ask his tenants to cover the shortfall with increased rent.

Instead, he's asked them to pay the £n+75 rent into his account every month and he'll refund the £75. I think it's called "cooking the books". Well, my friend thinks this seems reasonable and has agreed to go along with the plan. If the landlord renages on the deal he can just give notice and move on.

I think this is a pretty good example of the pressure many BTL landlords are facing in the credit squeeze.

How about your mate asks for an EXTRA £75, £150 per month for the service of aiding and abetting. Or would that consitute blackmail along with the fraud?

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You're right of course. I think he's faced with going along with it or facing a rent increase to cover the extra £75. In which case he'd have to move and face all the hasssle that involves.

A case of personal priciples and how far one is willing to go to avoid extra cost and hassle. Most of us break the law daily on our drive into work.

Your friend needs to record this conversation.

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Guest theboltonfury
Here's a tale of woe...

A friend of mine pays his landlord £n per month rent, but his landlord is having to remortgage and needs to tell the lender that he's getting £n+75 rent a month in order to get the finance. The landlord is a reasonable sort of fellow and values having good tenants, so he isn't going to ask his tenants to cover the shortfall with increased rent.

Instead, he's asked them to pay the £n+75 rent into his account every month and he'll refund the £75. I think it's called "cooking the books". Well, my friend thinks this seems reasonable and has agreed to go along with the plan. If the landlord renages on the deal he can just give notice and move on.

I think this is a pretty good example of the pressure many BTL landlords are facing in the credit squeeze.

Excellent, a real life example of how some tennants are even less intelligent and principled than the BTL people we love to criticise. Tell your friend to stop being such a dopey loser and grow a set of testicles (metaphorically speaking if it's a girl)

Edited by theboltonfury

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Fantastic!

Of course, your friend is an accessory to mortgage fraud, but hey, what's wrong with a bit of lawbreaking eh?

Yup --- The ONLY way -- the ONLY way to be able to "afford"/"buy" property has been, for a long time, to

LIE. To commit Mortgage Fraud. To take out a LIAR LOAN.

There simply is NO OTHER WAY to "AFFORD" property..... What does this say?........

We're in a massive BUBBLE......

Edited by eric pebble

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Instead, he's asked them to pay the £n+75 rent into his account every month and he'll refund the £75. I think it's called "cooking the books". Well, my friend thinks this seems reasonable and has agreed to go along with the plan.

I can't decide whether your friend is nice, naive or just plain stupid to go along with that plan.

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Guest X-QUORK

So what should be done? Call the landlord's bluff?

It's all well and good pontificating on the rights and wrongs of this whilst sitting in your office, surfing HPC, but when faced with the reality and cost of having to move one's family again...that might change a few people's minds I suspect.

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So what should be done? Call the landlord's bluff?

It's all well and good pontificating on the rights and wrongs of this whilst sitting in your office, surfing HPC, but when faced with the reality and cost of having to move one's family again...that might change a few people's minds I suspect.

Putting aside the morals of it, what a good serf he'll make.

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Instead, he's asked them to pay the £n+75 rent into his account every month and he'll refund the £75. I think it's called "cooking the books". Well, my friend thinks this seems reasonable and has agreed to go along with the plan. If the landlord renages on the deal he can just give notice and move on.

I think the safest way would be for the LL to pay the tenant £75 FIRST, then the tenant pays the landlord the £n+75 rent back.

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So what should be done? Call the landlord's bluff?

It's all well and good pontificating on the rights and wrongs of this whilst sitting in your office, surfing HPC, but when faced with the reality and cost of having to move one's family again...that might change a few people's minds I suspect.

Yeah, I agree. If I were in the tenant's position, I'm not sure what I'd do. If I shop the landlord I have to go through the hassle of finding a new place. Tough call, and too easy to call it black or white here. I'd probably try and get some kind of signed document from the landlord describing some "rebate of charges" or somesuch b/s in an attempt to keep me out of trouble.

It IS illegal though, let's be clear on that.

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Like X Quork says, when push comes to shove, if you're in a nice place you might be reluctant to move and risk what a new LL might be like/up to...

If it was me and I didn't want to move, but wanted to help the LL out, then I think maybe instead of getting the £75/month back, I'd get him to pay the council tax or other bills so it worked out the same, but no direct cash bung was actually involved.

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I’m uneasy about this not just from the point of view of the tenant, who is aiding and abetting fraud, but also for all renters generally. This seems to me to be the renting equivalent of bumping up the land registry figures by having “sales prices” and “discounts”. If it started to become a common way around the problem, the average rent for a place would be seen to be higher than it actually is, therefore pushing rents higher in reality. He is stuffing himself and adding to the problems we already have. Only by the truth coming out and common sense coming back can things go back to an even keel, not be trying to keep it going with more and more lies and distortions.

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Here's a tale of woe...

A friend of mine pays his landlord £n per month rent, but his landlord is having to remortgage and needs to tell the lender that he's getting £n+75 rent a month in order to get the finance.

Remortgage and go on a spending spree - its Gordons miracle economy. Its all tax free - only an idiot would work these days.

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Legalities aside though, I'm laughing my a**e off at the though of desperate properdee investers having to jump through hoops to, effectively, pump good money after bad. I bet this landlord keeps quiet about his "portfolio" at dinner parties nowadays!

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Legalities aside though, I'm laughing my a**e off at the though of desperate properdee investers having to jump through hoops to, effectively, pump good money after bad. I bet this landlord keeps quiet about his "portfolio" at dinner parties nowadays!

Have a though for the tenant too.

First, as a good pet, he breaks the law for his landlord (against his very own interest if he wants to buy his own home one day). Second, said landlord, encouraged by how meek and desperate his faithful tenant is, will increase the rent anyway (and who could blame him for it).

A very sad story indeed.

Edited by williamdb

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Be careful. If the landlord is struggling to raise the mortgage now, it's likely he's going to be in trouble very soon. If the bank pressed for repo and finds there is mortgage fraud then they will push to sue the landlord into bankruptcy. If they find out the tenants was complicit in the fraud he is legally liable and can also be sued into oblivion.

What your friend did was very, very stupid. I hope it doesn't ruin him.

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I suppose an easy solution would be to pay the extra as long as the landlord agrees to pay the electric &/or gas bill.

Make sure the bills go in the landlord's name and they have it in writing that the rent includes it!

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This "scheme" stinks to high heaven.

From the information supplied it would appear that the lender will require sight of the landlords bank statements !!! Why??

I would hope that the tenant obtains a revised tenancy agreement with the new figure for rent and makes doubly sure that his deposit WILL be repaid in full at the end of his tenancy.

There's one born every minute

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  • 296 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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