Facing possible eviction? There are alternatives. Avoid Repossession
1. Rent Out The Whole Property to avoid repossession – If you let your whole property to a family, the tenancy will normally be an Assured Shorthold Tenancy (AST). Renting is a very vast subject that I could write 100’s of pages on, to keep this report short I have listed only a few bullet points below, I would recommend Google searching ‘How to Rent my Home’ where you will find an abundance of information. We also offer a service called ‘Guaranteed Rent’ where we will deal with the letting of your property for you at a better rate than your typical Lettings Agent, if interested give us a call using the contact details at the end of this report and we will run you through the process.
With an AST, you have guarantees and rights as well as your tenants, for example:
- You can get your property back after six months provided any fixed-term agreement has ended and you have given your tenant two months’ notice to leave the property.
- You can charge the market rent.
- You can end a tenancy at any time if your tenants don’t pay the rent, behave anti-socially or damage the property, including within the first six months or initial fixed term if the tenancy agreement provides for this, usually a process to follow.
Some of the landlords responsibilities include:
- Ensure safety of gas and electrical appliances that you supply
- Fire safety of furniture and furnishings that you supply
- Providing an Energy Performance Certificate for the property
- Protecting your tenant’s deposit in a government-approved scheme
- Repairs to the structure and exterior of the property
- Repairs to heating and hot water installations
- Repairs to sinks, baths and other sanitary installations
2. Rent out 1 or More Rooms – As above you can find an abundance of information on Google by searching ‘Renting out rooms in your home’.
- You are a resident landlord if you let out part of a property, which is your only or main home. If so, you can give less notice to end a letting because you are more vulnerable in your own home. Also, a tenant does not have the right to challenge the level of agreed rent.
- If you have a mortgage on the property, you may need permission to let from your mortgage lender.
- If your home is leasehold, you will need to check the lease terms before letting any part of the property.
- Renting this way could fall under a ‘tenancy’ or ‘licence to occupy’, the difference is explained below:
- If you let a room exclusively to a person and have to get permission to enter that room, then it is a tenancy. If you, or someone working for you, provide a service like cleaning or bedding, which requires unrestricted access to a let room, then it is a licence to occupy. A let will also be a licence to occupy if a person has to share their room(s) with another person they did not choose.
3. Ring the Mortgage Co/Lender & Negotiate:
- A Payment Holiday – Essentially, a mortgage payment holiday is an agreement you can make with your lender which allows you to temporarily stop or reduce your monthly mortgage repayments. Whether you are eligible to take a payment holiday, for how long and the conditions you must meetfirst will depend on your mortgage deal and your specific circumstances.
- Adding Arrears to the mortgage – If you’ve already fallen behind, your lender will usually suggest a way to pay off the arrears gradually or alongside your usual payments. If you can’t meet the extra payments, you may be able to delay them for a while or add them to your loan in order for you to get back on your feet. It will depend on your track record.
- Reduced Payments or interest only – This may sound a little too good to be true. However, you would be surprised how many mortgage companies would actually like to help you keep paying your mortgage. It is in their interest to prevent you defaulting on your mortgage. If they have to repossess your house, they will usually lose considerably. It is not guaranteed to work, but for the time involved it is definitely worth trying.
How To Avoid Repossession
To enquire about a no-obligation quick house sale offer and how we can help you avoid repossession, either complete the form provided on the Contact Sell My House – Fast – London page.