No Rent For Buy To Let Landlords

by BakerStreetPropertyMeet

18:54 PM, 18th March 2020
About 4 months ago

No Rent For Buy To Let Landlords

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No Rent For Buy To Let Landlords

Its a distressing time for Buy To Let (BTL) Landlords with tenants affected by Coronavirus (COVID-19). Now if tenants don’t pay their rent, landlords won’t be able to evict them for non rent payment using a Section 21 notice.

This poses a problem if tenants start to demand rent payment holidays of their landlords. In this video below Ranjan addresses the problem faced by residential buy to let landlords and the array of other costs and overheads they now face.



Comments

Mark Alexander

18:03 PM, 19th March 2020
About 4 months ago

Reply to the comment left by JB at 19/03/2020 - 17:54
I think it will be a nightmare to let or sell anything at the moment.

JB

18:06 PM, 19th March 2020
About 4 months ago

Reply to the comment left by Mark Alexander at 19/03/2020 - 18:03
Yep. Referencing will be interesting!

Mark Alexander

18:11 PM, 19th March 2020
About 4 months ago

Reply to the comment left by JB at 19/03/2020 - 18:06
Just heard that DAS are no longer underwriting and new RGI cases. They are the UK largest RGI insurer and act as a reinsurer for most other providers. They will pay out on existing policies though, for which I am very relieved because the vast majority of mine are covered.

Chris Bradley

18:11 PM, 19th March 2020
About 4 months ago

I've a small. Portfolio, two student properties and one family. Both students lets have told me that the university is shut till Sept and they are all going home. If their student loans come in for next term then they should pay the rent, if not they will have no means to pay the rent, wait they can apply for benefits, but they live at home so no rental benefit. The btl mortgage holiday is not well explained, it looks to tenants like free rent, not delayed rent. The btl mortgage holiday means little to me, as the property have very low borrowing so I can use the income to live on. I have a little put aside for home repair emergency, I do not have rent guarantee insurance. The emergency fund will be gone in about 6weeks. Then I'll need benefits or borrow to eat. Would I qualify for benefits? What happens if the students don't pay the utilities to end contract, there will be reconnection charges. I'll also need to arrange someone(at a cost) to keep a check on my properties for insurance on unoccupied properties to be valid, should I tell my insurance company that's students have just left and pay an inflated premium for unoccupied or wait 30 days to do so. So much uncertainty,

Lee Humby

9:51 AM, 20th March 2020
About 4 months ago

Reply to the comment left by Mark Alexander at 19/03/2020 - 18:11
Rent guarantee insurance is worthless right now as it's predicated on eviction, which the government has now outlawed.

joss URCH

12:36 PM, 20th March 2020
About 4 months ago

Hi all, I have just had 2 flats ask for a holiday in rent payments as they are self employed they request the rent be waived, (their words).
My email reply so far is as follows.

Dear Tenant,

We understand that this is a very difficult time with the impact of the Corona virus affecting many people in different ways.

We would like to reassure you that we are keeping as up to date as possible on current advice and legislation for both tenants and landlords. Under difficult circumstances we will do our best to find the solutions that work for everyone going forward.

In the first instance if you are going to struggle to make your rental payment for April 2020 we would ask you to do the following:

1) Please ensure that you have spoken to your family, friends, guarantors and fellow house mates to see if they can help you to make your payment.

2) If you are still unable to make the full payment please put in writing via email to us:
a) the reason for the shortfall
b) the amount that you can pay

We will then offer you a payment plan for you to repay the outstanding amount in installments over a period of several months and this repayment period will begin in July 2020.

Note: We are looking in to new legislation regarding mortgage lenders being able to defer mortgage payments for up to 3 months. Although these are being variously described as “Payment Holidays” or “Suspension” This simply means that those payments will still be due but at a later date.

With the payment plans we will be offering you a similar arrangement where your outstanding payments are deferred.

Yours sincerely,

Mark Alexander

13:02 PM, 20th March 2020
About 4 months ago

Reply to the comment left by Lee Humby at 20/03/2020 - 09:51
The insurers will pay out in the event of missed rents though, and they will also have to deal with collections and/or evictions later. It is not worthless,. In fact, for those who have it, it will be their Savior.

JB

13:15 PM, 20th March 2020
About 4 months ago

Reply to the comment left by joss URCH at 20/03/2020 - 12:36
I told one of my students that I would need proof that the college was shut, that he didn't have a loan and that his parents had no income due to corona virus (which is what he told me). He said it 'seems like a lot of hassle considering it just delays things' and he'd look at other options. I await to see if he manages to find the money.

Judith Wordsworth

22:46 PM, 20th March 2020
About 4 months ago

Reply to the comment left by at 19/03/2020 - 09:19
My MP is selling their rental properties...… gave me the reason that 5 weeks money for a deposit covers nothing

Grumpy Doug

23:20 PM, 20th March 2020
About 4 months ago

This is on the Student Loan Company (SLC) website, updated today.

"Will I still get my next student finance payment?
SLC can confirm that students will receive their scheduled or next instalment of their maintenance loan at the planned start of their summer term, regardless of whether their university or provider has made alternative arrangements for teaching."

I've already had a couple of chancers, hopefully headed off at the pass !! I'm sure there'll be more although most of mine are staying put and doing the best that they can.

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