Tenant not paying but we are letting without consent on help to buy scheme

Tenant not paying but we are letting without consent on help to buy scheme

10:56 AM, 1st February 2016, About 8 years ago 21

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My partner bought a 1 bed flat on the government’s help to buy scheme a couple of years ago, and almost immediately we found out we were pregnant! We continued to live there during the pregnancy and for a while after the baby arrived, but it was just too small for the three of us so we had to find somewhere else.trouble

On the scheme you’re not supposed to rent the property for 5 years, but my partner didn’t want to lose the asset, so she decided to take the risk and rent it without telling the lender.

Problem is, now we have a tenant who hasn’t paid rent for two months and is refusing to leave (for the time being at least). He claims he’s fallen on hard times and has nowhere else to go, and he may be telling the truth (it’s not clear). But bottom line is we need the income to pay our own rent, so we need him out asap.

We’re currently talking to solicitors, but I suppose our main concern at the moment is whether getting him evicted is likely to drop my partner in hot water for renting without consent.

Any help would be greatly appreciated!


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Neil Patterson

10:58 AM, 1st February 2016, About 8 years ago

Oh I am not sure how to comment on this as you already know you are in sticky situation.

I would start by contact our tenant eviction specialist first. See >> http://evicting-tenants.net/

Rob Crawford

12:33 PM, 1st February 2016, About 8 years ago

You would be very unlucky if the mortgage company found out unless someone tells them. On the basis that you have already committed a crime, I doubt it could get much worse. I suggest you keep quiet and hope the mortgage provider does not find out. Deal with the eviction and hope your tenant leaves asap. The sleepless nights should deter you from doing it again in the future!

Kelly Joanna

14:01 PM, 1st February 2016, About 8 years ago

There's no reason why the building society should find out however, if they do you will face a financial penalty most likely.
You need to seek legal advice immediately. You will struggle to evict if you haven't done the in going paperwork correctly. Potentially an expensive mistake.

Luke P

15:12 PM, 1st February 2016, About 8 years ago

Pay an expert to sort the tenant...whether that be getting them to leave or pay up. Then never get into this situation again. If you haven't set the tenancy up correctly you could have more grief with the tenant than from the Hep to Buy scheme.

Steven Burman

15:23 PM, 1st February 2016, About 8 years ago

Please take note of the advice you have already been given by others on this post and act. Chances are your mortgage provider will never know.

Once you have the situation sorted please do not repeat your mistake!

This kind of irresponsiblility is exactly why ALL private landlords get tarred with the same brush. The responsibile majority are not motivated by greed. Please do not return to being one of the irresponsible & greedy few.

Chris Byways

17:57 PM, 1st February 2016, About 8 years ago

There is also the question of advising the taxman of the rental income.
And who pays the council tax?
There is also a long audit trail of utilities and any benefits even for rent assistance, this can all get very involved. Take care not to get deeper in, when honesty earlier may be better?

Mark Alexander - Founder of Property118

9:58 AM, 2nd February 2016, About 8 years ago

You're not likely to get much sympathy over this. You have abused the system and it appears your tenant is about to do the same to you. Some would call that Karma.

Charles King - Barrister-At-Law

11:23 AM, 2nd February 2016, About 8 years ago

There is very little prospect of you experienceng any problem in this scenario. You have granted a legally enforceable tenancy whatever your relationship to the lender, and you can terminate it by giving notice and issuing proceedings in the normal way. If you were to come clean and inform the lender the most likely thing they would do is sting you for additional payments to make up the difference between the residential mortgage rate and the buy-to-let rate. Contrary to some of the other posts here I have every sympathy for you. Life presents unexpected problems all the time, and the 'rules' don't accommodate those changes. Karma doesn't come into it (or many of the financiers would be in jail, not just for their reckless gambling with other people's money, but for their greed, and for artificially inflating housing costs for ordinary people) You made an understandable decision, and as for it being a crime, who is going to prosecute you for it? Good luck, I'm sure you'll be fine

Adam Davies

13:00 PM, 2nd February 2016, About 8 years ago

Totally agree with Charles, couldn't have said it better myself.

Only thing I wonder is how serious the implications would be. After all, this is not you renting out a house on a residential mortgage, this is a house you're renting which you bought on the help-to-buy scheme. May be worth digging around or calling them up anonymously just to find out the consequences, if any, or anything mentioned on early paperwork? I'm sure if they see it as a genuine, unexpected turn of events, they'll have proceeders in place that are fair and reasonable.

Quite surprised by Mark's brutal response. Our government are the abusers of this system, we can only play the cards we are dealt in the way which works for us.

Annie Landlord

13:19 PM, 2nd February 2016, About 8 years ago

Hi Alan,
another issue is the deposit. Did you take one, and if so did you comply with the regs? Do you have a written, or just a verbal agreement? I think in your situation I would talk to a property lawyer to get some advice.

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