View Full Version : Reliable tenant wants change to HB
06-03-2006, 15:25 PM
a perfect tenant of two years plus has had a hard time of it with her business and has told me that she intends to apply for HB. Her record is perfect and we are on good terms. Her situation is not desperate.
The problem is this, I seem to recall that somewhere in my BTL mortgage details that the lender does not accept HB in properties in which they have an interest.
Am I obliged to tell the lender?
Is it possible that as a result of telling the lender I might have to evict?
Does the data protection act protect the tenant anyway, thus preventing me from informing the lender?
06-03-2006, 15:40 PM
I would be inclined to uncomplicate this a little - so long as the tenant pays the rent and you are able to pay the mortgage, the lender is not really going to be concerned until and if the point is reached that arrears accumulate (i.e. tenants fails to pay you, you fail to pay them)
I cannot see how this tenant could be evicted other than under S21 at the end of a fixed term UNLESS she becomes in arrears and you process in the normal way for a S8/ground 8 repossession.
Effectively, if you told your BS and they said evict - you would be denying the tenant of her right to apply for HB. In any case, she has told you she will apply, she may not get any HB, or only get a fraction of the rent and unless the payment is made direct to you, you will be unaware of exactly how much if any she gets each week! (this is the element of the data protection act - the application is confidential between her and the HB authority unless she desires otherwise).
You would be saying to her - you must pay the rent, if you apply for HB for help paying the rent, I will evict you. If you do not pay the rent because of my prohibition above, I will still evict you!
Personally, I would not knee-jerk to her statement - bide time a little and only tell the BS if she accumulates arrears which might affect your ability to pay the mortgage on the property.
06-03-2006, 15:57 PM
I would agree with David. My mortgages state "working people only" but I don't imagine for a minute that my mortgage provider would insist on an eviction as long as they get their money. I do take working people only but I wouldn't evict them if they were to lose their jobs once they had become tenants, as long as the rent is paid of course.
06-03-2006, 16:10 PM
Worth checking what your buildings insurance policy says too... mine is for "working people only" (as I only take working tenants, too) but I recently enquired what would happen if an existing tenant was made redundant. It was simply a case of letting the insurance co know and paying a bit more premium; very little as it happens.
But you can bet your bottom dollar that in the event of a claim, if and when the house was occupied by a non-working tenant, and I hadn't let on, then the insurance policy would be declared void...
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