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lizziewells
09-04-2010, 19:05 PM
HI all.

I am in the process of letting my house to 3 sharers. They are all foreign. 2have lived in the UK for 5 years and have a credit trail, however the 3rd has only just come to the country and although working, has no credit history.

I only want to let to them if all 3 tennants can be covered by rent guarantee.

My agent tells me it will be fine. The 2 who have history can go on the TA and I will get rent guarantee. What then happens if the 2 who I have insurance on leave and the 3rd one stays behind and defaults on paying rent?

Without his name on the agreement, can I still apply for possession using 21 and 8?

Thanks.

mind the gap
09-04-2010, 19:26 PM
HI all.

I am in the process of letting my house to 3 sharers. They are all foreign. 2have lived in the UK for 5 years and have a credit trail, however the 3rd has only just come to the country and although working, has no credit history.

I only want to let to them if all 3 tennants can be covered by rent guarantee.

My agent tells me it will be fine. The 2 who have history can go on the TA and I will get rent guarantee. What then happens if the 2 who I have insurance on leave and the 3rd one stays behind and defaults on paying rent?

Without his name on the agreement, can I still apply for possession using 21 and 8?

Thanks.

If you are proposing to have all three on a joint tenancy agreement then they will all be jointly and severally liable for the whole rent. If you are concerned that some of them might move out before the end of the fixed term, I would not be letting to them in the first place.

Could the 3rd one not get a UK based guarantor?

However, if you grant a tenancy to the two who are covered by the rent guarantee and not to the 3rd one, I'm not sure what the situation would be in terms of ending the tenancy if the first two leave.

Poppy35
09-04-2010, 20:43 PM
can T 3 not be placed in the house under licence and therefore entitled to live there but no legal responsibility so if you need to evict T1 and T2 via S8 or S21 route then T3 will have go also.

TenantsLuvMe
10-04-2010, 03:56 AM
I am in the process of letting my house to 3 sharers. They are all foreign. 2have lived in the UK for 5 years and have a credit trail, however the 3rd has only just come to the country and although working, has no credit history.

I only want to let to them if all 3 tennants can be covered by rent guarantee.


There are reference agencies that can carry out international tenant assessments/checks, such as the one that is run by the same people who run this forum, which is called TenantVerify.

If the 3rd person has a credit history where they came from (i.e., they were not a student before applying to rent your home), the agency will find this information.

Lawcruncher
10-04-2010, 08:56 AM
This is not making sense.

If you let to A and B you can get a rent guarantee.

If you let to A, B and C you cannot get a rent guarantee.

?

mind the gap
10-04-2010, 10:19 AM
This is not making sense.

If you let to A and B you can get a rent guarantee.

If you let to A, B and C you cannot get a rent guarantee.

?
Perhaps the rent guarantee for A and B combined is limited to a certain amount i.e. to an amount equivalent to two thirds of the whole rent, rather than 100% of the whole rent?

I'm guessing really as I don't have much experience of how rent guarantees work for joint tenancies. Messily, I should think - and with every effort made the insurer to slither out of paying up.

westminster
10-04-2010, 11:03 AM
My agent tells me it will be fine. The 2 who have history can go on the TA and I will get rent guarantee. What then happens if the 2 who I have insurance on leave and the 3rd one stays behind and defaults on paying rent?
Joint tenants cannot end the tenancy before the end of the fixed term by just 'leaving'. So if T1 & T2 moved out, they would still be legal tenants and would remain liable for rent to the end of the fixed term, regardless of whether the third person (T3) was living there or not/paying rent or not. (Of course, if there was no tenant remaining in the property, and you re-let the property, this would show that you'd accepted a surrender, and the T's liability for rent would end).


Without his name on the agreement, can I still apply for possession using 21 and 8?
If T3's name isn't on the agreement, you would serve notice at the rental property address on the joint tenants who'd moved out (T1 & T2). If you went on to obtain a possession order, the bailiff would evict whoever was living in the property, which would include T3 if he was still living there.

lizziewells
11-04-2010, 19:01 PM
This is not making sense.

If you let to A and B you can get a rent guarantee.

If you let to A, B and C you cannot get a rent guarantee.

?

Yes, that's it. Because of T3 not having any credit history, previous LL ref etc., and has no guarantor, the rent guarantee insurance cannot be applied.
I have sinced been told that T3 can go on the TA as a permitted occupier.
I am still very unsure about it and am concerned that if the situation of non payment does happen, the insurance company will not pay up as not all of them have fullfilled the referencing criteria.

Thanks everyone for the replies.

bullybantam
11-04-2010, 19:23 PM
On a related point - does anyone get CRB checks done?

You can get a CRB check done for £23. But this must done by the tenant, it's also proof of identity - though of course you'd need photo id to check they were person on the CRB document.

P.Pilcher
11-04-2010, 22:53 PM
You would be well advised to make no reference to the third person on the tenancy agreement. The two tenants you have should be asked to consent to the thrid occupier doing so as their guest and coming to any private arrngement with them about rent nd other household expenses. Under no circumstances should the third person pay you any rent. If the two tenants leave early thereby failing to pay their rent, then section 8 rules should be used to evict any other person remaining in the property, unless of course by this time person 3 has obtained a suitable credit record to be offered the tenancy on his own or with other suitable people.

P.P.