• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

issue with company check on flat rental

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    issue with company check on flat rental

    Hello,

    I am trying to rent a flat in London near my new contract place. The idea was to pay directly from my company account. I found a flat I liked, did an offer, the landlord accepted it according with the letting agency and paid £600 of the PTAC (Pre Tenancy Agreement Charge).

    I passed the agency the contact details from my accountant as they asked for. They told me the referencing company was the "The Landlord Hub". The day after, the letting agency tells me:

    "After having sent your details over to the referencing company unfortunately your company has not passed the criteria that we require.

    The only way that we would be able to continue with this tenancy is to pay the entire term in advance, is this feasible?

    Another offer has also come forward on the property from a previous viewing that took place before you paid your PTAC payment.

    Please do let me know how you would like to proceed."


    The reason was, according to the letting agency:

    "We have purchased the risk report from Experian and unfortunately the company is failing to meet our minimum criteria in relation to credit limit, credit rating and Delphi score. Their credit limit is £1,600 and the credit rating is £800. Their Delphi score is 56/100, our minimum requirement is 60."

    Why is a credit checking of my company needed? I thought they needed to check the state of the company accounts through my accountant. In the bank account from my company I have around £110,000. And I've never asked for any type of credit/loan for my company. I told them from the beginning that I have enough funds in my company.

    They last mail (from the letting agency) was:

    "Hello,

    The reference is checked through Experian so they will reference you on what you have filed through your accounts not what you currently have.

    There isn’t a full report as you need to be checked for these credentials first before they put you through the remaining reference process. There wouldn’t be any way to get round this other than paying the rent in advance at this stage which I understand that you are happy to do?

    As there is another offer on the table I am going to give you the opportunity to increase your offer as theirs is currently higher than what you have offered.

    I look forward to hearing from you and how you would like me to proceed."


    So it results they even haven't contacted my accountant.

    Could somebody help me or give some advice on how to proceed? I offered to pay the entire 1 year rent in advance. But they are using it like it is changing the initial conditions (in the PTAC), so they could accept another offers.

    "Ok so your company will pay the rent upfront still, that’s fine I just need to let the landlord know because the terms of the offer have still changed from monthly to annually."

    Thanks

    #2
    Are you mad? What if your contract is pulled?

    Comment


      #3
      Originally posted by stek View Post
      Are you mad? What if your contract is pulled?
      I had the agent play funny buggers with me on a flat after I'd paid the deposit as well and I suspect it was purely on someone putting a better offer in. It's disgraceful they can chop and choose once you've put a deposit down...

      But anyway.. What stek says without a doubt.
      Last edited by northernladuk; 2 March 2017, 00:11.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by stek View Post
        Are you mad? What if your contract is pulled?
        I was going to write that but I couldn't be as polite.

        OP find somewhere to be a lodger. This is NOT a houseshare.

        You are looking for a room with your own bathroom where either the owner works nights or works in a different part of the country. You can then pay for Monday to Friday, but leave a bag there over the weekends.
        "You’re just a bad memory who doesn’t know when to go away" JR

        Comment


          #5
          Originally posted by northernladuk View Post
          I had the agent play funny buggers with me on a flat after I'd paid the deposit as well and I suspect it was purely on someone putting a better offer in. It's disgraceful they can chop and choose once you've put a deposit down...

          But anyway.. What stek says without a doubt.
          yeah, it looks like similar situation. The failed credit check seems a bogus excuse just to be able to auction the flat again once they've got another offer.

          Obviously I am not the first one this is happening. Does somebody know any tenant advice body or similar I could forward the case. I'd like to proceed even if I get the flat.

          About a possible earlier termination of the contract, I'm quite confident it's not going to happen. Even in the remote case, i've got in line a couple of them in the same area. But the convenience of getting or not a flat is not something I want to discuss in this thread. Thanks anyway

          Comment


            #6
            Originally posted by biergarten View Post
            yeah, it looks like similar situation. The failed credit check seems a bogus excuse just to be able to auction the flat again once they've got another offer.

            Obviously I am not the first one this is happening. Does somebody know any tenant advice body or similar I could forward the case. I'd like to proceed even if I get the flat.
            There isn't one.

            You can phone up Shelter for advice. They will then log your case and may use it as another case/statistic to illustrate how crooked agencies are to push for a change in policy.

            You can go to a consumer forum and post your case. However that has less chance of someone picking it up to push for a change of policy.

            If you have proof they ripped you off then you can report them to Trading Standards but Trading Standards is under funded so they won't do anything unless the agency have ripped of 10+ people.
            "You’re just a bad memory who doesn’t know when to go away" JR

            Comment


              #7
              Originally posted by SueEllen View Post
              There isn't one.

              You can phone up Shelter for advice. They will then log your case and may use it as another case/statistic to illustrate how crooked agencies are to push for a change in policy.

              You can go to a consumer forum and post your case. However that has less chance of someone picking it up to push for a change of policy.

              If you have proof they ripped you off then you can report them to Trading Standards but Trading Standards is under funded so they won't do anything unless the agency have ripped of 10+ people.
              Yep but it's just not worth it. Get your deposit back and go find another flat which is what I did. Minor annoyance at the time but ancient history now.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Why not just apply personally and claim the expense back from your ltd?

                Comment


                  #9
                  Originally posted by JoJoGabor View Post
                  Why not just apply personally and claim the expense back from your ltd?
                  Because the credit check issue is a fiction. They've had another offer and they are using it to leverage for more rent, or at least for the full amount up front.

                  Comment


                    #10
                    I need to know how it is possible that my company gets this valoration:

                    ""We have purchased the risk report from Experian and unfortunately the company is failing to meet our minimum criteria in relation to credit limit, credit rating and Delphi score. Their credit limit is £1,600 and the credit rating is £800. Their Delphi score is 56/100, our minimum requirement is 60."

                    Never have asked for a credit, doesn't have any debt, it has around £110,000 in the business bank account and I am in a contract of a £500 rate. And nobody contacted my accountant. Does somebody know if it makes sense? or better said,if it could be real?

                    Comment

                    Working...
                    X