Reply to: Estate Agents Credit Questions & IR35

[NotAllThere]

private

Perhaps it was Pirate

[r0bly0ns]

HTH

Not really, I just ignore it.

HTH

[oracleslave]

Not from Private Landlords, no. A priate landlord has the right to choose who they let their property to.


If they can't get a roof over their head from private lettings, that's what coucil houses and housing benefit were invented for.

private

council

HTH

[ittony]

If they can't get a roof over their head from private lettings, that's what coucil houses and housing benefit were invented for.

That's quite obviously not what council houses and housing benefit were invented for.

[r0bly0ns]

Noone has a right to a roof over their head eh?

Not from Private Landlords, no. A priate landlord has the right to choose who they let their property to.


If they can't get a roof over their head from private lettings, that's what coucil houses and housing benefit were invented for.

[NotAllThere]

Noone has a right to a roof over their head eh? Nice.

Fine. I'll move into your spare bedroom then. Don't expect any rent.

[ittony]

It's very much my business to ensure that it's likely that my tenants can pay the rent. A newly self-employed person is a risk, and doesn't have the right to demand "a roof over their heads".

Noone has a right to a roof over their head eh? Nice. Well, whatever business you think it is of yours to pry into your tenants' finances, they have more business knowing yours, so I'd be interested to know what details you generally disclose.

To the O.P., I suggest you evaluate the risk and consider offering six months rent up front, for which you should be able to secure a substantial discount. Make sure you do your research into the landlord's situation though because a lot of these Buy To Let jokers will be going bankrupt in the next few years.

[glashIFA@Paramount]

Rubbish, it's a very bad thing. It prevents the newly self employed from securing a roof over their heads and frankly it's absolutely none of the owner's or agent's business. What details of the landlord's financial position does the tenant get to see? None at all. Yet the consequences for a tenant who rents from a landlord with untenable finances are much worse than the other way round.

Not rubbish at all. It doesn't prevent anyone getting a roof over there heads as long as they're viable. Why shouldn't a landlord know a bit about the finances of a person moving into their property, after all they still have to pay the mortgage, not the tenant. The fact that the landlord has been able to get a mortgage tells the tenant something about the landlords finances. I've had tenants who've gone into my properties without reasonable checks being carried out on them - i let them go in because they sounded "plausible" and a couple of basic checks would have found them out - never again!!! It takes a LONG time and a LOT of money to get them out.

[ookook]

I had the same problem when a couple of us tried to rent a flat in Manchester with our newly formed companies. In the end we offered three months rent up front and that made any problems with credit checks / company financial history etc go away... might be an option depending on your circumstances

[NotAllThere]

...frankly it's absolutely none of the owner's or agent's business. ...

It's very much my business to ensure that it's likely that my tenants can pay the rent. A newly self-employed person is a risk, and doesn't have the right to demand "a roof over their heads".

[ittony]

If you're looking at renting a property that they have on their books then it's a straightforward check to assess that you can afford the rental on the property, both now and going forward. This is no bad thing.

Rubbish, it's a very bad thing. It prevents the newly self employed from securing a roof over their heads and frankly it's absolutely none of the owner's or agent's business. What details of the landlord's financial position does the tenant get to see? None at all. Yet the consequences for a tenant who rents from a landlord with untenable finances are much worse than the other way round.

[monkeyBoy32]

They are going to try and sell you a mortgage through there financial arm.

I hate estate agents that do this - I was once told I couldn't view a property with an EA until I'd spoken with their financial advisor !!

Makes me so angry.. I went into an estate agent, asked if I could view a couple of houses, they asked for my phone number so they could give me a call when the houses were available for viewing. Next day I get a call from some p...k in the city saying "Hi, you spoke to one of my colleagues yesterday, I've got you booked in to come and meet me tommorrow to discuss your financial requirements - can you do 5.30?"

Told him I don't deal with aggressive sales and that I wouldn't use that EA from now on..

How these people sleep at night I'll never know...

Sorry.. doesn't answer the thread.. just fancied a rant..

[glashIFA@Paramount]

Hi Can anyone help with this. I have browsed the forums for a similar discussion but didnt spot anything.

I am currently in the process of moving house and have received a credit / employment document from the Estate Agents to complete.

A section of the document is employment status and asks if I am employed or self employed. It also requests an annual gross salary.

Now I am set up using IR35 and do not believe myself to be self employed but the issues I have are:

a) If I mention IR35 to this particular estate agent I do not believe they will understand it enough to NOT class it as self employment where they will then most probably demand two years of accounts which I currently do not have.

b) If I were to calculate my Gross salary using conventional methods the Agents may attempt to calculate my Net by deducting 40% instead of the 20% I pay on IR35. This will then make my take home pay seem considerably lower than it actually is and may result in being rejected on the application.

Is it possible or advisable to calculate a different gross annual projected figure which if the agents then apply a 40% deduction it would then total my accurate take home figure.

Thanks in advance for your time with this.

If you're looking at renting a property that they have on their books then it's a straightforward check to assess that you can afford the rental on the property, both now and going forward. This is no bad thing. They act for the owners of the property and don't want to be putting in a bad risk tenant. As the rental company they have a duty of care to the property owner.

[Archangel]

Hi Can anyone help with this. I have browsed the forums for a similar discussion but didnt spot anything.

I am currently in the process of moving house and have received a credit / employment document from the Estate Agents to complete.

A section of the document is employment status and asks if I am employed or self employed. It also requests an annual gross salary.

Now I am set up using IR35 and do not believe myself to be self employed but the issues I have are:

a) If I mention IR35 to this particular estate agent I do not believe they will understand it enough to NOT class it as self employment where they will then most probably demand two years of accounts which I currently do not have.

b) If I were to calculate my Gross salary using conventional methods the Agents may attempt to calculate my Net by deducting 40% instead of the 20% I pay on IR35. This will then make my take home pay seem considerably lower than it actually is and may result in being rejected on the application.

Is it possible or advisable to calculate a different gross annual projected figure which if the agents then apply a 40% deduction it would then total my accurate take home figure.

Thanks in advance for your time with this.

How do you manage to only deduct 20% of your gross?

[malvolio]

They are going to try and sell you a mortgage through there financial arm.

I hate estate agents that do this - I was once told I couldn't view a property with an EA until I'd spoken with their financial advisor !!

It's not necessarily a bad thing, unless they are limited to their own providers (in which case don't even bother). My last one wasn't and came up with exactly the same solution as my own IFA did. They are required by law to offer the best deal, after all, and it does simplify some of the paperwork.

Of course, they get a payback from the mortgage company, but that would't come to you anyway.