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Original poster

Help please - rent 'holiday' - confused

99 replies

Lostatsea1988 · 23/03/2020 09:53

Hi everyone

My husband and I are self-employed and work in our industry (music) has all but dried up. This month's rent is paid but I contacted my Landlord to ask if they would consider a rent holiday if we need one in the next few months.

She replied to say that they could only afford this if they applied for (and got) a rent holiday from their mortgage company (fair enough) but that they would be charged around £600 extra in interest (if the holiday was for three months) and that this would need to paid by us or by our guarantor (my husband's dad). She said "I'd encourage you to think whether there are any other options open to you (e.g. a family loan, housing benefit etc) before embarking on this path".

She is a decent landlord and we love the house, but I'm so angry - why should I pay my Landlord's mortgage?!

OP posts:
LizzieMacQueen · 23/03/2020 10:55

I don't think you'll get UC if your savings exceed £16,000 which, if you're saving a deposit to buy, you may well have.

Original poster
Lostatsea1988 · 23/03/2020 10:58

We don't have that much - no chance of buying!!!

OP posts:
Robs20 · 23/03/2020 10:59

She will incur extra costs (£600) as a result of taking a mortgage holiday, because you can’t pay your rent. Of course you should cover this cost - and if not surely she will try to recover the rent as normal from your guarantor. If she had no mortgage on the property I wouldn’t imagine she would insist on the extra money, but in this situation, why should she be out of pocket?

mumwon · 23/03/2020 10:59

rent holiday still unfortunately means you are in arrears - & you will have to pay it back - if you look at your contract you may find that it may stipulate - which is legal - that if your in arrears you accrue interest on top. for get her comment about her interest that is irrelevant (though I think the government needs to re - allow tax allowances on mortgage interest which they have stopped to cover this issue on corona virus for Landlords) The most important thing is to talk to landlord & for them to talk to you - they may well be panicking. The interest is part of the debt in this case & will be part of the repayment (check RLA they will have accurate information & up todate with coronavirus)

Absentwomen · 23/03/2020 11:01

Anyfucker is correct. It isnt a 'holiday' at all and certainly it isnt free.

Your rent is your priority outgoing. UC is available. Even a third of rent if that's the case is better then nothing.

I know renters and self employed feel hard done by, but there have been measures implemented. For some reason, many dont feel it is enough.

It has to be enough.

AnyFucker · 23/03/2020 11:01

Your dad should not have signed as guarantor if he was not in a podition to help you out

This situation is terrible, op. Your landlord may not "own" the house, it is mortgaged. She may not be able to afford it without your rent payment. She may have no savings. I doubt she has a 3rd party who is obliged to pay her mortgage for her.

There are more safeguards in place for tenants than there are for landlords.

Use your savings, apply for all the benefits you can, your dad must step up. There are things you can do. Please do not just refuse to pay...that is a scummy thing to do.

Patchworkpatty · 23/03/2020 11:03

No I'm sorry - I can't see how this is right at all. ! This looks like direct profiteering from the difficult situation we are all in. The landlord should not be out of profit.. of course they shouldn't- so charging the cost (interest) on not paying their mortgage for three months is absolutely fine. Claiming the unpaid rent for 3 months absolutely isn't ok. It's greedy and profiteering.

If the landlord doesn't pay the mortgage. (Let's assume 500 per month). For three months. They £1500 in payments but their mortgage is extended for 3 months COSTING them £600.

Landlord now wants the rent paid back AND interest. No, that's wrong. Either one or the other she can either agree a holiday and pass it on, charging what it will cost for BOTH of you to have a 3 month 'holiday' or not agree, and therefore risk the fact that you can't pay and she is restricted in evicting you at the moment.

ShellsAndSunrises · 23/03/2020 11:03

That wasn't what I thought the government were doing with this

What did you think they were doing? (I don't mean that aggressively).

The mortgage holiday seems to have been over-egged a bit. Some people - not everyone, although banks have been asked to be more lenient than they otherwise would - can take a 3 month holiday from paying their mortgage. Most people will incur additional interest that they have to pay as a result, such as your landlord, and some banks are reporting this to credit reference agencies which will make it harder to remortgage or get other credit.

It is a gesture that a lot of people will need, and they won't be able to avoid the interest or credit rating damage if it's applicable, because they can't afford to pay the mortgage. But it's the same as the "no eviction" plan rolled out for renters. It's a short-term measure against people who can't pay today. It pushes the money required down the line, and in a lot of cases, makes it more expensive.

Would you be able to rent without requiring a guarantor now? Moving house will be the only real way to free up the liability from your partners' dad, and although it's not overly practical right now, your rolling contract means you don't need much notice. I'd probably start looking and contacting estate agents, just incase your enquiry has concerned the landlady and she gives you notice as a result too.

It is hard for everyone right now Flowers

PegasusReturns · 23/03/2020 11:05

You have savings, and a guarantor and still want your landlord to pay for your favour?! You’re a CF

Original poster
Lostatsea1988 · 23/03/2020 11:05

I am not refusing! As I said I am looking at all our options, we have applied for UC, we have registered as uber drivers, we're working out how long the savings will last in different scenarios. I just wanted to know what our options are : all the advice us saying talk to your landlord and let them know your situation. That's what I'm trying to do!!

OP posts:
vitaminCandzinc · 23/03/2020 11:07

It is not worth it for landlords to have a mortgage holiday if they can physically pay their mortgage, the reason being because the interest is so high.

If you LL did this they would be doing you a favour. You should have to pay the interest on top. You would lose in the long run, so I don't recommend doing this. I recommend moving somewhere cheaper.

Original poster
Lostatsea1988 · 23/03/2020 11:09

We won't find another house like this is we have to leave, we are self employed and have dogs. The landlady would only take us with my dad as guarantor

OP posts:
DesLynamsMoustache · 23/03/2020 11:09

If it were my tenants, I would just absorb the interest cost. I already contacted ours to say that if they're having problems paying to let me know immediately and we can work something out, be that reduced rent or a mortgage holiday etc. Yes I might end up a few hundred quid out of pocket over the life of our mortgage, but that feels like small fry compared to what's going on in the world and I can afford it so I'll chalk it up to good karma. We were actually in the process of remortgaging to a cheaper deal so if that does go ahead I will pass on some of the savings to my tenants right away, but no idea if it will complete now with everything going on.

It was silly to have a guarantor unable or unwilling to pay, though Sad This kind of situation is exactly why landlords ask for them.

BilboBercow · 23/03/2020 11:09

But op surely you see your landlord shouldn't be £600 quid out of pocket? Or do you not believe she'll have extra interest to pay due to the mortgage holiday?

Original poster
Lostatsea1988 · 23/03/2020 11:13

I've never had a mortgage I don't understand if I'm being honest I hadn't thought about it. I just thought she could apply for three months off and we'd get three months off. And we could catch up later when we are back on our feet. Confused

OP posts:
Original poster
Lostatsea1988 · 23/03/2020 11:14

@Des when he agreed we were earning solidly and could afford the rent. Now his pension has tanked and he's scared. So am I. What a mess

OP posts:
Patchworkpatty · 23/03/2020 11:15

So the OP pays let's say £900a month. So over a 3 month period that's £2700 of arrears. For which she has to be pay it all back with an ADDITIONAL INTEREST COST of £600 ? Wow , you all think that's ok..? When it hasn't actually cost the Landlord anything. The Landlord could afford to offer a rent holiday and not go into arrears on their mortgage but haven't lost out. They haven't paid the mortgage for three months and the increased interest on the mortgage is paid by the tenant.

Glad to see the spirit of helping each other through the difficult times is alive and well with landlords ?

Iwalkinmyclothing · 23/03/2020 11:16

If she takes a mortgage "holiday" she will pay more in interest the long run. Are you prepared to pay more rent the long run ?

I sincerely doubt her landlord has lowered her rent any time their own costs have decreased.

DesLynamsMoustache · 23/03/2020 11:20

At the end of the day, you can't get blood out of a stone. If you can't afford it, you can't afford it. You can offer to pay what you can manage, she can't evict you for now AFAIK as Boris has instituted a ban on eviction proceedings (or rather increase notice to three months and will probably extend again if this is still going on) so you'll just have to deal with it when all this is over. These are unprecedented times and we all need give and take. One person shouldn't be on their knees while the other continues unchanged; you might have to both, you and your landlord, make sacrifices and find a middle ground. We might lose some money if our tenants lose our jobs, but we are still in a better position than they are.

AnyFucker · 23/03/2020 11:21

I just thought she could apply for three months off and we'd get three months off

That's what a lot of people thought because the govt make it look like they were giving out favours, to be fair. The reality is very different

You don't sound like a CF or scummy, btw

viccat · 23/03/2020 11:23

This is why the government package is not helping people equally at all - it mostly helps those who have been employed and paid their taxes through PAYE, and are now going to get 80% of their usual salary still.

I'm self employed and a landlord. I have insurance policies for both but neither cover a pandemic. I have savings for now and will be understanding if my tenants can't pay, but who could have imagined all of their income sources would disappear almost overnight.

filka · 23/03/2020 11:32

The LL should be a bit scared of losing a tenant at the moment. Perhaps it would be better to discuss paying an amount of rent equal to the mortgage on an ongoing basis rather than asking for a complete rent holiday.

Also she should understand that if she calls on the FIL guarantee, that will (have to) cause you to leave too - so the guarantee is a very short term benefit for her.

Of course the LL may be relying on the rent (after mortgage) as her own main source of income. But she's still stuck if you leave. Even if she can find another tenant, the rent is likely to be lower and there will be an uncertain period when the house will be empty.

Ultimately, right now you both need each other, so need to come to an agreement reflecting that.

BonnesVacances · 23/03/2020 11:35

This doesn't make sense. Confused Surely the extra interest to the LL is only applicable for as long as it takes OP to pay off the rent arrears? Not the length of the LL's mortgage. £600 is a phenomenally high interest charge for a few months!

fizzybootlace · 23/03/2020 11:35

UC is covering rent up to the cheapest 30% of equivalent property in your area, not 30% of your actual rent so should cover it if you don't have spare bedrooms. There are further announcements expected today for the self-employed so let's hope it's good news for all.

Teenangels · 23/03/2020 11:39

OP
Let me get this straight you don’t/can’t afford your rent, so have asked to live in your house for 3 months for free and you can’t see why your landlord if they incur additional charges because you can’t pay your rent would want you to pay, I think your lady lady has been very fair to even let you live there for 3 months rent free. It’s called give and take.