all you landlords

[jbonding]

my best mate rents his house out to his brother who has 3 kids and on benefits, the house is in his misses name and she claims she cant get insurance for the gaff because hes on benefits. i suggested their might be a premium like renting to students but i cant see it being a problem if it is i can see a market for this. i think she wants proffesional people, what she means is middle class even though she doent believe in a class system, typical. whats the crack? ive not done a search can anyone recommend anyone

 

[topbanana]

i believe she could be on dodgy ground renting to a relative, as the council who would pay the rent might not allow it as they believe fraud is more probable in these circumstances!
as for the insurance i use property plus from norwich union through a broker.
i have been advised that mentioning dss means a higher premium.
this is because dss are viewed as a higher risk.
however, if its for people who they trust, it would be a case of weighing up the risks involved in not mentioning it on the form and the higher costs or possible invalidation of the policy.
perhaps someone else might have experience of a claim being refused or accepted in similar circumstances.

 

[jbonding]

i know its dodgy do you remember bread they are not married and the house is in her name although they do have a house together so im not sure if shes classed as relative id of thought because their not blood reletives and not married it would be ok it would be interesting to know..

 

[topbanana]

if there not married i guess that'll be ok and she wouldn't be classed as a relative.

 

[jbonding]

theyve got a financial adviser who says he cant find an insurance company, shes tried five, im sure shes on the blag just to get that extra bit of rent she would get off someone paying the rent, shes loosing out on about £50 a month so i think shes on the blag, is it this hard to get house insurance?do you think shes blagging?is there a market for this type of insurance?

 

[topbanana]

does sound that way.
theres always a company that will provide nearly any service, at a cost.

 

[Sandy Beech]

This suggests that she may really be having difficulty in obtaining insurance. Just a thought - why should she be expected to subsidise them to the tune of £50-00 per month?

As a rule of thumb, potential lenders will expect the rent to be charged to be between 130-150% of the mortgage costs. They may also stipulate who you may or may not take as a tenant. You may find diplomatic and DSS tenants are excluded. Some diplomats, in the past, have used diplomatic immunity to avoid paying rents while DSS tenants may be excluded because some local authorities are late with rent payments and refuse to re-house tenants without a repossession order.
http://www.moneyextra.com/guides/buy-let-mortgages-011436.html