Hi all, I’ve now had the same tenants (Martin and Irene) for 5 years. Last year they got married. Last month Martin suddenly died. Irene wants to remain in the property. Do I have to issue a new tenancy agreement in her sole name or amend the existing to remove Martin or do nothing? She is a nurse and works at the local hospital. She said she can’t afford to pay everything on her own. She is going to look for a part time evening work and has asked if she can take in a lodger (another nurse from the same hospital). I think this falls under the Rent a room scheme, where the HMRC allow up to £7200 per year tax free ( not sure my mortgage lender would allow this?) Would you allow this ? Should I suggest/ insist that this other person becomes a joint tenant? I seem to recall something about the length of time a guest can legitimately stay especially a paying one? Also, not sure how it would affect my property insurance? My friends say I should a S21 asap, but she’s been a good tenant whose circumstances have changed through no fault of her own, however in the past when I’ve let my heart rule my head it’s almost always ended up being to my detriment. All comments, advice and warnings warmly welcomed. Many thanks.
Check with mortgage lender and insurance, expect insurer would require others living there and responsible for rent to have been referenced.
Tell her you are willing to consider but just like any other 2 people sharing, you need to be businesslike and consider whether their joint income means they can afford - because it’s not in either Irene’s or your interest if she is going to struggle. You’ll also have to do all the same other checks [referencing, right to rent etc] that you would with any other new tenant and probably re-do for Irene as so long since original checks [she may have different income now and rent will be different]. At same time she has been a good tenant and has responsibly told you pretty soon, rather than fall into arrears, and is making plans to increase her income, so [with your head] that is a def positive. You kept Martin & Irene for 5 years and are considering so they presumably kept the place well enough, also a good point in her favour, compared with the risk of new tenants.
I would think a new tenancy [which does mean some costs to you, as well as re-issuing the EPC, gas safety certificate etc etc] which is joint with a new person as well would be better as shows more of a commitment from 2nd person, and because you then have more direct contact with them, but you could always try the subletting option [if mortgage lender/insurer and ref checks etc all ok] as an intermediate option, for say the next 2 or 3 months to see if that works out [what if she finds she cant stand her new lodger…], and then use notice plus s21 to end current tenancy [while you still can] whilst agreeing to then start a new tenancy with both as new joint tenants. You could start by telling Irene you’d prefer a new tenancy with both as joint tenants, and see what she thinks.
As for using your head not your heart - yes you arent running a charity but a business. At the same time it makes good business sense to keep good tenants who have a change in circumstances but are responsible & active in trying to find a way to not get in arrears and keep paying the rent and stay, if you think they will be able to sort it.
good luck!
I’m surprised you haven’t asked your mortgage lender and insurance company already. Their response might make this a simple no for you.
I’d have thought mortgage lender probably just cares that rental valuation originally supplied in support of mortgage application still stands and that prospective tenants are checked for affordability. They make offers without any advance knowledge of who actual tenants. will be. They may prefer a joint tenancy arrangement
in that vein would help if Irene and any other prospective tenant can offer a guarantor who also passes referencing
Hi @Alex15,
I’m sorry for your loss. We have a Help Centre article on what to do if a tenant dies here. This will answer some of your questions in relation to what happens with the contract.
Further to that, we’d advise taking independent legal advice.
Many thanks for your reply and all your advice. I’ve contacted my lender and they basically said that as long as the mortgage is paid they’re not concerned, My insurer requested that I advise them of any tenant change. My tenant is not happy about the creation of.a new joint tenancy as she wants to remain in control as the sole ‘official’ tenant. If she doesn’t take in a lodger can the existing tenancy continue or must it now be in her name as the joint tenant (husband) has died ?
yeesh… you’re letting her stay on in a property she can’t afford on compassionate grounds. Sounds like she doesn’t appreciate what you’re doing for her or what the alternative could be.
Letting her have control over choosing a lodger would be fair as Im sure she would be super careful about who she takes in. She would take a deposit from them for any damages and warn her she would be totally responsible for paying for any damages. Im sure she will be very sensible in this instance and you would have nothing to worry about. She’s been a reliable tenant.