RLA call for credit referencing agencies to include rental payments

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The Residential Landlords Association (RLA) have today called for  credit referencing agencies, such as Experian and Equifax, to include rental payment history when calculating the credit rating of tenants.

This would seem only fair when the penalty for landlords and home owners for even one month of missed mortgage payment can be so severe when applying for a new loan or mortgage.

However, the practicalities of this are very difficult, because a tenancy agreement is not considered a consumer loan meaning there is currently no authority to collect this information, who would collect it and how can you be sure it is accurate.

The RLA conducted a survey of 3000 Landlords showing 61% would be in favour of rental payments being included in a credit score. This would obviously assist landlords for any reference assessment in taking on a new tenant.

Therefore the RLA is writing to the government requesting cooperation with the industry to consider how rental payment history could be included when calculating credit scores.

Alan Ward, RLA’s Chairman, said: “With many tenants wanting to buy a house of their own, it is absurd rent payment is not routinely included when undertaking credit checks for mortgage applications.

“Moving to such a scheme would help not just tenants, but also landlords by giving them a clearer sense of whether a prospective tenant has historically paid their rent in full and on time.”

Experian themselves have recently suggested a similar idea so watch this space although, government appetite for anything that may help landlords or in anyway disadvantage renters from getting on the property ladder will be low while chasing popular opinion in a hung Parliament.

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Buying freehold for our 2 bed semi

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I’m looking to purchase the freehold from Simarc for our 2 bed semi house once we’ve lived here for two years. We pay £40 per year ground rent.

By the time we look to purchase, there will be c960 years left on the lease.

Has anyone any experience in buying the freehold from a leaseholder? Do they all calculate costs in a similar way? What sort of fee should I be prepared for?

Finally, is there anyway around the £96+VAT admin fee JUST to get a quote from them? This seems excessive!

Many thanks

Kevin

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Hampshire Landlord Jailed for Tax Fraud

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A landlord from Church Crookham, Richard Fuller, 53, has been jailed for more than two years after he failed to declare capital gains on the sale of properties in the Aldershot area.

Fuller, of Bowenhurst Road, avoided paying £157,725 in Capital Gains Tax by failing to declare capital gains from the sale of his rental properties. He was given a prison sentence of two years and three months.

Fuller was arrested at Gatwick Airport in October 2014 after returning from holiday in Turkey. This followed an investigation by HM Revenue and Customs (HMRC) which revealed that between 2006 and 2013, he did not declare capital gains made from selling properties in the Aldershot area.

In court Fuller was found guilty of two counts of cheating the public revenue and three counts of fraud by false representation on July 14 (2017), and was jailed at Winchester Crown Court on Friday (August 11).

Sentencing Fuller, Judge Andrew Barnett said:

“The jury found you guilty of dishonesty. This is a serious matter, you deliberately failed to pay your capital gains tax over several years.”

The evasion was uncovered as part of HMRC’s crackdown on property tax evasion, the property taskforce campaign, and was subsequently referred for criminal investigation. Following the sentencing, confiscation will be sought to recover the proceeds of Fuller’s crimes.

Assistant director of the Fraud Investigation Service at HMRC, Richard Wilkinson, had said:

“Fuller thought he was above the law and decided not to declare or pay the tax due from the sale of some of his property portfolio.

“It is simply not acceptable to steal from UK taxpayers.

“HMRC will continue to pursue those who attempt to hide their gains on assets, their income, and investigate those who attack the tax system.”

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