Ladybird Living – Your London Estate Agent
What happens after you receive a property offer letter?
Once you have found the perfect home and received an offer letter, there are a few things you must do:
- Proof of identity: You will need to provide proof of identity which can include your passport, national identity card or a letter of attestation and driver’s license with a birth certificate. For non-British citizens, they can share a code to prove your immigration status and then the property owner will conduct the identity check online.
2. Proof of income or employment: It is a requirement for you to earn 2.5 x your annual rent to pass referencing or you may be asked to provide a guarantor.
- Those who are employed will have to provide 3 months’ worth of payslips or written confirmation of employment from their employer. Those who receive weekly payments would need to provide 2 payslips from each month.
- Self-employed individuals can provide an accountant referee if they have a professional email address. If you are self-employed without an accountant, your latest tax return – SA100, SA302 and SA800 will be reviewed.
- If you have independent funds, they must be instant access, liquid, guaranteed, and in your personal account.
- If you are receiving pensions or benefits, open banking can be used to verify pensions and benefits. If you choose not to use open banking, you can provide 3 months of most recent bank statements showing income from pensions/benefits, a pension P60 An annual pension statement 3 months’ worth of pension payslips. You can also provide a letter from your pension provider confirming your annual pension payments.
3. Providing a referee: If you are having trouble using open banking or decide not to use it, you can provide a referee from your employers. The referee must have a professional email address.
4. Previous landlord’s reference: your previous landlord can comment on your previous tenancy. You should inform them in advance that they will be contacted so that they can keep an eye out for any emails/letters they receive.
5. Permission for a credit check: You need to give your written permission for your credit history to be checked.
6. Guarantor: you can choose someone to be your guarantor who can pay your rent and cover damages if you are unable to do so in the future. Your guarantor will have to go through a similar referencing process and credit check. They will need a salary of 3 x the rent to pass referencing and should be living in the UK.
You then pay a holding deposit to secure the property and you can choose for it to go towards your security deposit (maximum of 5 weeks rent, or 6 weeks’, if your annual rent is more than £50,000), which will be held in a secure deposit protection scheme by your agent or landlord. You may also need to pay at least a month’s rent in advance, so you will always be paying rent for the month ahead.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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