New Paragon 80% BTL products for individuals Ltd co and LLPs

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Paragon has refreshed its buy-to-let switch and further advance product range for portfolio and non-portfolio landlords, with a range of two- and five-year fixes available at 75% and 80% LTV for individuals, limited companies and limited liability partnerships.

Paragon’s portfolio range is designed for landlords with four or more mortgaged properties

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Citizens Advice response – Landlords and tenants need clearer standards

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The second Citizens Advice article can be viewed if you click here:

“Landlords and tenants need clearer standards
Why we’re calling for a national housing body for the private rented sector”

Below is a breakdown of what I believe to be errors and misinformation in the above-named report

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Shortage of brickies is the problem!

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The Children’s Commissioner for England reports that over 200,000 Children are Homeless and presumably one or both parents.

The only answer us to build more houses and quickly! However, Developers report an acute shortage of construction workers. The planning process has rapidly speeded up

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Crowd Justice appeal: Gas safety Certificate and Section 21

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Landlord Trecarrell House Limited is being supported by the RLA and has launched a Crowd Justice appeal: “Protecting Landlords Rights: Gas Safety and Section 21” Click Here

The Court of Appeal has now granted the landlord the right to appeal.

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Citizens Advice articles and my responses – the full articles

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The first Citizens Advice article can be viewed if you click here:

“3 things we know about how private landlords work
Key findings from the government’s first survey of landlords in 8 years”

There are some important discrepancies in the above-mentioned article

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Another reason not to accept tenants on benefits: a case study

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I was surprised to see that Shelter still hasn’t given up on its campaign to prevent private landlords from using the phrase ‘no DSS,’ and that it is continuing to spend its considerable financial resources on this. This is despite the overwhelming evidence in research by Openrent that 90% of tenants on benefits want to know if the landlord genuinely will accept them or not – so Shelter is doing the diametric opposite to what those it purports to advocate for would wish it to do.

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Eviction costs can seriously dent your rental income

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Letting Costs:

Research carried out by agents Benham and Reeves has
produced some worst case scenario costs of removing a really bad and determined
tenant, costs which are truly alarming.

These high figures would be a major concern at any time, but
with the government planning to remove the Section 21 accelerated possession
process they are doubly so.

Benham and Reeves think that on average, in this situation,
it can cost a landlord around £30,000 to remove a really troublesome tenant
when taking into account lost rent, the legal costs, and repairing damage to
the property, which is very common in these circumstances.

Of course, most landlords never experience a tenant dispute
that ends in eviction. Going the whole hog from a long notice period, court
action to obtain a possession order, and finally employing bailiffs to evict
can certainly rack up these sorts of costs, not to mention the stress that’s involved
– more than a few sleepless nights over a period of 9 months.

But landlords can reduce the risk of this scenario by making sure that new tenants are vetted thoroughly. Using professional letting agents who are members of one of the recognised professional associations or, if you do the letting yourself, using a good tenant checking service such as www.tenantveify.co.uk is highly advisable.

Also, having the right insurance cover.  Benham and Reeves claim that their research found
that 13% of landlords don’t have any landlord insurance cover, let alone any
rent guarantee and legal protection insurance. When the worst happens they have
no cover for accidental damage by tenants, loss of rent if the property becomes
uninhabitable or during an eviction, and no landlord’s contents cover. What’s
more they are leaving themselves open to horrendous claims if the tenants or
visitors should injure themselves and claim off the landlord.

Typically landlords will lose around nine months’ of rent payments
while pursuing an eviction, which with average rents will amount to around
£6,111. Add to that fixing up or replacing a damaged kitchen and bathroom,
commonly the most abused, can cost around £8,000, and £4,875, respectively. Redecorating
adds another £2,900, and new windows and or doors will add a further £7,000.
Legal fees typically come in at £3,000.  

Clearly this is a worst case scenario, but entirely feasible if the wrong tenants are taken on, and in some regions like London and the South East these costs can be even higher.

Director of agents Benham and Reeves, Marc von Grundherr, has
said:

“Rogue tenants are a landlord’s absolute worst nightmare,
and apart from the stress and time consumed dealing with them, the financial
impact can be crippling.

“We’re not talking about a bad apple that doesn’t pay rent
for the last two months of a tenancy and leaves a dirty protest on their way
out.

“We’re talking about serious criminal organisations that
know the letter of the law and every trick in the book to prevent you from
getting rid of them, including how to stall the court date for weeks on end and
how to deter the bailiff through threats of violence when they finally do call.

“At the very least, you’ll have a dangerously overcrowded
sub-let on your hands but more often than not it will be a brothel, workhouse
or drug farm.

“We’re not kidding when we talk about the complete
renovation and refurbishment of the property afterwards either, as they will
take every single thing they can and destroy whatever is left.

“It’s an extremely deep-rooted issue that goes beyond the
tenant, even as far as the bribery of the concierge, and so you really are fighting
from day one to get them out.�

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