Updating RICS guidence for lenders to assist borrowers affected by Cladding issues

admin    Uncategorized     agents

In a joint statement with UK Finance and the Building Societies Association (BSA), RICS has issued new guidance to lenders to clarify the current lending position for properties with fire safety issues in blocks of flats over 11 meters. Click here

The statement indicates Providing the mortgage application meets all the lender’s other policy and regulatory requirements

View Full Article: Updating RICS guidence for lenders to assist borrowers affected by Cladding issues

Commercial rent – what to charge?

admin    Uncategorized     agents

Hi, I’m stumped! I have looked at various websites and all give weird and wonderful formulae that are confusing contradictory and I am going around in circles.

All I want to know is how to assess what the current market rental rate is for shops on a particular high street

I know it is based on the exact location and the amount of floor space available in the property but all I really need is a ballpark figure.

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Can I buy the freehold to my flats?

admin    Uncategorized     agents

Hi, I own 8 flats in a block which is all of the flats in the block.

I have been told I can buy the freehold because I own more than 50% of the individual flats.

However

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Solicitors failing to pass on Service Charges?

admin    Uncategorized     agents

I purchase my property nearly a year ago now and my solicitor’s company is refusing to pass on the Service Charges which I had paid to them for the management company as part of the completion.

The sale required an indemnity policy (as the vendor had laid wooden floors in the property which breached the lease)

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Huge landlord fine halved after agent blames Covid for management mistakes

admin    Uncategorized     agents

A landlord father and son who neglected to licence an HMO have had a £24,000 fine reduced by half after their managing agent took the blame.

Jason Raja Sivam and Ponniah Sivam were taken to court by four tenants who lived in the house in Kingsleigh Close (pictured), Brentford, between July 2018 and July 2021.

Their HMO needed a licence from August 2020 when the London borough of Hounslow introduced its additional licensing scheme.

Under rent repayment order (RRO) rules, managing agent Sutherland Estates cannot be held liable, but the firm readily accepted it had failed in its responsibility to ensure the property was licensed, admitting it was unaware of the scheme.

Furloughed

Shehnaz Khan, from Sutherland Estates, told a First Tier Property Tribunal that when the first Covid-19 lockdown was imposed, staff were furloughed and its priorities were to ensure urgent repairs were arranged and that tenants were able to pay their rents.

The family business in West Ealing also helped tenants apply for universal credit.

The judge said the two landlords had played no part in the proceedings, which did not commend them to the tribunal.

“They have apparently adopted the attitude that they had appointed the firm to manage the property and that the current application had nothing to do with them,” he said.

“There has been no acceptance on their behalf of their responsibility to ensure that their property is licenced. Ignorance of the law is no excuse.”

However, despite this, because they had arranged for Sutherland Estates to manage the property, the judge decided to make a substantial reduction in the RRO, which meant they were only fined £12,342, along with £300 costs.

Read the decision in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Huge landlord fine halved after agent blames Covid for management mistakes | LandlordZONE.

View Full Article: Huge landlord fine halved after agent blames Covid for management mistakes

Have tenants or their pets damaged your property? Tell Ministers about it here

admin    Uncategorized     agents

A campaign has been launched to find out the true cost of damage caused to rental properties by tenants including their pets and children.

Organised by AdvoCATS founder Jennifer Berezai but supported jointly by LandlordZONE, the National Residential Landlords Association and Propertymark, the campaign is asking buy-to-let investors and letting agents across the UK to complete a short survey to help inform policy-making in Whitehall.

Bereza (pictured)i, who has been lobbying key players within the PRS says she has been told ministers are aware of her organisation’s effort to provide a true picture of damage caused to properties during tenancies across the UK.

The purpose of the research is to provide accurate data of the type of damage caused in rental accommodation by adults, children and pets, as well as the cost to landlords and method of recovery. 

The results will be presented to Eddie Hughes, the Minister for Rough Sleeping & Housing, at the Department for Levelling Up Housing & Communities by AdvoCATS later this Spring, to further enhance their Heads for Tails’ report and proposals to amend the Tenant Fees Act 2019 and making renting with pets easier for both parties, thus avoiding the devastating impact of “no pets” clauses.

Berezai says: “We know that fear and cost of pet damage is one of the main barriers to landlords accepting pets, and this survey will give a better understanding of the reality of those fears, and how they compare to other causes and costs of damage.

“These questions haven’t been asked before, and the answers will give us a unique insight into landlords’ experiences.”

Chris Norris, Policy Director for the NRLA, adds: “We understand the importance that pets have for many renters, especially those wanting companionship.

“However, the system at present does not allow the true heightened risk of pets to be reflected in deposits.
“We encourage landlords to complete this survey as we work to ensure there is sufficient confidence to rent to tenants with pets.”

Take the survey, which is just 12 questions, here.

Timothy Douglas, Head of Policy and Campaigns at Propertymark says: “Many renters are pet owners, but due to the Tenants Fees Act which caps security deposits, letting agents and their landlords are no longer able to fully mitigate the additional risks associated when letting their property to tenants with pets.

“We hope that the responses collected from this survey will strengthen our calls for changes to current rules and that the UK Government will explore options that incentivise landlords to rent to more people with pets.”

AdvoCATS was set up in 2018 to offer a free support and advice service to both landlords and tenants, and assist pet owners who experience difficulty finding rental accommodation. Its approach is also endorsed by 35 organisations including most recently, the Pet Food Manufacturers Association, Proptech-PR and ProtectaPet.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Have tenants or their pets damaged your property? Tell Ministers about it here | LandlordZONE.

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HMO landlords warned not to over-charge ‘all inclusive’ tenants as energy bills soar

admin    Uncategorized     agents

Following energy regulated Ofgem’s decision to raise the price cap by nearly £700 a year per household, HMO landlords have been warned to observe the ‘maximum resale value’ and not offset their higher energy bills by charging their tenants extra.

Student house shares, professional HMOs and dedicated build-to-rent properties that form part of a larger development often offer all-inclusive tenancies.

The warning came after Labour MP Steve McCabe asked the government to clarify whether it had assessed the potential capacity of a landlord or letting agent to increase a tenant’s utility bill mid-way through an assured shorthold tenancy contract.

Housing Minister Eddie Hughes replied that where the landlord was responsible for paying the energy supplier and billed the tenant separately to rent, they could only charge for the ‘maximum resale price’ which includes the energy the tenant has used, the tenant’s share of the standing charge, and the VAT owed.

Landlords and agents who offer ‘all inclusive’ rent deals are deemed to energy resellers and are governed by Ofgem rules.

Its guidance states that if the reseller (landlord) underestimates the cost of energy supplied, “he is obviously entitled to recover the amount undercharged from the customer”.

Civil proceedings

But it warns that anyone who charges more than the maximum resale price may face civil proceedings for the recovery of the amount overcharged and might also have to pay interest.

Some HMO landlords are doubtless considering increasing rent to recoup the added expense.

Read more: The complete guide to running an HMO property.

While HMOs have traditionally generated higher returns than standard properties (between July and September last year, individual flats achieved average yields of 5.9%, according to consultancy BVA BDRC, while HMO yields were a fifth higher, at 7.2%) rising interest rates have now started to erode margins.

Many HMO landlords have already received higher energy bills because of the move towards working from home, which has driven up home energy use.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – HMO landlords warned not to over-charge ‘all inclusive’ tenants as energy bills soar | LandlordZONE.

View Full Article: HMO landlords warned not to over-charge ‘all inclusive’ tenants as energy bills soar