Can I purchase a freehold title AFTER freehold enfranchisement has taken place?

admin    Uncategorized     agents

There may be the potential to do a rooftop development or extension on the top of my building.

Freehold enfranchisement took place a few years ago and 18 lessees (of which I am one) are now all members of the freehold.

The post Can I purchase a freehold title AFTER freehold enfranchisement has taken place? appeared first on Property118.

View Full Article: Can I purchase a freehold title AFTER freehold enfranchisement has taken place?

New Code of Conduct brings in Right to Rent rule changes from 2nd November

admin    Uncategorized     agents

The Immigration (Residential Accommodation) (Prescribed Requirements and Codes of Practice) (Amendment) Order 2020 introduces an online service which should make it easier for letting agents and landlords to check potential tenants for residency status.

Under the new rules, which involve relatively minor changes in management practice, new entrants to the UK will have an online page which includes their photograph and details of their right to work and rent. Landlords and agents will then need to verify that the photograph on the web page is of the correct person and also keep a copy of that web page for 12 months after the end of the tenancy.

The government says that,

“Chapter 1 of Part 3 of the Immigration Act 2014 (“the Act”) provides a statutory excuse for landlords and their agents from being required to pay a civil penalty if they conduct prescribed eligibility checks on prospective occupiers and those occupiers who are renewing their tenancy agreements.”

“Allowing those without a lawful right to be in the UK to rent property supports people to establish a settled life in the UK, rather than to make provision to return to their home country. This creates a significant cost to the public purse, including through the provision of local authority support, and also reduces the amount of housing stock available to those who are lawfully residing in the UK… The legislation underpinning the Scheme extends across the whole of the UK. However, the legislation currently only applies in England.”

This is the third version of the Code of Practice on right to rent: a civil penalty scheme for landlords and their agents (September 2020). It applies from 2 November 2020.

Landlord and agents should make themselves familiar with this new version of the code which must be applied to all right to rent checks from that date, including where a follow-up check is required to maintain a statutory excuse which was established using a previous version of the code, current at that time.

B5JSSK nationals (those from Australia, Canada, Japan, New Zealand, Singapore, South Korea and the USA) holding a passport, who also have a paper or electronic document (such as a boarding pass) showing entry into the UK within the last six months, have a right to rent. They can also get an approval via the Landlord Checking Service. This will, as normal, give them a 12 month right to rent even though they only get a six-month visa as of right.

From the outset, Right to Rent has received criticism from the landlord community, it’s an added task they don’t see as their responsibility, to be policing the borders, but when all things are considered, who else could do it?

These changes are relatively minor and should make the landlord’s or agent’s task easier. There are likely to be more substantial changes next year as the UK moves towards the proposed “points based immigration system”.

It is then likely that EEA and Swiss nationals will be downgraded to being of similar immigration status to other countries for which the UK normally allows time-limited visa free access (as opposed to unlimited visa free access) with the option to extend in certain circumstances.

Here is a Summary of changes in the new issue of the code of practice:

The new code of practice was updated for the 2 November 2020 and updates the version of the code issued in May 2016. The updates relate to:

• the introduction of online right to rent checks
• the use of the combination of a passport, plus proof of arrival within the last six months (for example a physical or electronic plane/boat/train ticket or boarding pass) for visitor nationals from USA, Canada, Australia, New Zealand, Japan, South Korea and Singapore to demonstrate a right to rent
• an amendment to the lists of acceptable documents set out in the Schedule to include Home Office documents issued to third-country family members of EEA nationals, which show the length of leave granted to such persons (both time limited and indefinite)
• an amendment to the lists of acceptable documents set out in the Schedule to remove the requirement that a UK birth or adoption certificate must be the full (long) certificate. A short or a long birth or adoption certificate issued in the UK, Channel Islands, the Isle of Man or Ireland are now acceptable documents to demonstrate a right to rent
• further minor amendments and technical changes to the presentation of the lists of acceptable documents set out in the Schedule making it simpler for landlords to conduct the initial and follow-up checks

Agents and landlords should review the new code and keep their eyes on the changing picture for the Right to Rent. There remains a lighter-touch regime in place for Right to Rent during the Covid pandemic as well which agents and landlords should be aware of.

Immigration (Residential Accommodation) (Prescribed Requirements and Codes of Practice) (Amendment) Order 2020

Landlords: immigration right to rent checks

LandlordZONE – Government lays new Right to Rent legislation before parliament

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – New Code of Conduct brings in Right to Rent rule changes from 2nd November | LandlordZONE.

View Full Article: New Code of Conduct brings in Right to Rent rule changes from 2nd November

Giving Tenants Notice versus Eviction during Covid-19 restrictions?

admin    Uncategorized     agents

So what is the difference with a rolling shorthold tenancy with a two month notice period, versus seeking an eviction notice?

Do I still have to give my tenant six months notice when I wish to end their periodic tenancy with a two month notice clause?

The post Giving Tenants Notice versus Eviction during Covid-19 restrictions? appeared first on Property118.

View Full Article: Giving Tenants Notice versus Eviction during Covid-19 restrictions?

Government’s approach is almost certainly unlawful

admin    Uncategorized     agents

Evidence is emerging that County Court Bailiffs and High Court Sheriffs (HCEOs) are declining to enforce warrants and writs of possession.

Guidance has apparently come from the Lord Chancellor to Bailiffs, and the High Court Enforcement Officers Association has also publicised a letter received from Robert Buckland

The post Government’s approach is almost certainly unlawful appeared first on Property118.

View Full Article: Government’s approach is almost certainly unlawful

Warwick University refuses to answer key questions after leaving 500 private landlords in the lurch

admin    Uncategorized     agents

Hundreds of landlords face trying to find new tenants for their student HMOs after the University of Warwick ditched its property management scheme.

But despite LandlordZONE trying to contact its representatives for two days, no-one at the University of Warwick was available for comment.

Under its Head Lease Scheme, landlords signed-over their houses to the university for years at a time for guaranteed rent, which then did the marketing, management and maintenance via its own letting operation.

More than 500 Coventry and Warwickshire landlords have now been told they’re on their own this term, which means that more than 3,000 HMO rooms will be coming onto the non-student rental market.

Purpose-build blocks

While Covid-19 would have been a factor in its decision, the university has also been working with Coventry City Council and developers in recent years to build thousands of extra student rooms in purpose-built blocks.

However, according to Patrick Sullivan, CEO of Red Brick Lettings in Coventry, this new approach means that many of these landlords may have not stayed on top of current legislation and regulations, particularly HMO licensing.

He tells LandlordZONE: “At least ten landlords have come to us in the last week looking for help, one of whom didn’t have an HMO licence.

Coventry City Council’s additional licensing scheme changed in the summer so that HMOs with three people now need a licence – when it was five people the university sorted the licence for them.”

He adds that there are now thousands of high spec and en-suite purpose-built new rooms available in the city that will be competing for students. Although the university has promised to set up an advertising platform, some of these landlords will now be feeling lost, Sullivan says.

“As they’ve been used to getting less rent, if they start renting the properties out themselves, they could use the extra money to make some improvements,” he advises.

ADVICE: How to rent to student tenants.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Warwick University refuses to answer key questions after leaving 500 private landlords in the lurch | LandlordZONE.

View Full Article: Warwick University refuses to answer key questions after leaving 500 private landlords in the lurch

Panicky tenants drive demand for ‘joint and several’ rent arrears protection

admin    Uncategorized     agents

Renters feeling more anxious about their financial obligations during the pandemic have pushed up demand for rent arrears protection.

Part of the Housing Hand rent guarantor group, Only My Share reports that demand for its joint and several liability cover increased by 82% between March and September compared to the same time period last year.

It provides rent arrears protection to tenants who rent rooms individually to prevent them from being liable if a housemate defaults on their rent.

With uncertainty around job security and university placements, renters are more cautious while parents don’t want to be potentially liable for thousands of pounds of somebody else’s rent, according to the platform.

And while it primarily serves university students living in HMOs, 44% of its users are in the 25- 44 age bracket, as more Generation Renters have signed up too.

Group MD Jeremy Robinson (left) says that as understanding of rent arrears protection grows, it’s predicting a continuing increase in demand. “The economic impact of the Covid-19 pandemic hasn’t yet been fully felt,” he says.

“It’s encouraging that so many more people are protecting themselves from becoming liable for other tenants’ rent arrears before it is.”

Only My Share also provides a bespoke service for landlords and agents looking to guarantee rent, receive contents cover and get help with rent recovery, and is set to launch a new B2B service for them online.

Read more: Everything landlords need to know about Coronavirus.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Panicky tenants drive demand for ‘joint and several’ rent arrears protection | LandlordZONE.

View Full Article: Panicky tenants drive demand for ‘joint and several’ rent arrears protection

Do I have to accept a Smart Meter?

admin    Uncategorized     agents

My new tenant wants to have a smart meter installed. I’m not so sure as they have been problematic and not always able to give accurate readings plus some suppliers don’t like taking on new customers with these.

I would therefore prefer her not to.

The post Do I have to accept a Smart Meter? appeared first on Property118.

View Full Article: Do I have to accept a Smart Meter?

Watch: How to prevent tenants complaining about damp, mould and condensation

admin    Uncategorized     agents

Damp is a common issue, particularly over the winter months. Everyday activities like showering or drying clothes create moist air. When that air has nowhere to go, it can seep into the walls, leading to unsightly marks and mould – and tenant complaints.

But what are the differences between damp, mould and condensation? And how can you identify the cause early and avoid further problems developing in your property?

To help you understand how to prevent the development of damp, mould and condensation, our landlord insurance partner, Hamilton Fraser Total Landlord Insurance has put together a short video.

Visit Hamilton Fraser Total Landlord Insurance’s expert guide to learn more about how you can identify and treat damp, mould and condensation before it damages your property and becomes an unwanted expense.

Hamilton Fraser Total Landlord Insurance has also put together a helpful advice sheet to assist your tenants in identifying and managing the effects of damp, mould and condensation.

For further guidance on getting your property ready for the winter months visit Get winter ready – everything you need to protect your property.

Watch: Top 3 actions you can take to protect your rental property

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Watch: How to prevent tenants complaining about damp, mould and condensation | LandlordZONE.

View Full Article: Watch: How to prevent tenants complaining about damp, mould and condensation

Pandemic flat sharing boom under way as locked-down tenants seek companionship and lower bills

admin    Uncategorized     agents

Tenants looking to avoid isolation and save money during the pandemic are turning to flat shares instead of renting their own homes.

Online rental platform Spotahome says the trend is particularly pronounced in London as the capital’s renters look to reduce their monthly outgoings and improve their personal wellbeing by avoiding months on end living alone. 

As a potential second national lockdown looms, its new research finds that the average rent for a one-bedroom property in London is £1,307, while renting a three-bed flat-share costs £2,013, working out at just £671 per person and a 49% reduction in rent.

It found eight London boroughs where opting for a three-bedroom rental property can cut the monthly rental outgoings by at least 50%, with the biggest reduction in Hillingdon where the cost of £464 per person for a three-bedroom property is 55% lower than the cost of renting a one-bed (£1,027).

Predictably, Kensington and Chelsea offers the smallest reduction, although renters can still make a 20% saving compared to spending £2,062 renting alone in the borough.

UK and Ireland country manager, Nadia Butt (left), says that while many renters have found themselves on furlough or out of work – making the decision to flat-share financially motivated – there’s also a strong demand from those who would have traditionally rented a space of their own.

“Sharing a rental property with others not only helps your bank balance but it can bring a huge benefit to your personal and mental wellbeing,” she says.

“While it will no doubt present its own issues that may not arise living on your own, we’re seeing more and more tenants opt for a shared living space due to the pros outweighing the cons.”

Visit Spotahome.com
More: Difference between bedsit and an HMO.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Pandemic flat sharing boom under way as locked-down tenants seek companionship and lower bills | LandlordZONE.

View Full Article: Pandemic flat sharing boom under way as locked-down tenants seek companionship and lower bills

Rent to Rent furniture sale taxable?

admin    Uncategorized     agents

Hi everyone, I’ve had a Rent to Rent HMO in Liverpool since March 2013. I’m now passing it on to someone else, furnished, and tenanted, as I’ve had enough myself, but it is a good house.

When I first got the house

The post Rent to Rent furniture sale taxable? appeared first on Property118.

View Full Article: Rent to Rent furniture sale taxable?