Aug
12

Sleuthing landlord exposes cannabis farm at property, tenant jailed

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A suspicious landlady who played detective has managed to rumble a cannabis farm at her rental property as growing of the drug in rental properties continues to boom.

After she heard someone in a pub say tenant Luke Nixon wasn’t living at the address, the landlady checked his Facebook profile and found there were no obvious pictures of him at the house in Franklin Road (pictured) in the Jacksdale area of Nottingham.

Whenever she drove past, the blinds were drawn and rubbish bins were always in the same position.

Nixon, of Market Place in Ilkeston, posted on Facebook that he was on holiday in Egypt, so she took the chance to inspect the property and found the lights were on and the front door lock had been changed.

A locksmith attended and she discovered cannabis growing inside; two bedroom doors had been removed and replaced with plastic sheets with zips while the loft had a purpose-built area acting as a nursery to plants.

Estimated yield

There were four plastic tubs of cannabis in the lounge with an estimated value of between £320 and £590. Police recovered 77 plants, with an estimated yield of between 2.1 kilos and 6.4 kilos, and a value of between £12,320 and £48,510.

Nottingham Crown Court jailed the 33-year-old for two years and three months after he admitted producing cannabis between September 2019 and February 2020.

The court heard that Nixon’s phone showed he was frequently going to a hydroponic shop in Giltbrook called Gro-zone. However, when he found out what had happened he told the landlady there was no reason to call police and that he could sort out the damage at the property.

He told the court he had been approached by a third party to establish a cannabis grow and to establish a tenancy where it would take place. He did not physically assist setting it up but received money from maintaining the grow.

Read more about cannabis farms.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Sleuthing landlord exposes cannabis farm at property, tenant jailed | LandlordZONE.

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Aug
12

DWP – overpayment of a deduction?

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Despite letting UC know (though the official form) that the tenant has now paid back in full her rent arrears, I have since been paid directly another deducted payment. I am assuming that at some point DWP will realise this and ask for it back as it classes as an overpayment

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Aug
12

Class G Vs Class MA Prior Approval What are the Differences in Permitted Development?

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Linda Wright gives an excellent explanation comparing and contrasting class G v class MA These 2 NEW prior approvals for converting use class E-commercial space to residential C3 uses. Did you know there are over a dozen differences between the two

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Aug
12

Stamp Duty – First Time Buyer – Company Buy to Let?

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Hi everyone, I have a question and would appreciate some help on this.

I have never owned a property before, and I am looking to purchase a Buy to Let property under a limited company.

When it comes to buying my own house

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Aug
11

Commercial property offers three times greater yield than residential, says research

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Commercial investments produce an average yield of 10.7% while residential properties offer just 3.7%, new research has claimed.

Scotland is home to the highest commercial yield at 20.4%, along with the South West (13.7%), while Scotland is also where investors can find the highest residential yields – along with the North West – at 4.4% and 4.3% respectively, according to agent Benham and Reeves.

But when it comes to the initial cost of investing, the average residential property needs a £259,850 budget, but with an average value of £454,384, a commercial investment needs a budget that’s 75% larger.

Benham and Reeves says that it is also easier to find residential stock as the market offers far greater choice, with 541,966 listings compared to just 12,022 across the commercial space.

London and the South East rank highest for residential stock availability, accounting for 19% of all listings, followed by the East of England (12%).

SW and NW

Those eyeing a commercial investment are better placed investing in the South West and North West where there’s greater stock at 12.9% and 12% respectively.

Benham and Reeves director Marc von Grundherr says both the residential and commercial markets have been impacted by the pandemic which means that it’s hard for investors to know where to put their money.

He believes the best approach is a balanced portfolio.

marc grundherr CGT

Von Grundherr (pictured) adds: “While a commercial investment may offer a higher yield, the recovery timeline as a result of the pandemic is set to stretch on far longer than that of the residential rental market and residential property investment remains by far the dominant force where availability, affordability and total sector value is concerned.

But commercial investment can provide a more hands-off approach for those doing so through a third-party platform, while the amateur buy-to-let landlord is sure to spend more time sorting out tenant issues.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Commercial property offers three times greater yield than residential, says research | LandlordZONE.

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Aug
11

EXPERT: Axing ‘No fault’ evictions could scupper rent-to-rent model

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Abolishing Section 21 ‘no fault’ evictions risks sounding the death knell for the current rent-to-rent model, a leading housing legal expert has claimed.

Anthony Gold solicitor Robin Stewart (pictured) believes that when residential tenancies in England become effectively indefinite in length, landlords are likely to be even more cautious about who they grant tenancies to.

Rent-to-rent businesses who grant assured shorthold tenancies won’t be able to claim they can guarantee things will go smoothly at the end of their tenancy and there will be no way to get the property vacant to return it to the landlord.

“This suggests to me that rent-to-rent will not survive as a popular business model in its current form after the abolition of Section 21 notices,” he says.

However, Stewart adds that it’s unlikely rent-to-rent will disappear completely.

Some businesses will use ‘licence agreements’ rather than tenancy contracts, on the basis that a licence can be terminated by ‘notice to quit’ whenever required.

“This can be legitimate if the contracts really are licence agreements but using sham licence agreements when the circumstances really amount to a tenancy is well recognised as a scam, and this can be prosecuted as a criminal offence under consumer protection legislation,” he says.

Other rent-to-rent businesses will not attempt to evict their tenants, and when the agreement ends and they hand the property, the landlord will become the direct landlord.

 “This might be a good thing – after all, why should tenants have to leave a property just because there is a change of management,” says Stewart

“If the landlord does not want to have to deal with the tenants they have ‘inherited’, they can appoint a managing agent. This arrangement might become the norm, but I suspect that it will prove to be unattractive to landlords.”

Read Robin Stewart’s comments in full on the London Property Licensing website.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXPERT: Axing ‘No fault’ evictions could scupper rent-to-rent model | LandlordZONE.

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Aug
11

Possession order granted for property guru’s flat after racking up £200k rent arrears

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Bankrupt property guru Glenn Armstrong faces having his home repossessed after racking up rent arrears of more than £209,000 while he promoted his training courses.

A possession order was granted against his wife Charlotte Geneva after Clerkenwell County Court (pictured) heard the lease on the property in Blackfriars Road, London, was taken out on 18th July 2019 but that no rent was paid from October 2019. The couple will have to leave by 24th August or face eviction.

Journalist Chris Mitchell reports that Geneva shouted at him in court and had to be asked to leave. Last month, Mitchell was exonerated of harassment and malicious communications allegations against the couple.

He says: “She called the police…who refused to take any action and sat in court to ensure she did not flare up again.

False claims

“The judge refused an application by her solicitor to have the hearing in private, as the police had advised the judge that previous false claims had been made against the journalist which had all been ‘no further action’ and that the stalking civil complaint was also dropped by the police when investigations were completed.”

Armstrong was declared bankrupt in February, owing £4.9 million to dozens of creditors.

armstrong glenn guru

He also has 10 unpaid county court judgements against his related companies dating back to 2017, totalling £566,987, as well as 10 unpaid personal county court judgements totalling £418,342.

Armstrong (pictured), who has appeared on Channel 4’s How the Other Half Live and The Secret Millionaire, has spent years selling courses and home study programmes for people wanting to make cash out of property.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Possession order granted for property guru’s flat after racking up £200k rent arrears | LandlordZONE.

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Aug
11

Lettingsupermarket celebrate 10th anniversary with Property118 exclusive deal

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Following the release of their new management system and landlord interface, our recommended letting agent Lettingsupermarket.com are offering property118 readers an exclusive deal to celebrate their 10th year in business.

Whether you are looking to let your property or transfer management immediately or in the next 12 months by signing up in the month of August you will receive 6 months management at a 50% discount when instructing Lettingsupermarket.com in the next 12 months. 

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Aug
10

Ministers considering move to bring back partial ‘green homes grant’

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Ministers are considering boosting the Clean Heat Grant due to launch next April to encourage house holds and landlords to replace gas boilers and resurrect – in part – the failed Green Homes Grant.

The Clean Heat Grant will offer £4,000 as a one-off payment to help with the upfront cost of replacing a boiler.

One option is to increase the grant to incentivise people to buy heat pumps – which currently cost about £10,000 – in the next couple of years, reports The Telegraph.

“It could become more generous,” a government source said, adding that the criteria for the payment could also be widened to allow larger, non-domestic buildings to qualify.

Both options could cost tens of millions of pounds, meaning they would need sign off from the Treasury, which has capped the scheme at £100 million.

Green Homes Grant?

Business Secretary Kwasi Kwarteng (main pic) is very keen that something equivalent to the scrapped Green Homes Grant is brought back to encourage owner occupiers to take the steps to decarbonise their houses.

A final decision will be made and published in the heat and buildings strategy next month.

The government hopes to fit 5.5 million heat pumps in UK homes by 2030 with the aim of phasing out all gas boilers by 2035, while landlords have been tasked with raising the energy efficiency rating of all their properties to at least band C by 2028.

Its PRS consultation document reports that about 67% of rented properties are rated at less than EPC C, posing a risk to tenant health and leading to higher bills; those rented homes with an EPC C rating are also worth about 5% more than those currently at EPC D.

However, building expert Roger Bisby recently warned that plans to ditch gas boilers for heat pumps was a, “car crash coming in slow motion”. Bisby tells viewers on his Skill Builder channel that after getting a £4,000 government grant for a heat pump, you’d have to spend £16,000 to make it work.

furlough

Ben Beadle, Chief Executive of the National Residential Landlords Association, says: “We all want to see energy efficient rental homes. They cut bills for tenants, make homes more attractive to potential renters and help the country to achieve its net zero commitment.

“The Chancellor needs to develop a financial support package that works for landlords and tenants. This should especially be targeted at the hardest to treat properties where the cost of work will be prohibitive for landlords. In this way, he will also be doing the most to help the fuel poor.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Ministers considering move to bring back partial ‘green homes grant’ | LandlordZONE.

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Aug
10

Landlord wins battle with council over ‘unfair’ selective licensing fine

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Common sense has broken out temporarily in the court system after a landlord successfully overturned a £2,500 fine for unknowingly letting her flat without a licence while she lived abroad.

Irene Ekweozoh began renting out the flat in Axon Place, Ilford (pictured) in 2007 when she moved to Canada but didn’t give Redbridge Council her new address, which means she did not know its new selective licensing scheme had been introduced in July 2017.

She only discovered the change in November 2018 and immediately sent in an application. However, in May 2019 she was fined for the six-month period the property had been rented without a licence.

Ekweozoh appealed against the decision which has now been overturned.

Fine scrapped

Judge Martin Rodger ruled that the fine should be scrapped, arguing that the landlord had committed an offence of “moderate seriousness” and should only be given a warning.

He added: “The basic facts of this case are that a landlord with a single property…was unaware of the need for a licence, having been absent from the country for ten years.

The appellant’s non-compliance with the licensing requirement did not therefore cause a significant risk (or any risk) to the occupants or to the public as a whole.

“This seems to me to be a case in which the appropriate disposal, in accordance with the respondent’s policy, is to deal with the matter informally.”

A Redbridge Council spokesman said it was disappointed with the outcome but accepted the judge’s findings. He added: “The scheme helps the council to protect the health and safety of private renters and improve the quality of privately rented homes in the borough.”

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