Exchange and completion on the same day?

admin    Uncategorized     agents

Hi, We are approaching the end of the Stamp duty holiday up to 500K and I have a property that is legally ready to exchange.  However, we are having an issue on the approach to exchange and completion.

My challenge is that in case this moves to July

The post Exchange and completion on the same day? appeared first on Property118.

View Full Article: Exchange and completion on the same day?

Tenant claims advised to stay put?

admin    Uncategorized     agents

Hello, Can anyone advise the best course of action for me to take in this situation?

I received a message from a tenant in arrears, and we are currently taking her to court for eviction.

The message I received said:

“I’ve been in hospital on morphine.

The post Tenant claims advised to stay put? appeared first on Property118.

View Full Article: Tenant claims advised to stay put?

Manchester gives landlords more time to comment on huge new licensing scheme

admin    Uncategorized     agents

Landlords in Manchester have another chance to comment on plans for a bigger selective licensing scheme in the city after too few people responded to an earlier poll.

The plan – to cover more than 1,400 properties in Clayton and Openshaw, two areas of Gorton (pictured) and Abbey Hey and 430 homes in Harpurhey – was first suggested back in January but the council says lockdown and Covid regulations meant there wasn’t a chance to make an informed decision by the April deadline.

The new consultation will end on 29th August.

It has also flagged up another eight areas where it might consider schemes in future, including Claremont Rd/Great Western Street, Moss Side, and Royals, Longsight, which would cover another 1,031 properties.

The consultation process has been a real stop-start affair with different criteria suggested; last September the council announced plans for up to 12 parts of the city, with another eight more areas lined up.

But regardless of the areas covered, the National Residential Landlords Association has come out against selective licensing in the city as it believes the council should use its data to find landlords and target resources to best enforce current powers. 

Selective licensing is already operating in Crumpsall, Old Moat, Moston and Rusholme, where 1,681 properties are licensed. 

This has led to 403 homes targeted for follow-up inspections, 282 properties have seen improvement works carried out as a result, and 15 properties were given fines totalling £72,599. 

Greater Manchester’s mayor Andy Burnham has vowed to come down hard on rogue landlords with plans to introduce a £1.5m Good Landlord Charter in partnership with the city’s 10 councils to support landlord licensing and drive up standards in the private rented sector.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Manchester gives landlords more time to comment on huge new licensing scheme | LandlordZONE.

View Full Article: Manchester gives landlords more time to comment on huge new licensing scheme

Reasonably priced and efficient?

admin    Uncategorized     agents

Hello, Could anyone help please, I have recently taken advantage of the excellent tax planning structure offered by Property118.

I have started to remortgage some of my properties in the new structure, however, some of the conveyancing fees being charged seem on the high side.

The post Reasonably priced and efficient? appeared first on Property118.

View Full Article: Reasonably priced and efficient?

EVICTIONS: Changes to property possession process are needed, says legal expert

admin    Uncategorized     agents

Leading housing lawyer Simon Mullings is working with tenants’ groups on a five-point plan to make the evictions process fairer.

Mullings, co-chair of the Housing Law Practitioners Association (HLPA), says a worryingly low number of tenants facing eviction are not accessing free legal advice when their case is being reviewed by a judge under revised arrangements for possession proceedings.

Although the requirement for landlords to send the court an electronic copy of all the case documents – and confirm that these have been sent to the tenant – at least 14 days before the review is a positive innovation, Mullings suggests that duty advisers should be allowed to proactively contact tenants.

He told a conference organised by HLPA that one benefit of the mediation pilot being used in the process is that legal advice must first be given to a tenant.

Master of the Rolls

His announcement follows a recent Master of the Rolls report into possession hearings for evictions following the Covid court restrictions which warned of decreasing trust in the justice system without good availability of legal advice.

It said possession hearings were deemed unsuitable for remote determination by many, mainly because of the number of vulnerable tenants involved who were unlikely to be able to access the technology needed to take part, or to provide instructions to solicitors where they were represented.

Measures mandated by the pandemic had reduced the availability and accessibility of legal advice, with the impact of reduced advice disproportionately affecting those on low incomes.

It added: “Possession hearings, if conducted remotely, would threaten effective participation and undermine trust in the justice system.”

A working group is now looking into the ‘absurdly complicated’ process of evicting tenants and housing law in general.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EVICTIONS: Changes to property possession process are needed, says legal expert | LandlordZONE.

View Full Article: EVICTIONS: Changes to property possession process are needed, says legal expert

Bailiffs arrive at Last?

admin    Uncategorized     agents

Bailiffs arrive at Last! SO after serving notice for non-payment of rent on 1st November 2019 (Long before Covid-19 was even invented) and after a full year of waiting, a court date was finally set for 18 March 2021, at which the judge ruled for an eviction two weeks later on 1st April 2021 (AND that bailiffs could be called before the 30 June cut-off if necessary).

The post Bailiffs arrive at Last? appeared first on Property118.

View Full Article: Bailiffs arrive at Last?

TEST CASE: Is a landlord responsible for a rent-to-rent firm’s mistakes?

admin    Uncategorized     agents

This recent case involves a leasehold flat let to a management company that operated without the requisite HMO licence, says Tom Entwistle.

Rent-to-rent, the practice of letting a property to a management company that in turn rents to tenants is a practice that has become increasingly popular.

It takes all of the hassle out of owning rented property for the landlord, offers a guaranteed rent whether the property is occupied out not, and often the property must be returned in the same condition at the end of the arrangement.

That’s the theory, and in practice it works well providing the landlord owner lets to a responsible property management company or local authority.

Unfortunately, the arrangement is fraught with difficulties and arguments between the parties, even when the management company is reasonably responsible – the legalities of the situation can be complex.

Rakusen v Jepsen

In the case of Rakusen v Jepsen (Upper Tribunal) the owners of a leasehold flat moved out and rented it to a property management company. The company let the property to three tenants who occupied individual rooms.

But eventually this turned into four tenants occupying, which meant the letting became a house in multiple occupation (HMO), subject to licencing and all the additional regulations and safety measures that that implies.

When the property management company’s tenancy came to an end, the residents, realising the letting was in breach of the HMO licencing regulations, applied to the First Tier Property Tribunal for a rent repayment order (RRO), not against the property management company but against the landlord owner – the superior landlord.

Test case

This was a test case as to the application of Section 40 Housing and Planning Act 2016 regarding situations where Rent Repayment Orders can be applied to a range of offences and without the requirement of a conviction.

In his defence Mr Rakusen argued that the offence had been committed when the management company was in charge and therefore the award must be made against them.

Rakusen’s defence argued that on the correct construction of Chapter 4 of the Housing and Planning Act, a Rent Repayment Order can only be made against the immediate Landlord to whom the tenant had paid rent and could not be brought against a superior landlord. 

Rakusen’s defence relied on the wording under Section 40(2) which refers to “repay” saying that this could only apply to the landlord who had actually received the rental payments from the tenant.  He also argued that the reference to the “the Landlord” could only be the immediate landlord under the tenancy.

Permission to appeal

However, the tribunal awarded against Mr Rakusen, but granted permission to appeal. The Tribunal was guided by an earlier Upper Tribunal decision in Goldsborough & Anor v CA Property Management Ltd (2019) in which it was determined that an RRO could be made against a superior landlord despite there being no contractual connection between him and the tenants.

Mr Rakusen appealed his case to the Upper Tribunal (UT) but the appeal was dismissed. The UT restated that an order could be made against a superior landlord who has committed an offence (not holding an HMO licence) regardless of the lack of a contractual connection.  

The decision is an important one given the popularity of Rent-to-Rent arrangements where the immediate landlord, being a property company with no repairing obligations, is unlikely to be subject to the requirements of improvement notices or to prosecution for failing to licence.

Landlords should tread very carefully when letting to a management company and only reputable companies with a track record with these lettings should be considered. Tenancy legalities can be very complicated, so the services of a proficient solicitor should be used when drawing up agreements. Often management companies are poor targets for claims if they lack assets as they will simply go into liquidation if a claim is brought.

These tribunal decisions give a useful steer, but the case is now subject to an application to the Court of Appeal.

Read more: ‘My rent-to-rent horror story’.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – TEST CASE: Is a landlord responsible for a rent-to-rent firm’s mistakes? | LandlordZONE.

View Full Article: TEST CASE: Is a landlord responsible for a rent-to-rent firm’s mistakes?

LATEST: Lloyds Bank buys first rental properties as it rolls out PRS project

admin    Uncategorized     agents

Lloyds Banking Group is close to buying its first rental properties in a bid to go head-to-head with private landlords.

The UK’s largest mortgage lender has reportedly agreed to acquire a block of flats in Nene Wharf, Peterborough, and could start renting them out as soon as next month.

Lloyds is expected to manage the 50 residential units through a subsidiary called Citra Living.

It first announced plans to enter the sector in March, targeting new and existing housing stock across the UK as it searches for sources of revenue.

The plan – Project Generation – is set to bring in another source of income for Lloyds after it saw profits tumble by 72% to £1.2 billion last year as it battled the economic fallout of the pandemic.

Lloyds aims to take advantage of its low funding costs, strong brand name and knowledge of the housing market to become a major player in the sector, and believes it can offer better quality and more professional services to renters than many existing landlords. 

The move could pave the way for Lloyds to sell other products to prospective tenants, such as insurance or loans for deposits.

The lender has also directly invested in several housing projects with smaller developers in recent years through a partnership with Homes England.

Broadening access

Lloyds says: “As we stated in our full-year results in February, we are committed to broadening access to home ownership and exploring opportunities to increase our support to the UK rental sector.”

It’s not the first financial institution to get into property; Legal & General is a huge housebuilder, leaser and landlord of private rented property, while John Lewis announced plans earlier this year to build a residential property portfolio to offset weakness in its high street stores.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Lloyds Bank buys first rental properties as it rolls out PRS project | LandlordZONE.

View Full Article: LATEST: Lloyds Bank buys first rental properties as it rolls out PRS project

Splitting Rental Income for Tax Planning Purposes

admin    Uncategorized     agents

There are several ways to split rental income for tax planning purposes, the two most popular being a Declaration of Trust or one of many form of Partnership.

The concept is to transfer rental profits to a lower rate tax-payer.

The post Splitting Rental Income for Tax Planning Purposes appeared first on Property118.

View Full Article: Splitting Rental Income for Tax Planning Purposes

Activists launch campaign to reverse council’s selective licensing plans

admin    Uncategorized     agents

Tenants union Acorn is pushing for a selective licensing scheme in Brighton & Hove, three years after local landlord group iHowz managed to get the Housing Secretary to reject the city’s plans.

Its Landlord Licensing Now! campaign includes a tongue-in-check competition on social media to see whose rented property has the worst mould while it has also organised a rally in Brighton tomorrow (Saturday 19th June).

Activists say they are escalating efforts to collect evidence of poor housing after the city council reported that recent investigations in four wards – Queen’s Park, St. Peter’s and North Laine, Brunswick and Adelaide and Regency – revealed properties were, “overall found to be in a good condition”.

In 2018, iHowz successfully opposed the council’s plans which would have seen 27,000 rental properties covered by the scheme. Local landlords claimed it was unlawful, unnecessary and not justified by the evidence provided, and would almost certainly lead to rent increases for many private sector tenants in Brighton.

Landlord training

The council has promised to continue collecting evidence and working towards being able to apply for a licensing scheme. However, an iHowz spokesman tells LandlordZONE that together with the council, it implemented a landlord training and accreditation scheme which it believes already goes a long way to meet the charter called for by Acorn.

He adds: “Brighton & Hove, like most local authorities, have seen many budget cuts, but we wonder why Acorn have decided that landlords should be singled out to help top up the missing budget. It is an unfortunate fact that any council bringing in blanket licensing will have the unintended consequence that the cost of licencing will be reflected in rents.”

Acorn has been negotiating with the local authority for more than a year on the issue, and is also calling for an ethical landlords charter to be implemented. Branch secretary Ellen Musgrove (pictured) says its members often report serious issues with landlords that don’t get resolved.

She adds: “If the council can’t find the evidence they need they must be doing something wrong. We have tried to work with the Green administration to improve conditions for renters but the many delays make us question their commitment to standing up to bad landlords in this city.”

Councillor Martin Osborne, lead member for the private sector rented housing, says the desire is there but it is stymied by the thresholds the government has set. “While we do not yet have the evidence we need, we are continuing to collect evidence and work towards being able to apply for such a scheme,” he says.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Activists launch campaign to reverse council’s selective licensing plans | LandlordZONE.

View Full Article: Activists launch campaign to reverse council’s selective licensing plans