Retrospective registration?

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If you grant a tenancy for +7 years it has to be registered at HM Land Registry.

What will happen, under the new White Paper if it becomes law if tenants stay +7 years?

Does the tenancy then have to be retrospectively registered?

View Full Article: Retrospective registration?

Zero to Hero: The new breed of landlord who’s also an agent, blogger and investor

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“I won’t win every landlord so I might as well teach them how to do things properly,” explains Portsmouth-based investor and entrepreneur Tom Soane (main picture), who runs landlord workshops as well as the popular Anonymous Landlord podcast as a way to share his and others’ experience.

Soane, who runs a fast-expanding portfolio of properties, insists the information and advice is all free and promises to answer every email and help wherever he can.

“I’d love to offer a landlord support service one day,” he tells LandlordZONE, “where they could get a quick answer to everything.”

Empire

In the meantime, he’s busy growing his business empire in Hampshire. Soane started his career as a letting agent, then became a mortgage advisor before starting up his own agency – local online platform Pink Street – in 2012.

After getting some mentoring, he figured that scaling up was the way to go and first bought the Whites agency in Fareham followed by four more acquisitions in quick succession: Taylor Garnier in Wickham, Tenant Finders in Southsea, YesCanDo in Havant, and Principal Properties in Waterlooville.

Soane is still growing his own portfolio of properties around the country – mainly buy-to-let houses for a fast exit if needed – using the capital to re-invest.

4,000 properties

He’s also on the lookout for more agencies around Hampshire and aims to eventually reach his target of having 4,000 managed properties, up from the current 1,000, to become the biggest independent letting agency in the county.

Lettings make up 80% of his companies’ business and Soane explains that he’s taken learnings from each firm to hone his model.

“The difference between mine and other companies is the people I employ and having robust processes for everything,” he says.

He predicts that in the future, the PRS will witness larger property owners creating agencies for their own portfolio, and his next project builds on that: a portfolio management firm for those landlords currently using multiple agencies for their properties around the country, giving them a single point of contact – opening the door for him to buy agencies in other areas. “I love to keep busy,” he laughs. “It’s also a way of leaving a legacy.”

Read more ‘Zero to Hero’ stories.

View Full Article: Zero to Hero: The new breed of landlord who’s also an agent, blogger and investor

Landlord wins battle with council over ‘typing error’ that stopped him selling property

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Benefits landlord Mick Roberts (pictured) is fuming that he’s spent hours chasing up his local council after it mistakenly billed his daughter for rubbish clearance but refused to speak to him when he tried to clear up the admin mess.

Nottingham Council sent him a bill addressed to his daughter back in 2016, without any explanation about what it was for.

When he called to explain the error, officials told him they could only talk to the person named on the bill – so he didn’t pay it.

And when he recently came to sell the house, Mick’s solicitor alerted him to a £417 charge which he then connected to the incorrect historic bill.

“Their legal department said they wouldn’t talk to me as I had a solicitor dealing with the complaint when in fact my solicitor was just doing conveyancing work,” an exasperated Mick tells LandlordZONE.

“It’s so frustrating that they won’t just pick up the phone, as it could all be sorted out so much more quickly.”

Typing error

The council has acknowledged the “unfortunate typing error” and explains that the charge related to the removal of rubbish in 2015, which it has now refunded. It told him that this now won’t appear on a search.

A spokesman says professional conduct rules prevent, “communication with a person in relation to a subject in which that person is represented by another solicitor, without permission from that other solicitor”.

She adds that the complaints team doesn’t have access to the individual council departments’ files, information or knowledge, but that they work out who can deal with the complaint before passing on a response, so that citizens don’t have to contact multiple departments.

Mick isn’t satisfied and plans to take his complaint to the Local Government Ombudsman but doesn’t hold out much hope that it will take any action.

“This absurd Nottingham Council complaints process is meant to wear us down and give up trying,” he adds.

Read more about Mick Roberts.

View Full Article: Landlord wins battle with council over ‘typing error’ that stopped him selling property

LATEST: 18% of rented homes will need £10,000 spent on them to achieve EPC band C

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Nearly one-fifth of private rented homes would need work costing more than £10,000 to bring them up to an EPC Band C, according to the latest PRS figures.

The English Housing Survey Private Rented Sector report for 2020-21 found that these were more likely to need larger sums of money spent on them to reach a C than those of social renters but less likely to require the greatest spend of £15,000 or more compared with owner-occupiers.

Energy efficiency improvement costs were estimated at between £5,000 and £9,999 (45% of PRS homes), while almost a third (31%) could be improved for under £5,000.

At the other end of the scale, 18% of homes would cost more than £10,000 to improve to at least a Band C, and a further 6% of homes would require £15,000 or more.

2025

The government is currently considering proposals that would mean all new tenancies started after the end of December 2025 would need a minimum EPC rating of C while all existing tenancies would need this from December 2028.

In 2020, most private renters lived in properties with a Band D (45%) and C (39%) while 10% lived in homes with a Band E, and 4% were in the lowest rated homes with Band F or G.

Read more about energy efficiency laws.

Private renters generally lived in poorer performing dwellings compared with social renters; 63% of social renters’ homes had a Band C and only 1% lived in houses with a Band F or G. Private renters in London (50%) were more likely to live in a property with a C rating compared with the rest of England (36%).

The report puts the poorer energy performance of the private rented sector down to the fact it has a higher proportion of the oldest (built before 1919) and generally less well-insulated housing stock than the social sector.

Read the report in full.

Read more about EPCs

View Full Article: LATEST: 18% of rented homes will need £10,000 spent on them to achieve EPC band C

This feels like it should be criminal?

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For the last month, the freeholder of my property has blatantly refused to supply my conveyancing solicitor (and I) with a copy of the Building Insurance Certificate & Policy to which I am legally entitled ‘free of charge’.

Despite daily requests since the beginning of June from solicitors

View Full Article: This feels like it should be criminal?

Halifax House Price index inflation continues with supply imbalance

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The Halifax House Price Index jumped by 1.8% in June with annual inflation at a record 13% the highest since 2004. The average house price now stands at £294,845.

Northern Ireland continues to display the highest annual inflation in the UK at 15.2%.

View Full Article: Halifax House Price index inflation continues with supply imbalance

A Guide to Commercial Bridging Loans

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If you are trying to finance a commercial property project but are struggling to pin down a mortgage, taking out a commercial bridging loan could be the answer. However, as with any type of borrowing, it’s important to know all you can before agreeing to anything and signing on any dotted lines. 

So, with this in mind, join us as we not only run through what a commercial bridging loan is exactly but also highlight some of the key benefits that they can offer. 

What is a Commercial Bridging Loan? 

In simple terms, a commercial bridging loan is a short-term financing arrangement secured against the perceived value of a commercial property. 

Whether it be an office space, hotel, warehouse, shop or retail unit, these loans can be taken out by more or less anyone who works in a commercial space and offer a great alternative to a mortgage. In fact, a commercial bridging loan actually comprises two separate types of products within it – what’s known as a bridging loan, and a commercial mortgage. 

In essence, the bridging loan allows the initial commercial property purchase to go through, whereas the business mortgage sets up a longer-term financing arrangement with a lender. 

What Are the Benefits of a Commercial Bridging Loan? 

As we’ve touched on already, commercial bridging loans can offer a huge number of benefits. These typically include: 

• Quick Turnaround Times. Verus Capital is one example of a lender that can arrange a commercial bridging loan in as little as one to two weeks, making them particularly useful whenever you need to access funds quickly. This might include, for example, when buying a property at auction, where it won’t always be possible to set up a commercial mortgage in time for the sale to go through. 

• Short Term Arrangement. Commercial bridging loans can typically be repaid over a period of between one and 24 months. Therefore, if you are waiting for capital to come through but need quick access to funds, taking out a short-term commercial bridging loan could prove a lot more beneficial than a mortgage. 

• Added Flexibility. If you are trying to purchase a commercial property that’s derelict, or in dire need of repair work, you’re unlikely to be eligible for a mortgage. However, taking out a commercial bridging loan could provide you with the funds you need to get this repair work done, helping you secure a better mortgage deal later on. 

Which Situations Are Commercial Bridging Loans Useful For? 

While on the topic of unmortgageable properties, there are a number of other situations where taking out a commercial bridging loan can prove incredibly useful, as proved by their recent boom in popularity. 

These situations largely centre around times when needing a quick cash flow injection into your business. Whether it be to cover a tax bill, pay for new lines of stock or cover any unexpected staffing costs, taking out a commercial bridging loan provides quick and easy access to funds when you need them most. 

Likewise, if you are looking to expand your business by purchasing new commercial premises, a commercial bridging loan can provide you with the funds you need to move more quickly. 

What Are the Eligibility Criteria for a Commercial Bridging Loan? 

Unlike other forms of borrowing, there are no set eligibility criteria for taking out a commercial bridging loan. However, there are a few key things a lender will look for in your application. These include: 

1. Exit Strategy 

When applying for a commercial bridging loan, your lender will be looking to determine how likely you are to be able to repay what you owe. 

More commonly referred to as your exit strategy, you will need to inform your lender on how you intend to repay the loan – whether it be through selling the property in question or taking a commercial mortgage out on it. 

The lender will then assess certain conditions within your application, such as the property’s location and how much renovation work is required, before letting you know whether you’ve qualified for a loan or not. 

2. Credit Score

As with pretty much any type of borrowing, the better your credit score is, the more likely you will be to get approved. 

Therefore, it’s important to keep track of your credit score and make sure it’s looking nice and healthy when applying for a commercial bridging loan. 

While the lender will be basing the bulk of their judgement on your exit strategy, having a poor credit score could hinder your likelihood of being approved. So, being able to show that you’re a low-risk prospect will certainly help your chances. 

3. Significant Industry Experience 

While on the topic of proving you’re a low-risk prospect, showing that you have significant experience in both the buying and selling of commercial property will also significantly aid your application. 

Likewise, your lender will want to see that you are a profitable business with a good track record. Therefore, by showing them your accounts are all in order and outlining any future business plans you have, this could convince them you’ll be able to afford the repayments expected of you. 

How Can I Apply? 

As a slightly more niche type of borrowing, you will need to source a specialist commercial bridging loan broker when applying for a commercial bridging loan. 

They will then have the market knowledge and experience required to not only secure a commercial mortgage for you but also ensure you get the best deal possible for your specific circumstances. 

View Full Article: A Guide to Commercial Bridging Loans

London rents have seen record rises in a very hot spring market

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The latest figures available from Rightmove show that London rents jumped by around 14 per cent in the last year, with some property experts calling it the ‘most competitive market on record’

Matt Hutchinson, a director at SpareRoom, the flat sharing website, has said:

“Rents are climbing across the country and are already reaching record highs in the majority of towns and cities. That’s going to be incredibly unwelcome news for renters, many of whom were already financially stretched and will be wondering how they’ll cope with increased rents, alongside a sharp hike in the cost of living.”

According to Rightmove’s statistics, rents in London are averaging well over £2,000 pcm, a figure that’s up from £1,900 or so last year. This represents the Capital’s biggest annual jump of any region since records began, the leading online property portal says.

In some parts of the capital rents have risen at an even faster rate, with properties in the West End seeing rents rise by just under 35 per cent and Chelsea just under 30% according to SpareRoom.

The Capital struggles through a sever shortage

Like many parts of the UK, the Capital struggles with a severe shortage of rental properties. Landlords are leaving and fewer new rentals are coming onto the market, coupled with a wave of renters coming back into the Capital as the Covid nightmare recedes.

In raw numbers, Rightmove claims that demand is up by around 8 per cent, while supply has fallen by 47 per cent.

All this is happening while the government is threatening major reforms in its Fairer Renting White Paper, reforms which at first sight are proving very unpopular with landlords.

There is a severe mis-match between the number of tenants looking for rentals and the vacancies available: according to Rightmove tenants looking for rentals outnumber the available vacancies by in the region of tree to one.

During the worst period of the pandemic there was a mass exodus from London, particularly among the traditional flat dwellers, young people who had the ability to return to live with their parents. Now, with the virus receding to some extent, and most having had their vaccines, the young renters are drifting back.

From the landlord’s point of view, it’s a complete about turn from when the pandemic hit London – a time of gloom when the market collapsed – and now the renters are returning and finding that vacancies are rare.

It’s got to the stage where in some parts of the Capital bidding wars are developing between tenants desperate to secure the right pad. Estate agents are even holding block viewings where renters are asked to bid against each other, the market is that tight.

However, all is not lost. Rightmove has said there there are signs that more rentals are beginning to come back onto the market to meet the demand. There was a 5 per cent increase in the number of new rental properties becoming available in March over January’s figures, and 16 per cent compared to the shorter month of February.

Demand – supply imbalance

Any increase in supply should start to stabilise rent levels and they may even start to slow the rate of rise next year. Hamptons International’s figures show that buy-to-let landlords are beginning to re-enter the market with over 40,000 homes added to the rental market across the UK in the first quarter, 2022.

Rightmove’s director of property data Tim Bannister has said:

“In the first three months of this year, we’ve seen tenant demand exceed the high levels set last year, which when coupled with the fewer available homes for rent, has resulted in the most competitive rental market we’ve ever recorded. There are several factors affecting supply and demand.

“On the supply side, we’re hearing from agents and landlords that tenants are signing longer leases, which has prevented some of the stock that would normally come back onto the market .”

Rightmove lists Swansea and Cardiff in south Wales, Manchester, Liverpool, Margate in Kent and Grantham in Lincolnshire as particular rental hotspots outside of the Capital.

Savills figures also confirm the exception prices increases with annual growth at around 13.5 per cent, the highest annual growth since 1998, even compensating for losses seen during the pandemic.

Jessica Tomlinson, a research analyst for Savills, has said:

“A combination of strong demand from those returning to London and a continued lack of stock in both the lettings and sales market, has meant that growth across the prime rental market has far exceeded any losses seen over the past two years.

“However, value increases are beginning to plateau after a huge run in areas that were most popular during the pandemic, with growth now more concentrated in areas that suffered the most over the past two years, which still have capacity for growth.

“Tenants today are much less fixated on the location and more focused on finding the right property – our agents have reported that it’s now not unusual to see prospective tenants looking in multiple locations across London.”

“While the market is certainly less panicked than it was last year, it is still being driven by people looking to secure a property early.

“Agents are reporting seeing students and families looking to find somewhere ahead of the new school term – activity they wouldn’t normally see until the third quarter.”

“A lack of stock remains an issue in the commuter belt, however, with just 31 per cent of agents citing that they have seen more come to market this quarter.

“As a result, when asked where demand was coming from, a third of our agents ranked ‘those who were unable to buy’ in their top two, beating ‘try before you buy’ which is typically a more common reason for renting in this market.”

Landlords are facing challenges ahead

With the reforms promised in the Fairer Renting White Paper, in particular the abolition of the no-fault no blame eviction process known as Section 21, and the up-coming costs involved in meeting more stringent statutory energy efficiency standards – EPC level C or above by 2025 – and further out, rising mortgage interest rates.

View Full Article: London rents have seen record rises in a very hot spring market

LATEST: Landlord group picks apart council’s selective licensing plan claims

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Gedling is going ahead with plans to extend its selective licensing scheme despite not issuing a single improvement notice in the new areas during a four-year period.

The Nottinghamshire council points to the success of its scheme in Netherfield for its decision to move licensing into parts of Colwick, Carlton Hill, Daybrook and Newstead Village (pictured).

However, landlord group EMPO was surprised by the findings of its Freedom of Information request, looking at improvement notices during 2017-2020, particularly as the council believes the scheme will help solve anti-social behaviour such as drug-dealing and quad-bike riding in these areas.

The council also reports that of the 400 private rented properties inspected in Netherfield, 78% needed remedial works to bring them up to the minimum legal safety standard and protect the health and safety of tenants.

Business development manager Giles Inman says its query about this high percentage failed to yield any more details.

“We asked them what the hazards were, but they didn’t have that information,” he tells LandlordZONE.

“It’s disappointing and wasn’t a convincing argument. It also doesn’t help engagement and gives us the impression that it’s a money-making exercise.”

Bad timing

EMPO believes the scheme comes at a particularly bad time during the cost of living crisis as licence fees – ranging from £585 to £700 for each of the 664 properties covered – will inevitably be passed on to tenants.

“We also asked them where the resources would come from to deal with anti-social behaviour but that question also went unanswered,” adds Inman.

At a cabinet meeting, council leader John Clarke said: “We have a duty as a council to our residents. I do not have a problem with this and it will help us with another thorn in our side such as Houses of Multiple Occupancy. It will weed out the ones [landlords] that are not doing their job properly and I think it will save lives.”

View Full Article: LATEST: Landlord group picks apart council’s selective licensing plan claims

BIG FINE: Court tells landlord to pay £25,000 over ‘dangerous HMO’

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A rogue landlord who repeatedly ignored a banning order that stopped him renting out his dangerous HMO has been fined £20,000.

Demetirous Georgiou, whose property is at 83 George Street South, Salford (pictured), was convicted of failing to comply with an Improvement Notice and breaching an Emergency Prohibition Order on the house -which had been converted into seven flats – in a case stretching back six years.

Salford Council housing officers first visited in May 2016 and found that the gas and electricity meters had been bypassed as well as inadequate fire safety equipment.

Suspended

Georgiou was served with an order preventing him from letting the flats until he had addressed the problems, while a suspended improvement notice required him to provide heating, lighting and hot water, move the gas and electricity meters to a more suitable location and repair the handrail and balustrade on the first-floor landing.

A follow-up visit in March 2017 found Georgiou had re-let the flats which meant the tenants had to be re-housed. Another inspection in December 2019 discovered the flats had been let again, but fire safety work and work required in the improvement notice had not been done.

Poorly maintained

Every fire door and doorframe was damaged or poorly maintained and escape routes were blocked.

The landlord failed to attend Manchester and Salford magistrates court where, along with the fine, he was ordered to pay £4,700 in costs and a £181 victim surcharge.

Read more: How to insurance an HMO property.

Lead member for housing, councillor Tracey Kelly (pictured), says the council will continue to monitor the property and won’t hesitate to take further action if it is re-let without the work being completed.

“Fire safety systems are there to protect tenants’ lives. Landlords cannot ignore that and put people at risk,” she adds.

Read more news about Salford’s HMO plans.

View Full Article: BIG FINE: Court tells landlord to pay £25,000 over ‘dangerous HMO’