The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
Spectator.co.ukRough justice, but MPs have got Sir Philip 'Shifty' Green bang to rightsSpectator.co.ukBut you will probably agree with the MPs that his sale of the store chain to a consortium led by former bankrupt Dominic Chappell, who had no money or retail experience behind him, was a cynical outrage. The deal seems to ... But still the MPs' report ...and more »
Ars Technica UKBitcoins aren't currency, so state money laws don't apply, says Florida judgeArs Technica UKAccording to the judge's summary, at this meeting Arias, working still undercover, told the vendor that he was interested in buying “stolen credit card numbers from Russians” and would be using the bitcoins to pay for them. Arias asked Espinoza if he'd ...Florida Man cleared of money laundering after selling Bitcoins to Agent PonziThe RegisterBitcoin isn't money, a Florida judge rulesBusiness InsiderBitcoin: Man charged with illegally laundering $1500 worth of currency has trial thrown outInternational Business Times UKMiami Herald -Miami Heraldall 73 news articles »
Mirror.co.ukSantander plans to slash 123 current account from 3% to 2% interest rateMirror.co.ukThe rumour emerged on the same day Santander revealed profits in the UK jumped 16% to nearly £1.1bn between January and the end of June. Santander's 123 ... The figure includes both current account and 123 credit card customers. Santander said ...and more »
Moneywise MagazineThe pros and cons of moving your pensionMoneywise MagazineYou might be tempted to switch pension providers to get your hands on your money, find a better deal, or to bring a number of pensions into one place. But before you move your .... If this is just some low-cost funds, then a personal pension from an ...
Brexit may bring down equity release hopesMoney ObserverA Baring Asset Management report estimates around 8 per cent of working age people (equating to three million across the UK) now plan to retire using the proceeds of the sale of their home. McPhail says: 'The growth in lifetime mortgages will only ...
Have you met...
Latest Members:


alsabaak


NO


qasrksa


marwasaf


lolo


danny


midomidi2013

 

‘Accidental landlords’ are taking unknown risks

So called ‘accidental landlords’, a new breed of landlord who lets out their property to avoid selling at a loss, are providing a welcome boost to the supply of housing at a time of very high demand for private rented homes, according to buy-to-let specialist Paragon Mortgages.
 
However, Paragon Mortgages’ managing director John Heron warns that many of these landlords may be ignorant of the large number of regulations involved in letting property. It is estimated that there are more than 50 Acts of Parliament and 70 sets of regulations governing the private rented sector1. Landlords risk fines if they let out their property without complying with the necessary legislation.
 
Heron says: ‘The onus is on the landlord to make sure they comply with all regulations and they are liable if something goes wrong, even if they employ the services of a letting or managing agent. Ignorance of legislation is not a defence.’
 
‘People who are letting out property they have been unable to sell are unlikely to have a detailed understanding of the legal requirements they have to comply with. For example, do they have an Energy Performance Certificate for the property or do they have a Gas Safety Certificate? What have they done with the tenant’s deposit and have they got adequate insurance in place? Failure to comply with certain regulations could not only result in heavy fines, it could also mean a custodial sentence.’
 
In addition, owner-occupiers could contravene their mortgage conditions if their lender does not know they are letting their property, which could have a knock-on impact on tenants if the property was repossessed.
 
Heron concludes: ‘The only solution is for landlords – accidental or experienced - to ensure they have a thorough understanding of relevant regulations. Getting help with this is not difficult. It would make sense to join the National Landlords Association, which provides a wealth of information and advice to their members. Also using the services of a professional letting agent, preferably ARLA registered, will make sure that an experienced individual is on hand to guide you through the process.’
 
Common regulations in the private rented sector include:
 
Gas and electricity: Boilers must be checked annually by a Corgi-registered tradesman, who will issue a Gas Safety Certificate. Tenants should be given a copy when they begin the tenancy and within 28 days of an annual check. All electrical items and fittings should be checked regularly as landlords could be liable if a tenant is harmed by an electrical item provided.
 
Fire safety: If the property was built after June 1992, tenants must have an adequate means of escape and a mains-operated inter-connected smoke alarm should be fitted on every floor. It the property is a furnished let, furniture and furnishings made after 1950 must meet fire resistance regulations. The National Landlords Association has produced a Fire Safety Logbook, available from its www.landlords.org.uk website.
 
Regulator Reform (Fire Safety) Order: Landlords who own flats in a block are required to liaise with the managing agents and other homeowners to ensure that a fire risk assessment of the common parts is carried out.
 
Energy Performance Certificates: From October 2008 it became a legal requirement for landlords to make an Energy Performance Certificate of the property available to prospective tenants when letting a property. Failure to do so can result in a £200 fine and the landlord being prevented from marketing the property until the EPC is obtained. For further information on EPCs visit www.paragon-epcs.co.uk.
 
Tenancy deposit protection:From 6 April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, must be protected by a tenancy deposit protection scheme.
 
HMOs: Rental homes spread over three stories or more and occupied by at least five tenants in two or more households are classed as Houses in Multiple Occupation and require a license by the local authority. A comprehensive guide on HMOs is available to download from the Literature section of the www.paragon-mortgages.co.uk website. 
Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks