15:20 PM, 19th April 2018, About 4 years ago 10
We have 5 properties (a mix of family let and HMOs) which we currently own and manage in a general partnership. All the properties are unencumbered (no mortgages) and we wish to incorporate our business via s.162. So far, so clear.
The next hurdle is to either go down the BICT route necessitating two or more legal instruments per property or transfer the properties to the limited co. at the Land Registry.
Either way, there will be existing AST agreements in force where the contracted parties are still the tenants and ourselves (the general partnership).
The question is: can the limited co. (now the new owners of the properties) enter into an agency style arrangement with ourselves (the old general partnership) so that we effectively become a proxy for the limited co. using a cross between a classic agency agreement and a lettings agency agreement?
The aim is that from the tenant’s point of view, nothing changes; the AST agreement stays the same, the rent payments to the bank remains the same and so on.
If we become, in law, a lettings agent rather than a proxy, I believe we might be bound by the same legal framework as regular letting agencies. Would we need to become ARLA registered?
This might be a complication too far.
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