Tag Archives: Good Landlords

Bank of Ireland Tracker Rate Legal Campaign Fundraising re-launched Latest Articles

The Bank of Ireland Tracker Rate Legal Campaign began in March 2013.

History to date

100 affected BoI borrowers each paid £150 plus VAT into an initial legal fees fighting fund and instructed Justin Selig of The Law Department to obtain Counsels opinion on the merits of our case.

Consensus of legal opinions was that regulators should fight the case on several bases including Unfair Terms in Consumer Contract Regulations.

Detailed complaint letters were prepared by The Law Department with assistance of Counsel and submitted to the OFT, FOS and the FCA.

The OFT immediately passed their case over to the FCA.

The FCA sought our permission to send our complaint to the Bank of Ireland on the understanding that we would be copied into their response. BoI employed a QC to respond to the FCA and our legal team duly received a copy which was “wishy washy” to say the least. Nevertheless, the FCA felt they had concluded their duties and didn’t consider our case any further.

The FOS are still prevaricating after 10 months!

The complexities of the case lead us to believe, at the time, that it was unlikely that we would be able to raise sufficient funds to progress to Court. Therefore, fundraising was suspended whilst we re-grouped to consider our options. Nevertheless, the PR battle has progressed well on the back of a very similar case affecting borrowers of the West Brom Mortgage Company. A few hundred additional borrowers have completed an “Expression of Interest” form in respect of taking legal action against the Bank of Ireland since the fundraising was suspended. These people have paid nothing.

Moving forward

Those members who paid fees into the legal action fund have been briefed on considerable work undertaken by The Law Department, Counsel and even a QC, all of which have been working without payment since fundraising was suspended. Given the success of the fundraising for legal action against the West Brom Mortgage Company and the advice and strategies agreed between the enhanced legal team we are now far more confident that funds will be raised and that privately funded litigation will be successful.

To obtain a copy of the briefing which was sent to clients who instructed The Law Department, so that you can make a decision of whether to be a party to ongoing legal action, will require you to instruct The Law Department and make an initial payment of £150 plus VAT (i.e. £180 in total).

Payment can be made my cheque payable to “The Law Department Client Account” or by electronic transfer to:

Account Name: The Law Department Client Account

Account Number: 06658997

Sort Code: 12 24 82.

Reference: your full name

To instruct The Law Department you will also need to complete and return a letter of instruction and return it with the following documentation:-

  1. Proof of identity – copy passport of driving licence
  2. Proof of residence – a utility bill for your home address within the last three months
  3. A copy of your mortgage offer letter
  4. If available, a copy of any terms and conditions and other literature you have obtained in connection with your mortgage. This includes and marketing literature.
  5. Link to Letter of Instruction Template HERE

On receipt of the above you will receive further details of advice and strategies. You will then be given the option of whether to commit to litigation or not.

Proceeding to litigation

This will require 150 people to each pay an additional £500 into The Law Department client account as a gesture of commitment and for each affected borrower to agree to a further potential liability of £1,000 if/when litigation commences. If the number of instructions is greater than 150 then the liability will fall pro-rata, for example, if there are 300 instructions the additional potential liability will halve.

If legal action is aborted funds paid will be refunded less costs shared pro-rata.

Our legal team are confident of a positive outcome if sufficient funds can be raised/pledged to commit to further legal action. Bank of Ireland Tracker Rate Legal Campaign Fundraising re-launched

Secure Forum

Members who agree to proceed to litigation on the above terms will be granted access to a highly secure internet forum. The forum operates on the same technology as electronic banking, is hidden from search engines and has several additional layers of security. The purpose of this forum will be to share confidential, commercially sensitive and legally privileged strategies and for members to ask questions, either via private messages or via the secure forum where Q&A’s are likely to be of interest to all members. The private messaging service will also enable members to communicate in confidence, and securely, between themselves, e.g. to swap telephone numbers.

To-Do List – 4 simple steps

1) Tell everybody you know to support the marketing campaign (details below)

2) Share this post via your social networks (see icons at the bottom of this page)

3) If you use Twitter please re-tweet these Tweets…


4) Marketing

The success of our campaigns are highly dependent upon quality marketing including PR and meeting with centres of influence. Property118 operates a “not for profit” business model and is, therefore, totally reliant of donations to fund marketing and other activities such as the creation and ongoing hosting our the above mentioned secure forum. Whether you are immediately affected by a tracker rate hike or not, it is in your interests to support the Property118 marketing fund to raise awareness of important issues which could affect all landlords and to discourage lenders which YOU have tracker rate mortgages with from hiking your tracker rate margins. For further details please CLICK HERE.

All comments via the existing Bank of Ireland discussion thread please CLICK HERE


Campaigns Against Tracker Mortgage Rate Hikes Reach Parliament Latest Articles

David Morris MP and Mark Alexander considering an Early Day Motion at the Houses of Parliament 21-01-2014

David Morris MP and Mark Alexander considering an Early Day Motion at the Houses of Parliament 21-01-2014

The campaigns organised by members of Property118 against hikes to tracker rate mortgage margins moved up a gear yesterday when I was invited to meet with David Morris MP and his aide Andre Walker at The Houses of Parliament. I spent 90 minutes with them in total. I also managed to get a very quick 5 minute meeting in between parliamentary debates with Jason McCartney MP (Colne Valley) who has been very supportive of our campaign in terms of meeting his locally affected constituents and lobbying fellow MPs.

Over 20 MPs have expressed concerns and support for their  constituents affected by the actions of West Brom Building Society and Bank of Ireland. A debate in the House of Commons has already been applied for by two MPs.

Campaigners have been lobbying their MPs over the last few months and much support has been pledged. Many of the MPs wrote to John Westhoff, CEO of the West Brom, but all were fobbed off by similar letters claiming that their rate hikes were legal and necessary to subsidise other areas of there business which have performed badly in recent years. Senior banking barristers and an eminent banking QC have poured over the Terms and Conditions and believe what these lenders are doing to increase their profits is an illegal breach of contracts. In both cases the terms of the mortgage offer letters contractually and legally take precedent over conditions specified in the lenders mortgage conditions booklets which are generic to fixed, standard variable and tracker rate mortgages. It is terms in the more generic booklet that West Brom and Bank of Ireland are ‘hanging their hat on’ in respect of their hikes to the margins being charged to their borrowers over the Bank of England base rate.

Campaigners feel that the mortgage lenders are attempting to use their financial muscle and the disincentive in respect of huge costs to litigate to evade justice but the strategy of these lenders does not appear to be working.

To date, over £100,000 has been raised and lodged with Solicitor Justin Selig which is enough to commence legal action. More will be required to fight a case at appeal which is highly likely as a strategy from the lenders if/when the campaigners win the first round of litigation in the lower Courts. With this in mind, alternative strategies to litigation are being considered to settle the argument out of court in the short term because the MPs cannot progress matters once the judiciary are involved.

As fortune would have it, whilst I was at the meeting David Morris MP was invited to submit a question to Chancellor George Osbourne on Tuesday 28th. Mr Morris seized the opportunity and immediately submitted a question relating to the conduct of mortgage lenders. We should find out later this week whether it is approved.

As if that wasn’t enough from my first visit, I was also introduced to several other MPs between debates. These were only quick introductions but many of them are aware of the campaign due to the excellent lobbying of Property118 members.

The icing on the cake was helping to draft an EDM “Early Day Motion”, which has now been submitted by David Morris MP, which will be publicly available and no doubt of much interest to the press. The more MPs that sign up to support this EDM the more likely it is for the debate to take place and for the motion to be passed. We also prepared a very short briefing note to be distributed to other MPs showing an interest. There is a LOT more to be done on our side too. I need all campaign members, whether directly affected or not, to contact your MP again and to ask them to add their support to Early Day Motion number 976.

I strongly recommend following up any electronic correspondence with a telephone call because MPs are bombarded with thousands of emails every day and they can very easily be overlooked.

To contact your MP please click here, then copy and paste the text below:-

Dear ……

As one of your constituents I am asking you please to add your support to Early Day Motion number 976 as submitted by David Morris MP. Below is the content of the EDM and some background notes for you to consider. Given the importance of this matter I would also request you to apply for a debate. If a telephone call or meeting would help, either with me or the campaign organiser please let me know.

SUBJECT – Conduct of Mortgage Lenders – EDM number 976 

That this house condemns mortgage lenders breaching tracker rate mortgage contracts by unilaterally increasing the margin they charge over the Bank of England base rate in order to increase their profit margins and deliberately targeting borrowers where consumer protection law is ambiguous; and calls on the Government to investigate alleged associated recent activities of the Bank of Ireland and West Bromwich Building Society.

Additional Notes

There are believed to be 2.5 million tracker rate mortgages, i.e. mortgages which track the Bank of England base rate at a fixed margin for a defined period

137,000 readers are following a campaign to expose this scam via the Property118 internet forum as concern that other mortgage lenders will follow suit is increasing

Alleged examples of deliberate misuse of ambiguous consumer protection laws include ….

  • 12,200 Bank of Ireland mortgage accounts whereby a mixture of homeowner mortgages and buy to let mortgage borrowers were targeted – all of which pre-dated the Oct 2008 mortgage regulations
  • 6,700 West Brom Building Society mortgage accounts whereby landlords with 3 or more properties have been targeted – there is no case law to define what would constitute a consumer landlord although there is case law to acknowledge that landlords can be consumers. Therefore, Unfair Consumer Contract Terms legislation may or may not apply and it would appear that the WBBS are relying on affected borrowers not being able to raise sufficient funds to challenge this or litigate other points of contract law.

All comments via the main forums please.

Link to Bank of Ireland forum

Link to West Brom forum

David Morris MP commented “I’m extremely concerned about the fact that mortgage lenders are increasing the margin they make on tracker mortgages. This practise is damaging to the economy, immoral and may even be illegal. The Financial Conduct Authority must investigate this urgently.”

REQUEST FOR HELP!

I expect to be called to London to provide further briefings to both MPs and and the media and intend to use the campaign marketing fund to pay for my travel expenses, wining and dining key contacts and loss of *fee-earning time from other consultancy work, (*capped at a maximum of £500 per day). We need to top this fund up and I am highly reliant on your generosity for this as the people I will be meeting will not be too impressed if the lunch budget only extends to a McDonalds or a Subway! Please donate HERE.

If you haven’t already signed up please complete the form below.

The deadline for submission of instructions has now expired. However, it may still be possible to join the representative action subject to paying Court fees and an additional cost to cover associated administration. For details please email : carla@cotswoldbarristers.co.uk


Calling all Wikipedians Latest Articles, UK Property Forum for Buy to Let Landlords

Neither Property118 nor myself have a page on Wikipedia and that makes me 🙁

Can you help?

I understand that other people have to compile the page and the more input the better?  Calling all Wikipedians

If this is the case I suggest the following as a starting point.

Property118 forum

An online forum and news feed with a mission to facilitate the sharing of best practice amongst UK landlords and letting agents.

Founders of The GOOD Landlords Campaign.

Funded entirely by sponsorships and donations.

Google News Publisher.

Claims to have nearly 200,000 subscribers to its weekly newsletters.

Founded by Mark Alexander – Twitter handle @iAmAlandlord


SEAL – South East Alliance of Landlords Landlord News, Latest Articles

SEAL - South East Alliance of Landlords

Members of the South East Alliance of Landlords (SEAL) are putting together a bedsit task force to go Street to Street in Southend in a war on neighbours from hell.

Judith Codarin, secretary of SEAL said: “We will choose sections of streets that are troublesome. We will find anyone who lives there and listen to issues. We will try to find landlords who aren’t members, talk to them and try to get them to join.”

SEAL was formed to coordinate a response to Southend-on-Sea Borough Council’s plans to introduce Selective Licensing. It represents owners of almost 6,200 properties with hopes to represent 95 per cent of the local rental sector within three years.

SEAL – South East Alliance of Landlords

SEAL members can be easily identified by a sticker in a front window of their properties.

All but one of the 65 complaints received to date, varying from maintenance issues to more complex Freehold problems, have been resolved by SEAL, the last received to be dealt with within the next few days.

Self-regulation in this way is hoped to free up Southend Council to concentrate on non-members, but with only four Council officers to police over 6,000 other rental properties tenants home-owners are still suffering from a few bad landlords and nightmare neighbours.

Chairman Martin Ransom hopes to set up a new arm capable of helping landlords bring low-quality housing up to standard and said: “We have brought in a new member of the board with experience in this area. He has worked with a specific landlord, with whom the council has had historical issues. He has worked with him to get him up to standard.”

As quoted on their own website “By becoming a member of SEAL, you are demonstrating that you are willing to agree to a higher standard of management. It is vital that SEAL membership is widespread throughout the Borough of Southend as the larger our membership base, the more we can demonstrate to the Council our effectiveness. It is important also that membership continues to grow, as if SEAL fails, the Council retains the power to reconsider Selective Licensing.”

Mark Alexander, founder of Property118 and The GOOD Landlords Campaign commented “it is refreshing to see this kind of initiative and especially one so well supported. We have a long held opinion that Selective Licensing is not the answer to anti-social behavioural problems or criminal elements operating in the Private Rented Sector. We hope the group will take a look at the enforcement model being adopted by Lewisham Council and learn from that. The SEAL initiative could prove to be a superb method of routing out and reporting the worst offenders. Sadly a handful of criminals can spoil the reputation of an entire sector. Enforcement is required, NOT a stealth tax on good landlords which is ignored by the true villains.”


Donations and Fundraising GOOD Landlords Campaign Sponsors, Latest Articles, UK Property Forum for Buy to Let Landlords

Our forums are funded entirely by donations and sponsorships, we do not carry advertising, nor do we charge subscription fees as this would be self defeating towards our mission. Please help us to keep it this way, there is no minimum donation, every little helps.

The mission of The GOOD Landlords Campaign is to promote and facilitate the sharing of best practice amongst landlords and letting agents operating in the UK.

Have you had at least £50 of value out of Property118?

If you would like to make a donation, either as a “one off” or a regular monthly amount please complete the relevant form below.

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Popular questions from tenants to landlords GOOD Landlords Campaign Sponsors, Latest Articles, The GOOD Landlords Campaign, UK Property Forum for Buy to Let Landlords

It’s not just landlords and letting agents using our property forum these days. Recently we have had several Readers Questions posed by tenants who have been badly treated by their landlords. Popular questions from tenants to landlords

If there’s one thing good landlords despise almost as much as bad tenants it is bad landlords who ruin the reputation of our industry. Naivety, criminal acts and rogue behaviour tends to result in increased calls for regulation and gives authorities excuses to create more stealth taxes on good landlords in the form of licensing and other legislation, which of course criminals and other bad landlords simply continue to ignore! As you might suspect therefore, good landlords have been very keen to help tenants experiencing difficulties with rogues by telling them how they can protect their interests and claim compensation.

As it is the mission of The GOOD Landlords Campaign to facilitate the sharing of best practice amongst landlords and letting agents we feel it is important for all landlords to learn from these discussions. Forewarned is forearmed and an opportunity for you to know what you should be doing and to get it right.  The consequences of getting things wrong are very clearly laid out by some incredibly experienced landlords and property professionals in these discussions.

Some of the most popular discussions recently are as follows:-

Retaliatory eviction

Retaliatory eviction – possibility of civil litigation?

Read this discussion

 My landlord thinks I’m a lodger – please help me

My landlord thinks I’m a lodger – please help me

Read this discussion

 Ex-girlfriend-refusing-to-move-out

Ex-girlfriend refusing to move out

Read this discussion

 I have been asked for a 12 months rent in advance

I have been asked for a 12 months rent in advance

Read this discussion

 

 


Deed of Assurance Document Template Download Advice, Buy to Let News, Landlord News, Latest Articles, Letting, Lettings & Management, Property Investment Strategies, Property News

If you have the right type of properties to attract long term, good quality tenants, don’t stitch yourself or your tenant up with a long term AST. Consider the benefits to all concerned of offering a Deed of Assurance instead. Give your tenants the peace of mind they want and an incentive for them to perform to your requirements impeccably. It’s then a true win/win situation. Tenants know that if they perform you will have to pay up if you take possession of your property. On the flip side you may well stand a far better chance of being able to attract the tenants you really want, a premium rent and less voids periods too.

A Deed of Assurance is a relatively simple legal agreement which sits alongside an Assured Shorthold Tenancy Agreement “AST”. It is a separate agreement between landlord and tenant which does not affect the landlords rights to serve notice or to obtain possession, therefore it does not affect the rights of a mortgage lender either. However, it does offer tenants peace of mind.Deed of Assurance

From a tenants point of view, a Deed of Assurance provides far more flexibility than a long term tenancy because they are only tied in for 6 months and can then move on if they need to. What a Deed of Assurance offers in addition to an AST though is peace of mind.

A Deed of Assurance is a document in which a landlord promises to pay an agreed level of compensation to a tenant if possession is obtained within a given time period. I have never had to pay out compensation and because I’m in the business to provide quality tenants with quality accommodation long term I see absolutely no reason why I would ever need to.

The compensation amount offered by the landlord can be anything but obviously the idea is to agree something which is meaningful to both parties. For example, I offer to pay anything between £1,000 and £5,000 compensation if I obtain possession within the agreed period, providing the tenancy conditions have been observed impeccably by the tenant of course.

Similarly, the agreed period can be as long or short as makes sense too. Typically I offer 3 or 5 year terms but I would happily consider a longer period if the circumstances were right. What this means to the tenant is that if I obtain possession within the agreed period I will pay out compensation. This doesn’t stop me serving notice on a model tenant, it just means that if I obtain possession the tenant is compensated for their inconvenience.

But what if the tenant has not complied with the tenancy? Well that’s covered too. If the tenant does not comply the compensation isn’t payable, that’s very carefully worded into the Deed of Assurance by the solicitors who drafted it. Obviously there could be a dispute over whether the tenant had complied with all of the reasonable conditions in the AST and in that case the tenant would have to make a claim against the landlord for the compensation through the Small Claims Courts.

Deed of Assurance is not for everybody – by offering a Deed of Assurance a landlord is agreeing to pay compensation if they obtain possession of a property within a time scale they commit to with their tenant. It doesn’t always make sense for a landlord to make such a commitment but in some circumstances it can pay dividends. If in doubt, take professional advice.

What do others think?

The simplicity of the Deed of Assurance is its strength. Chief Ombudsman Lewis Shand Smith confirmed this by saying “The Deed of Assurance clearly sets out what the tenant can expect from the landlord and vice versa. In a sector where clarity might be lacking, this is a fantastic development”.

What’s the point of offering a Deed of Assurance?

Demand is very high from tenants who want/need greater assurance from their landlord that they are not going to have to move after just six months even if their tenancy has performed impeccably. Whilst a Deed of Assurance doesn’t actually provide tenants with any greater security of tenure, it’s certainly the next best thing. It’s a landlords opportunity to put his money where his mouth is, or perhaps more to the point, it’s a tenants opportunity to ask a landlord to do so when a landlords says words along the lines of “if you comply with your tenancy you can stay here for as long as you want”.

In practice, by providing properties which appeal to the types of tenants who want extra peace of mind in terms of stability they are also prepared to pay for that peace of mind. Many of my properties are typical family homes near to good schools, otherwise they are suburban bungalows which appeal to baby boomers and retired people. When I explain what a Deed of Assurance is to them they love it and often choose my properties over comparable properties for that reason alone. In many cases I’ve had several people bidding against each other to move into one of my properties despite there being plenty of comparable alternatives at lower prices. The reason they are prepared to pay more is for that peace of mind and legally documented assurance.

 

To purchase the Deed of Assurance document template please see below. The price is £97 for unlimited personal use. 100% of funds raised are donated to The GOOD Landlords Campaign.

Buy Now

Legal Opinion on the Deed of Assurance

Statutory Compliance – the Law of Property (Miscellaneous Provisions) Act 1989

This simply sets out a list of requirements which must be fulfilled by anybody who wishes to create a valid and enforceable contract for a disposition of an interest in land. If you fail to comply with the requirements you just end up with an attempt to create an interest in land which cannot be enforced. The interest in land that we are concerned with is, of course, the term of years granted to the tenant under an AST. Typically an AST is completed by the production of two identical copies of the tenancy agreement, one of which is signed by or on behalf of the landlord and the other of which is signed by or on behalf of the tenant; however, it is equally possible (but less common) for both copies to be signed by or on behalf of both parties.

Whilst it would be technically possible to modify (by addition) the AST so as to include words equivalent to those contained in the deed of assurance, our legal advisers chose not to recommend this for two separate reasons:

(i) the terms of the assurance are not in fact terms of the AST. The AST is one agreement (which creates an interest in land) while the assurance is a separate collateral agreement which does not create any interest in land. The assurance sets out the landlord’s intention as to the extension of the minimum term provided in the AST and in particular provides for certain consequences that will follow in the event that the intention to extend is frustrated or not performed for some reason.

(ii) the AST is complete and whole and enforceable under the statute because it does not refer (and does not need to refer) to any other document for its terms. The deed of assurance on the other hand does refer to the AST and hence (by virtue of section 2(2)) is deemed to incorporate the AST. Thus (for the avoidance of doubt) the AST is, for the purpose of the statute incorporated in the deed of assurance, although the deed of assurance is not incorporated in the AST.

For those reasons neither the deed of assurance nor the AST would be struck down as unenforceable by reason of the provisions of section 2 of the Law of Property (Miscellaneous Provisions) Act 1989.

(B) Why utilise two documents instead of one?

This is where the position of the mortgagee comes in. Although there are countless criticisms that one can validly raise against many of the large buy to let mortgage lenders, nevertheless they are to be regarded as a necessary evil. In very many (albeit not all) cases the ability of the landlord to own the property is entirely dependent upon the mortgagee advancing a large part of the purchase price. Typically such mortgagees are imperious and unyielding and often unreasonable in their attitude to the issue of letting so that they (under their terms and conditions, to which the landlord is forced to subscribe whether he likes it or not) will only permit the creation of ASTs with a short primary term, usually six months and almost never more than 12 months. Their justification for that stance is that they will not sanction any arrangement which might hamper or abstract their ability to obtain possession of the property and sell it with vacant possession in the event that the landlord defaults under the mortgage.

Given that the object of our exercise is to provide maximum comfort to the tenant in terms of the prospect of securing an extension in the effective term of the AST (with compensation available if the extension fails) the arrangement must avoid infringing the landlord’s mortgage covenants and the requirements of the mortgagee while still furnishing an enforceable remedy in the event that the tenant does not enjoy the full benefit of the extended term. Although there is some variation from lender to lender, it is in our experience generally the case that if the terms of the deed of assurance were directly incorporated within the AST itself, then the AST would no longer be acceptable to the mortgagee, resulting in a situation in which either consent would be refused or, alternatively, the landlord would all make breaches in mortgage covenants by entering into the (extended) AST. Obviously, we could never advise a landlord to breach mortgage covenants; apart from anything else it would render him liable to immediate adverse action if he were to do so. The reason why the mortgagees would not consent to the extended AST wording is that, if they were to do so, the tenant would or might have a sound argument against the granting of an order for possession and sale in the event that the landlord were to default under the mortgage.

By keeping the terms of the assurance in a separate deed, the possibility of valid objection by the mortgagee is eliminated. The landlord and tenant enter into a separate arrangement (outside the AST although referring to the AST) and the objectives of every party are achieved.

While we are not exactly “worried about lenders”, we cannot ignore them nor the rights and powers which they enjoy.

The problem is that if a mortgagee approves a document which contains an indication that the tenant will or may enjoy an extended term of tenancy, then, whatever protective wording you may put in, it would always be open to the tenant to argue in court (if faced with the prospect of premature eviction by reason of a landlord’s mortgage default) that he entered into the tenancy agreement specifically in reliance on the expectation of that extension, so that the mortgagee who had approved the wording would be unable to recover possession by reason of the rules of estoppel. That problem does not even arise as long as the mortgagee does not consent to nor approve the document which gives rise to the expectation. In other words, however good your wording might be, the “two separate documents” approach is inherently preferable.

(C) Why utilise a deed (as opposed to a simple agreement) for the assurance?

The decision to proceed by way of deed for the assurance was a “belt and braces” election, based on principles of precaution rather than necessity. When we were setting this up we did consider the possibility of having the assurance contained in a simple agreement, not by way of deed. However, it was perceived that in that case there would possibly be some element of risk or prejudice to the tenant. The problem is that it is arguable that a simple agreement not effected by way of deed might perhaps be unenforceable by the tenant. That is because it is not obvious that the tenant provides any “consideration” for the various promises and obligations undertaken by the landlord which form the core of the assurance. In other words, the landlord undertakes responsibilities that go well beyond his responsibilities under the AST while the tenant does not undertake any recognisable responsibilities or obligations beyond those already contained within the AST. In general under contract law a party can only enforce a promise given by another party if the enforcing party has provided some consideration in return for that promise. That rule does not apply where the promise to be enforced is contained within a deed. That is one of the distinctive features which differentiate between a deed on the one hand and a simple written agreement on the other hand.

The use of a deed might be regarded as overkill and unnecessary but it is safer and better for the tenant to have the assurance terms contained within a deed. There is no downside or disadvantage (apart from the modest requirement that signatures be witnessed) from the point of view of either party by employing a deed as the mechanism for the assurance and so that is what our legal advisers recommended.


Student Guarantee with limited liability HMO's & Student Lets, Latest Articles, Legal, Lettings & Management, Property Investment Strategies

It is that time of year – student tenancies are in the news and up and down the country alert parents are saying “it is not fair – if my sons mate doesn’t pay his rent the landlord can come after me!”

Some landlords may feel that having 4 people guaranteeing a joint tenancy for 4 unrelated people is fine, after all, it does give them extra security, but it is a reality that in the lower courts, judges tend to look at the ‘fairness’ of an agreement, not just its legality, and a landlord trying to enforce a large debt against a guarantor in this situation may have difficulty obtaining a court order.  I myself have had a judge asking me (in so many words),”do you think this is fair?”. Student Guarantee with limited liability

We have put together a guarantee document that limits an individual guarantor’s responsibility for non-payment of rent to the relevant tenants ‘share’ of the rent.  Example – If Mrs Smith is a guarantor on a 4-person joint-tenancy with £10k pa rent, and Smith Junior can show he has paid £2,500 then Mrs Smith has no liability.

This ‘fairness’ can be a major selling point to tenants/guarantors, probably making obtaining a guarantee from parents easier and helping to convey to prospective tenants that the landlord will treat them fairly in other matters too.

I have added some further guidance notes in the comments section below and please feel free to ask further questions by posting comments.

If you would like to acquire a copy of the deed of guarantee referred to in this article then you may purchase a template by completing the form below. The price is £17.99 inclusive of VAT, the proceeds of which will be distributed as follows:-

£4.99 to Tenancy Services

At the request of the author “Chelseas Angels” childrens cancer charity will receive £5

£5 to The GOOD Landlords Campaign

£3 VAT

 


Good Landlords Campaign Board of Directors GOOD Landlords Campaign Sponsors, Latest Articles

The GOOD Landlords CampaignOne of my goals is for The GOOD Landlords Campaign to eventually become a registered charity. For that to happen there are several hoops to jump through, the first of which is to form a steering committee.

For the moment, The GOOD Landlords Campaign mission statement is “to promote and facilitate the sharing of best practice amongst UK landlords and letting agents”.

Forming a charity isn’t something I have done before but I was a founder of the NACFB (National Association of Commercial Finance Brokers) so I do have some insight into forming a professional trade association. I served on the steering committee and also as the first Membership Director. 21 years on the NACFB is the UK’s leading professional body with over 1,000 member firms and virtually all providers of commercial finance having signed up as Patrons.

I am looking for volunteers to form a steering committee for The GOOD Landlords Campaign with the possibility of being voted onto the Board of Directors at the inaugural members meeting of the charity.

Subject to having a sufficient number of volunteers (ideally around a dozen) the plan is to hold a meeting every two months.

If this is something you would like to volunteer for please complete the form below. I will contact all interested parties towards the middle of September with a view to arranging the first meeting mid October 2013. The initial agenda will include:-

  • Mission Statement
  • Vision
  • Funding
  • Sponsorship
  • Increasing awareness

Expression of interest form


Alternatives to Landlord Licencing Schemes Latest Articles, UK Property Forum for Buy to Let Landlords

The alternatives to Landlord Licensing Schemes require joined up thinking, changes to data sharing protocols within local authorities and revised high level directives and strategies which must begin at Government level. 

Perhaps the first question to ask is what is Landlord Licensing all about? Is it really about raising standards or is it more to do with raising funds?Alternatives to Landlord Licencing Schemes

Funding

If society as a whole desires that people should not be subjected to sub standard housing conditions then society as a whole must pay to enforce this (howsoever that might be done) whether the money is raised at a local level or centrally.

It is both unacceptable and wholly undemocratic that landlords should be singled out by Government, Councils and Local Authorities to pay stealth taxes badged as licensing fees on the pretence that the money will be used to fund enforcement related initiatives.

Costs associated with licensing schemes imposed on landlords are funded through increased rents. Neither landlords nor tenants want this, particularly as there is clear evidence (demonstrated in this article) that landlord licensing schemes have proven not to be an effective solution to problems in the Private Rented Sector.

Recycling of Court awarded penalties

The high costs associated with prosecuting criminal landlords is borne by Local Authorities, however, fines and penalties go to the treasury. If these funds were to be redirected to the prosecuting authorities this would assist funding of additional prosecutions and create incentives to bring more criminal landlords to task. Continue reading Alternatives to Landlord Licencing Schemes


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