Tag Archives: tenants

The slightly unusual dilemma of a Croydon landlord Fun Stuff, Latest Articles, Question of the Week, UK Property Forum for Buy to Let Landlords

Re-published – first published on 21st October 2013

Dear Mark (and all Property118 readers)

I think my wife might be having an affair with one of my tenants. The usual give away signs are all there, lots of “girlie nights out”, which she never used to do, and phone calls where the other person just hangs up when I answer the phone, mainly when I wouldn’t usually be at home. It’s been going on for months and I didn’t put two and two together until recently.

When I do 1471 the callers number has been withheld but the other day the callers number was there so I called it back and sure enough it was one of my tenants. He said he must have called my number by accident but soon after that my wife got a text and had to “pop out” because one of her work colleagues had apparently “lost her keys” and couldn’t lock up. I offered to take her but she insisted on going alone as her friend had told her she was having marriage problems so they might go for a drink afterwards for a girlie chat. The slightly unusual dilemma of a Croydon landlord

When she got home she said she was having another night out with the girls on Friday so I decided just to agree. My plan was to stake out my tenants property and she if she would turn up.

I remember my wife showing this tenant around the property when it became vacant and raving about how good looking he was. She also did the check in so I’ve never actually met him but I have spoken to him on the phone a few times.

Friday came and I decided to get a taxi from work and get dropped off around the corner from my tenants house so my wife had no chance of spotting my car if she did turn up. I decided to climb onto the garage roofs opposite my property, armed with my camera and telescopic lens where I could get a better view and a good shot. I laid on the roof for around an hour in the dark and cold, continually focussing my camera on my rental property so I could get the perfect shot for evidence purposes.

Whilst I was up there waiting I zoomed into the roof area and noticed that I have a few tiles missing and the guttering is coming away from the roof. My question, therefore, is does anybody know a good roofing contractor in the Croydon area?

Regards

LMAO


Safety laws should be applied to ALL property owners Landlord News, Latest Articles, Property Investment News, Property Maintenance

Safety laws should be applied to ALL property owners

I am in favour of new regulations which could help to save lives but I don’t understand why only the lives of tenants seem to matter in the eyes of the law.

I don’t have gas at home but I do have electricity (yes even in mid Norfolk LOL) and I also have an electrical safety certificate dated just a few months ago for my own home. Safety laws should be applied to ALL property owners

If proposed new regulations for electrical testing in residential properties comes about then I hope they are imposed on all property owners and not just landlords.

Laws need to be applied equally.

If the lawmakers don’t care about the safety of children living with irresponsible parents who don’t get their homes checked for gas and now electricity then why do they care so much about tenants living in rental properties?

How many homeowners get an annual gas safety check?

Why shouldn’t owner occupiers be made legally responsible for protecting the lives of their children, neighbours, emergency services who try to rescue them when their house explodes in a ball of flames and of course their own lives?

What’s good for the goose ….

What are your thoughts?


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


Good feedback for Landlords from Tenants reported by NLA Landlord News, Latest Articles, NLA - National Landlords Association

The majority of tenants say their rent provides good value for money, according to the National Landlords Association’s NLA latest research findings*.

More than seven in 10 tenants (73 per cent) rated their rent as ‘good’ or ‘very good’ when asked their opinion on whether it represented value for money. One in five (20 per cent) perceived their rent as ‘poor’ value, while just three per cent rated it as ‘very poor’.

The findings also show that the majority of landlords haven’t increased rents in the last 12 months, with three quarters of tenants reporting they’re paying the same rent (72 per cent) or a lesser amount (3 per cent) compared with a year ago.

In total, 85 per cent of tenants said they were happy with the length of their most recent tenancy agreement and four in five (79 per cent) said that their tenancy was either renewed or continued on to a rolling Statutory Periodic Tenancy (SPT) at the end of the previous fixed term period.

When it comes to the end of the tenancy, fewer than two per cent of tenants said their landlord ended their last tenancy (1 per cent) or felt they were forced to move out because of increases to their rent (0.6 per cent). Three per cent of tenants said they decided to move on or end their last tenancy of their own accord.

Carolyn Uphill, Chairman of the NLA, said: “It’s pleasing to see that so many tenants perceive their rent as good value because landlords face a lot of unjustified criticism for the rising costs of living.

“The NLA has long argued that rent levels in the UK are a consequence of a market economy, with the determining factor at present being a chronic undersupply of affordable housing, compounded by lethargic efforts on the part of Government to foster more construction.

“On the whole the findings are encouraging for tenants: they demonstrate that rents on private lets over the past year have remained fairly stable and show that, in reality, very few feel pressured to move out or actually have their tenancy terminated by their landlord – a common misconception.

“However, most important of all the findings suggest that the majority of landlords are in the business of providing good quality, affordable homes and are making sustainable tenancies a mainstay of most tenants’ rental experience”.

*NLA Tenant Panel research, October 2013 – 550 online respondents.feedback


200 Housing benefits tenants are served section 21 notice by Kent Landlord Landlord News, Latest Articles

Kent based Landlord Mr Fergus Wilson reported to the press that he has served section 21 notices to more than 200 tenants on housing benefits asking them to leave after six months.

Mr Wilson has a portfolio of over 1000 properties and has decided not to rent in the future to tenants claiming housing benefit preferring instead tenants from Eastern Europe who he says are more likely to pay their rent on time.

Mr Wilson said, “this decision is only down to money it has nothing to do with the personalities involved.

“When it comes to money over half of people on benefits were defaulting on their rent, and when it comes to people who are working, we’ve not had one single person default on one single penny. You can appreciate why. Rents are going up in line with the price of houses and housing benefit levels are dropping at the same time.

“Tenants from eastern Europe, places like Poland, have been here a number of years now and have built up a good enough credit rating to rent privately. We won’t see the impact of more recent migration for years to come, but people on benefits are having to compete with them.

“My message to people is get yourself a job, and you will get yourself a house.”

Mr Wilson also added “The problem is that you have a finite number of houses, but more people wanting to rent them than places are available. With that pressure, what tends to give is the poorest people at the bottom of the economic pile.

“We are going to be in a position in the next 20 years where it becomes more and more difficult for people to find housing, and no one seems to have an answer. You tell people in a place like Ashford that they need more housing and they’re likely to lynch you they are sick of being built on, but it’s a fact.”

The NLA has also released a statement regarding this story in the press:

Chief Executive Officer, Richard Lambert said, “our current research shows we’re seeing more and more landlords moving away from renting to tenants claiming benefits.

“It was widely assumed that rent rises were fueled by housing benefit, and that if benefit rates were reduced, rents would fall back to meet them. That’s been shown to be a completely false assumption. There are many wider factors affecting rent levels, principally the availability of properties and the number of people looking to rent.

“As the Welfare Reform agenda has progressed over the past three years, benefit levels haven’t kept up with rents, meaning it’s a greater risk for landlords renting to tenants who rely on benefits, which is why they are looking more and more to working tenants who don’t tend to fall into arrears that easily. The fact is that there are many more working tenants looking to rent because it is still so difficult for first-time buyers to get onto the housing ladder. “However, we know of many landlords who have rented to housing benefit tenants on for many years and have never had a problem, so our advice would be to always look at every tenant on an individual basis.

“Being a landlord is a business and there are landlords who specialise in letting in the housing benefit market. They tend to be the more experienced landlords with larger portfolios, who understand how to manage tenancies to ensure stability and minimise the risk of arrears.”

The following interview with Fergus Wilson appears courtesy of Property Tribes

No sign


Paying rent late will hit credit score Latest Articles

Of interest, I think, to fellow landlords; Experian expects to include 600,000 rental records by year-end of tenants who pay late, starting with social housing and expanding to all private rentals. Lenders will have access to the information next year. Paying rent late will hit credit score

Tenants who get a black mark will could ruin their chances of securing a mortgage, credit card or being accepted by their next landlord. Missed payments will damage a credit score, regular payments will improve it ……


HMO Question – are basins in bedrooms mandatory? Latest Articles, UK Property Forum for Buy to Let Landlords

Is it a legal requirement that every bedroom in a licensable HMO has to have a wash hand basin?

I have been jumping through hoops for a year to try and get a licence on a three storey 6-bed HMO. I had a letter from the council in 2011 saying that as I had three bathrooms and two separate WCs, all with wash hand basins, I didn’t have to put basins in the bedrooms, but would have to when I re-licensed in five years time. HMO - Bedrooms with basins mandatory?

I have now been given a draft of a licence to check which requires me to put basins in within two months.

Thanks

Edna

 


Letting Agent won’t release rent (6 months paid in advance) Latest Articles, Letting, Lettings & Management, UK Property Forum for Buy to Let Landlords

My tenants have paid 6 month rent in advance ( as they did in the previous 6 months with no problems) due to them being students.

The Letting Agent is dragging its feet and will not release the 6 months rent to my bank account stating the tenants have to sign a form allowing this to happen. Letting Agent won't release rent

Previously there was no mention of the tenants having to sign a form.

Tenants have been in my property since 18th October and I have not received any rent payment, I have had many conversations with staff at my letting agents and they keep fobbing me off.

I am unsure as to what to do next, what would you do?

Thanks

Michelle


HMO Internal locks ‘deal breaker’? Advice, Latest Articles, UK Property Forum for Buy to Let Landlords

I’m at the point of exchange on an HMO licensed 5 bed house, currently let to students. I received a letter from the mortgage lender Birmingham Midshires (BM Solutions) saying one of their conditions is that there are ‘no internal door locks’. I checked and there are thumb locks on all the bedrooms. The letting agent who manages the house asked the students about removing them, they refused. BM Solutions logo

I’ve heard stories about BM Solutions withdrawing the offer after exchange, and apparently there will be 5 days between exchange and completion. I can’t risk losing 20% of my deposit if they discover there are still internal locks. What should I do? Is this really a deal breaker?

Apparently it’s only 1 of the students that has a problem with the locks being removed, but as I don’t yet own the house I can’t speak to her directly and can’t change the contract, everything is dealt with by the letting agent.

Has anyone else come up against this one? Should I risk it and tell the mortgage lender that I did request the locks to be removed (if they ask)? Or should I actually pull out now before it’s too late?

Any advice much appreciated.

Regards

Duncan


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