Covid-19 Bounce Back loans for property businesses16:06 PM, 5th May 2020
About 3 weeks ago 46
I am going to keep it simple I have written two articles with full details but here is the short version including TWO NEW WARNINGS
“Over 8,000 deposit repayments valuing almost £5 million are waiting for the response of the lead tenant before the deposit can be repaid”.
I don’t imagine that these tenants expected their deposits to be returned, otherwise I would have thought that they would be chasing DPS and it is fairly safe to assume that much of this money is due to landlords.
One of the mistakes often made by landlords who let to students is to give the DPS the students’ university email address which is closed when the student graduates.
Last week I received a call from a landlord who has 150 deposits protected with one of the insured schemes. During a dispute it became known to the scheme that the deposit in question was protected in the name of the landlord’s son after they had spot checked at Land Registry! The scheme has said that this deposit protection is invalid. It appears that many of this landlord’s deposits were protected in his sons name and now they must be newly protected before midnight on 5th April otherwise they will fall foul of the legislative changes. Ouch!
There are many potholes in the road for landlords, but tenants deposit protection is about to become a minefield and I hope you will forgive me for banging on. I will only post further warnings if I become aware of new issues.
The articles where more details can be found are here
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