The tenant may be able to delay possession proceedings if for example:

1. The court paperwork produced by the landlord is defective.

• The landlord has served the tenant with a possession notice which is not correct either because the information on it is incorrect or the wrong form has been used or the notice has a ground for possession written on it and the landlord relies on a different ground at court.
• However, since the Housing Act 1996 came into force courts now have a "discretion" to allow possession, even if the landlord did not serve a proper notice of possession. So this argument may not always help the tenant.
• The landlord started court proceedings earlier than they were allowed to by law.
• The tenant did not receive any notice of possession from the landlord before they started proceedings.

Remember the court can decide to make a possession order even if the landlord did not serve the tenant with a notice beforehand. The tenant may still however be able to argue that it would be unfair for him to be evicted without notice.

2. Where the landlord is seeking arrears of rent the tenant may be able to avoid paying some or all of this if the landlord owes the tenant money. For example, the tenant has overpaid the rent previously and not received a refund. The tenant can counter-sue the landlord, (this is called a Counterclaim). If the tenant wins their claim will be "set-off" against what they owe the landlord. This will not however save the tenant from a possession order.

3. The landlord has not proved the ground they are relying on.

4. A condition has not been satisfied. For example, the landlord has not shown it is reasonable for the court to make a possession order in the case of grounds 9-17.

5. The tenant should be given another chance and the court proceedings should be put back to allow the tenant to comply with a part of their tenancy agreement that has been breached. For example, failure to pay rent. Or that the possession order should be "suspended" so that it only comes into effect if the tenant breaks a stated promise or agreement with their landlord.

6. Tenants with good council have been able to delay repossession citing the property has dilapidations. Landlords need to be aware of this one as it can be used as a method to delay possession by weeks.

It is vital that every landlord ensures that any prospective tenants are carefully checked to ensure they are suitable. You will never guarantee that a tenant that comes up okay after background checks will not pay their rent late or damage the property etc, but what you can do is mitigate the risk of this happening by doing some basic up front work that will give you greater assurance that they will be decent tenants.

Initial Phone call to View the Property
At this stage you have an opportunity to weed out vital information to ensure its worth organising a viewing. Check that they fulfil any criteria stated in the advert. i.e. if your advert says “No DSS” ask the applicant directly if they are claiming benefit. If you are looking for a particular type of tenant for example a 2nd or 3rd year student in a HMO, now is the time to check they are not a party hungry fresher who will disrupt the household and cause you problems down the line.

If you have doubts or feel based on what they have told you, they may not be who you are looking for, don’t take things further, move on to the next call. You won’t be able to run through the tenant check form over the form, but a few basic questions to ascertain if they may be a good prospect is worth doing at this stage.

Property Viewings
Always ask the prospective tenant to ring you 1 hour before the viewing to confirm they will be turning up. This way you will mitigate the risk of a wasted journey.

Record the details of all the people who turn up including name, address and telephone number. Keep basic property security details to yourself. If you are a female landlord and will be at the property on your own with a tenant, call a friend or partner as they arrive saying that you are at the property (state the address) with a Mr Jones and will be back in 15 minutes.

As you are showing the house try and slip in additional questions into the conversation: “where are you living at the moment”, “where do you work”, “Are you looking just for yourself or with a friend or partner” etc. Make notes after the viewing and compare these to the completed application form when it arrives.


Tenant Application Form
It is vital that landlords ensure their prospective tenants complete a tenant application form. These can be obtained free of charge from www.landlordnetwork.co.uk and from many other sources. The form will request the following basic information from the prospective tenant:

• Name and address
• Previous addresses if lived at current for less than 3 years
• Date of birth
• Occupation and employers details
• Joint tenant details
• Details of any criminal convictions, County Court Judgements (CCJs)
• Bank details
• Character reference details
• National Insurance number
• Guarantor details
• Proof of identification.
• Request for 3 months bank statements
• Previous landlord details (not current)

Hand this form out to the tenant after the viewing and ask them to get it back to you by return of post.

Tenant Checking
You may find that having given out a tenant application form to a prospective tenant that you don’t hear from them again. Of course this may be due to the fact that they have found another property, but it could also be that they have looked through the application form and realised they may not get through the checking process. If this is the case, then this is a good result not a bad one.

On receipt of the form, look through it and check for inconsistencies and conflicting statements. Call the employer to check they are actually working for that company. Check they are an actual employer rather than their mate who has agreed to vouch for them. Take a look at their web-site or yellow pages add. Always ask to see 3 months bank statements, this will give you the assurance that they can afford the rent. If they refuse, walk away. Bank details are useful if you need to track ex-tenants down in the future. Ring up their previous landlord. Don’t contact their current landlord, he may say anything to get rid of his tenant, call the one before this, he will give you a better picture of this persons credibility as a good tenant.

At this stage you may feel that you have enough of an assurance that the applicant is a good bet and you are prepared to run with what you have without any further checks. If you wish to carry out additional checks you may consider using a reference agency. There is a cost for this between £30 and £50 or more depending on how far you want to go. Some checking agents have their own forms so make sure you use these for the applicant to fill out. Some reference checking agents provide their services directly to letting agents rather than private landlords. The following organisations currently provide a service to both agents and private landlords:

• Leaseguard Ltd www.leaseguard.co.uk 

• Experian Tenant Verifier www.tenantverifier.com

• Paragon www.paragonadvance.com

Even after extensive tenant checking, employers references and credit searches you may end up with a bad tenant. This is luckily quite rare, but none the less is the nature of the game with property letting. Follow the rules laid out above, be thorough and don’t cut corners just to get a tenant in quickly.

Landlords that fail to find good tenants end up learning very quickly that property letting can be a very expensive and stressful experience. There are many cases where a landlord finds himself with the tenant from hell and ends up spending thousands of pounds gaining possession of the property. Luckily, although these cases seem to grab the headlines they are not the norm. The key to landlords minimising the risk of gaining a bad tenant is to undertake the required level of assurance in advance of signing the Assured Shorthold Tenancy (AST). This can take the form of background checks, employer and ex-landlord references and provision of bank statements as proof of affordability.

Using a Letting Agent
Letting agents can either provide a tenant finding service, rent collection or a full management service. Rates can vary, but typically expect to pay half the first months rent for a tenant finding only service and between 10% – 15% for a full management service.

Be aware that just because the agent undertakes background checks it doesn’t mean that you can sit back with the assurance that they will provide you with a good tenant. You must always satisfy yourself that the required level of checks have been done and if needs be, undertake further checks yourself or get the agent to do these and provide evidence that they have been done.

Advertising in the Local Paper
Advertising in the local paper can be a good source of prospective tenants but it can yield a wide mix of enquiries that need sifting to get to the serious prospects.

• Be specific. If you don’t want DSS then say so in your advert. If you only want a short term let then ensure the advert makes this clear.

• Highlight the best house attributes in the advert. If it has a huge kitchen then say so. If it has double bedrooms add this in the advert.

• Keep your rental levels competitive. If you are higher than market levels justify it in your advert.

• Plan for your calls. Hopefully the phone will ring on the day of the advert, make sure you are prepared. Have a pen and notepad ready together with a list of questions that will sort out the wheat from the chaff. Remember, you may have to get in your car and travel a number of miles to get to the property for a viewing – try and mitigate the risk of the viewing being a waste of your time by asking the right questions. Take down their name and contact details. Always ask for them to ring you 1 hour before the appointment to confirm they will be there.


Registering with University Accommodation Office
If your property is within a student area and complies with the relevant HMO Regulations, you could register it with the university accommodation office. These bodies exist to find accommodation for students taking up courses for the next academic year. Although it depends on the location and available Halls of Residence, it is normally 2nd and 3rd year students who are looking for accommodation. The Accommodation Office will register your details, specification of property and rental levels. Some universities will insist on a capping of the rent at a certain level so look out for this. You will normally have to provide CORGI landlord certificates for your property before being registered on their database.

Internet Advertising
More and more people are using the web to look for property. Be prepared for this. Take internal photos of the property, if you have a web site post these on the site and reference the url in your paper advert. There are a number of good sites out there some free some fee based. The following are currently free:

www.propertylocator.co.uk
www.rentamatic.co.uk
www.propertydatabase.co.uk
www.easylet.co.uk
www.accommodation.com
www.flats-for-rent.com
www.simplyrent.co.uk
www.homes2rent.net
www.letsdirect.co.uk
www.residentialrentals.co.uk
www.torent.co.uk

 In addition to the above, there are a number of fee paying sites where you can advertise for a number of weeks for a fixed fee. Do your research first, put in search details for your particular location and check if they have any properties on their database. If they don’t, it will be unlikely that prospective tenants in your area will be looking at this site.


“To Let” Boards
These can work well if your property is in a good commuter route or on a main road with lots of passing traffic. Passers-by who are not looking themselves may tell their friends and family who are looking to rent.

Local Shops
Depending on the location of your rental property, a card in a window of a busy newsagent can work well. It is likely to only cost a few pounds for a number of weeks and could bring results. Ensure you try and make your card stand out from the crowd. Consider paying a little extra and posting a bigger card to get that extra focus. If your property is in an area where there is a good influx of Eastern European people who have come to the UK to look for work, try and find a local shop where they buy their food. Some towns have specific Polish shops that stock imported provisions, these can be a good place to advertise.

Housing Associations
Many Housing Associations look after their own stock of properties only but some actively look to the private rented sector to add to their available properties. You need to be aware of what social sector they specialise in and to feel comfortable with the types of prospective tenants and required regulations. The advantages can be a reduced level of void periods and a low hassle tenancy.

HMOs can be a great way to increase rental yields but you need to be prepared for the additional work to comply with the recent regulations and be fully aware of your obligations as a landlord under the HMO licensing rules.

HMO License Process
The process will vary depending on the local authority where the property is situated but the process should be basically the same.

Step 1: Contact your local council ask which department deals with HMOs and ascertain if your property comes under the mandatory or additional licensing schemes. It’s normally the Environmental Health department that deals with HMOs but in some authorities it may be under the Housing section. Ask for a HMO license application pack. Ascertain if your property is classed as a HMO and comes under the authorities mandatory or additional licensing scheme.

Step 2: Complete the application forms. The forms are quite thorough and you are expected to provide plenty of detail on the property including:

• Size and number of bedrooms.
• Amenity spaces.
• Information on no of floors at the property.
• No of bathrooms and toilets.
• Drawings (not to scale) on the layout of each floor of the property.
• Information on existing fire prevention and warning systems.

Step 3: HMO Inspection. The HMO inspector from the local authority will meet you at the property and go through all relevant areas of the house outlining what will be required to bring the property up to the required standards. It’s worth making detailed notes at this stage in that it could be a few weeks before you receive the formal list of works in the post. At least with a few notes you can give your carpenter/builder a heads up on the works required. You will be given a fixed period to undertake the works. This is normally based on the amount of work required and the authorities assessment of the risks on this type of property.

Step 4: Undertake the works. Obviously you would have needed to have lined up your tradesman once you know what works are required. In terms of trades required it is normally carpentry, electrics, plumbing, painting and decoration. Larger HMOs may need additional fire escape works on the exterior of the building to comply with any regulations in this area.

The main drivers for the HMO works is the provision of suitable fire precautionary facilities and equipment to protect the lives of the tenants. This is mainly based on a UK wide risk assessment of the types of property that could lead to the greatest risk of danger and the types of precautions required.

Don’t ever try and undertake the required HMO works on the cheap with a contractor who does not have the required skills and experience. It will end up costing you a lot more in the long run with an endless list of fixes to sort out. Choose your tradesmen carefully. Ask the local authority for a list of tradesmen on their database who have carried out HMO works to the required standard. They should be happy to provide you with the list but will not go as far as recommending any particular firm.

Step 5: HMO Works Inspection. An HMO enforcement inspector will be assigned to your property who will check that the works have been carried out to the required standards. They will normally be very thorough testing fire door closures, operating of smoke detectors, emergency lighting and L2 alarms. At the end of the inspection you will get a list of snaggings that must be completed within a fixed timescale. Hopefully if you have chosen your tradesmen well, these should be quite minor.

Step 6: Granting of the HMO License. If the enforcement officer is satisfied that the works have been carried out to the required standard, you will be issued with a license. This will normally be for 5 years. The landlord is issued with the license not the property. If the property changes hands the authority has the right to enforce the latest regulations with a new landlord.

HMO Works Details
The following notes should serve as a guide only. You will need to liaise directly with your local authority to get a full schedule of works for your HMO specific to the their interpretation of the licensing regulations.

The main principles behind the works are based on the provision of a protected escape route in the event of a fire and the provision of fire warning systems. A combination of these two provisions aims to reduce the risks of fire starting and spreading throughout the property and so minimising the risk to the health and safety of the occupants from fire.

Means of Escape – The Protected Route
Means of escape is the provision of a “Protected Route” within the dwelling to enable occupiers to exit the property to a place of safety in the event of a fire. In most cases, this does not mean the provision of an external fire escape.

The protected route usually includes the staircase and internal hallways. This will provide a safe route out of the house if it is enclosed by fire resisting construction. This will ensure that in the event of a fire the protected route remains free from smoke and flames long enough (usually a minimum of 30 minutes) to allow the occupants to leave the house safely.

Generally all habitable rooms e.g. bedrooms, living rooms, must have direct access onto the protected route. All doors leading onto the protected route must be fire resistant and fitted to a high standard.

Horizontal and vertical fire resistant separation between individual rooms and between floors is also necessary as part of the means of escape. The staircase itself forms part of the escape route and therefore, must be protected. The underside of the staircase or soffits must have full half hour fire resistance. This means that any under-stairs cupboards must be kept empty and locked or sealed permanently. This will mean replacing the existing spandrel area with fire proof material (plasterboard and skim) and the relocation of any gas or electric meters.

The works are likely to include:

1. Smoke detection system or fully automatic L2 type system (3 or more storeys). Detectors need to mains wired with battery backup and installed in all habitable rooms (excluding bathrooms or toilets) with a heat detector in the kitchen.

2. Full half hour fire resistance doors to all rooms leading onto the hall, stairs and landing (escape route). This will include doors to bathrooms containing any boilers or airing cupboards and doors to the under-stairs area. Also any cupboards sited on the escape route will need to have fire doors fitted.

3. Loft hatches will need to be upgraded to provide half hour fire resistance and locked with a bolt each side to secure them shut.

4. Ceilings. The ceilings on each floor will need to provide half hour fire resistance using 12.5mm plasterboard and a 3mm gypsum plaster skim. This will include the hall, bedrooms, kitchen, communal room, landings and bedrooms. If the property is an old Victorian house and has the old lath and plaster ceilings, these need either to come down or be boarded over with chicken wire battens and plasterboard plus skim. This is a messy job so protect the room contents. Artex ceilings do not provide half hour resistance and will need to be skimmed to provide the correct level of fire resistance. If the ceilings look smooth, they may have been boarded and skimmed in the past. If the ceilings have been plaster-boarded but are cracked and boarded they will need to be upgraded. This is required to provide the required fire resistance between one floor and the next.

5. Plywood Boarding. The first and second floors will require boarding under the carpet to provide the required half hour resistance. You can use 6mm hardboard or plywood. Some authorities may allow you to lay laminate flooring (click flooring) in place of boarding. This will negate laying carpet down after the works are complete.

6. Partitions and walls. Most solid walls will provide a full half hour fire resistance. Any partition walls must be constructed to a minimum standard to provide 30 minutes fire resistance.

7. Fire Fighting Equipment. 1 x 9 litre water extinguisher to be sited on each landing (and hallway) and 1 2.27kg dry powder plus a fire blanket to be sited in each kitchen.

8. Fire Warning System. For a 3 or more storey property, you will need to install an L2 type fire detection system. This is a fully interlinked system with an alarm panel with break glass points and interlinked smoke alarms. The system must comply with BS5839 part 6 and must be fitted by an NICEIC/ECA approved contractor. Smaller HMOs that fall under additional licensing may not need an L2 system but will still require mains wired interconnected smoke alarms and heat detectors.

9. Signs and Notices. Directional signs must be erected at appropriate locations to highlight escape routes and information type signs e.g. “Fire Door Keep Shut” etc.

10. Amenity Standards Bathrooms.

There are requirements on landlords to provide an acceptable standard of amenities. These cover size of bedrooms and kitchens together with toilets and kitchen appliances. They are based on the no of occupants and size of property.

Definitions:
- Bathroom – means a room with a bath or a shower
- Full Bathroom – means a room containing a bath or a shower, WC and wash hand basin.

Minimum Standards

No of Persons Amenity Requirement

1 – 4 Persons
1 Full Bathroom containing a bath or shower, wash hand basin and WC

5 Persons

1 Full Bathroom containing a bath or shower
AND
1 separate WC: with wash hand basin.
(OR a second bathroom which contains a WC)

6 – 10 Persons

2 bathrooms: each containing a bath or a shower
AND
At least 2 WC’s: one of which must be separate and contain a wash hand basin. The second may be contained within one of the bathrooms.


• All baths showers and wash-hand basins must have taps providing an adequate supply of cold and constant hot water.
• All bathrooms must be suitably and adequately heated and ventilated e.g. radiator, ventilation in the form of an openable window of adequate size and/or mechanical ventilation having an overrun device.
• All bathrooms and toilets must be of adequate size and layout to be safe to use (HHSRS requirement)
• All baths, toilets, wash hand basins and showers must be “fit for purpose” i.e. in good repair, safe to use and capable of being easily cleaned.
• All showers, baths and wash hand basins to have suitable splash-backs.
• All bathrooms and toilets must be suitably located within the house.

11. Amenity Standards Kitchens

Unless the unit of accommodation, i.e. bedroom, bedsit, self contained flat etc, contains facilities for cooking of food, then kitchen facilities must be provided.

Kitchen Size: There must be a kitchen of suitable size and layout having such facilities to enable those sharing it to store, prepare and cook food. Generally the size of kitchens is to be as follows:

• Kitchens used by 1 – 5 persons – minimum is 7m sq
• Kitchens used by 6 – 10 persons – minimum is 10.5 sq

Equipment: The kitchen must have the following equipment that must be fit for purpose and supplied in sufficient quantity for the number of those sharing the facilities:

Equipment Requirement

Sink Units (with draining board)
Used by 1 - 5 persons

 1 sink unit

Used by 6 – 10 persons

 2 sink units (or double bowl sink/drainer). Each sink must have an adequate supply of cold and constant hot water with a splash-back.

Cooker (full size)
i.e. 4 ring hob plus oven.
Used by 1 – 5 persons

 1 full size cooker

Used by 6 – 10 persons
 2 full size cookers or a 6 ring hob and single oven plus a microwave (of minimum size 1 cu ft 800 watts)


Fridges
Used by 1 – 5 persons

1 x (0.13 m3)/3.5 cu feet

Used by 6 – 10 persons

2 x (0.13 m3)/3.5 cu feet


Freezers
To be provided in addition to fridges in the same ratio and size if no freezer compartment within the fridge. Ice boxes cannot be counted as a freezer compartment.

Storage Cupboards
1x500mm std base/wall unit per occupier. Cupboards below sink units will not be counted as food/utensil cupboards.

Worksurfaces
Minimum size 1m x 0.6m. Must have a splashback. Worksurface of at least 500mm must be sited adjacent to each cooker.

Electrical Sockets
It is recommended that as a minimum 3 double sockets are provided in each kitchen adjacent to work surfaces in addition to the cooker socket.

Refuse Disposal
Must provide a suitable receptacle in kitchen for waste.

Extractor Fans
To be fitted where appropriate.


HMO Conversion Tips
The following may be of use to you as you spec-out and undertake the required works:

• If you are not sure if the ceiling has been boarded in the past, unscrew one of the light fittings and check the ceiling hole. You will easily see whether the ceiling has been boarded or not.

• Depending on how new your existing carpets are - Consider laminate (click) flooring on the first and 2nd floors instead of carpet. This will comply with the HMO regs re half hour resistance to the floor and save you the expense and time of laying carpet.

• The amenity standards now mean that you will need an additional toilet even for 5 householders. In some Victorian properties this can be quite difficult. Look at the possibility of stealing enough room from a ground floor bedroom to provide a small toilet. You will need to see how the waste can be extracted from the new toilet, so an outside wall or near to an outside wall makes life easier. Don’t forget you will need a wash hand basin and radiator plus fan. If your existing bathroom is quite large you could consider a partition with a suitable door and lock to separate the bath/shower from the toilet. This would then comply with the regulations.

• If you have a requirement for 6 or more householders and do not have room for a 2nd cooker, you could install a 2 ring (or more) worktop hob adjacent to the existing cooker. Ensure you have the space within the existing cupboard for the fittings and can spur off the existing electrical supply.

• Never fit the fire doors before the plasterwork has dried out. You can guarantee that if you sequence the job this way around your doors will all need repeat adjustment to close again as they will take in moisture from the drying plaster.

• Pulling down old lathe and plaster ceilings is a messy business, you may be better off batoning the existing ceiling (need to fix chicken wire to underside of old lathe and plaster before boarding) and boarding on top.

• Don’t bother with hardboard to the first and 2nd floors, it’s not hard wearing enough, use ply instead.

• Consider lifting all carpets in advance of the works and storing them somewhere clean, in that however careful your tradesmen will be, you will end up with dried plaster and mess ingrained everywhere even thought they have been covered.

• If the property is furnished, pick one room in the house move everything into that one room. Ideally, pick the room where you don’t have to undertake the least works i.e. kitchen. Alternatively, get one room plastered up front and move everything to this room afterwards.

• Go for sturdy door handles, they will take a real beating over the years.

• Think about putting up wall hooks for coats, this will avoid householders drilling into the fire doors.

• Sequence the trades carefully:

o Sort out any additional sanitary and amenity work with the plumber and electrician.
o Get your first fix electrics done (smoke alarms and heat detectors etc).
o Get the ceilings done next together with the boarding or click flooring on the 1st and 2nd floors.
o Next get the plasterer on site to skim the ceilings and under-stairs areas.
o The carpenter can now fit the fire doors and surrounds.
o You can now get the painting and decoration done.
o Get the locksmith to change the clocks both front and back for the “euro-profile” or “thumb turn” type.
o Install your fire fighting equipment and signs.
o Call in the cleaners for a “builders clean”.
o Finally get the carpets back down and re-stock all the room contents.

There are a number of different mortgage products available to the investor. The main categories of product are outlined below. Most lenders are happy to lend to individual investors in their own name or to investors buying through limited companies. Investors buying through limited companies will normally have to personally guarantee the loan and provide evidence of a board resolution (lender provides form) to secure the lending facility.

Most investors choose to buy lender financed property via interest-only mortgages. This is mainly due to the fact that interest payments can currently be offset against tax and that landlords are investing for cash-flow rather than wishing to pay the mortgage off in a short as possible timescale.

Standard Variable Rate
The Standard Variable Rate (SVR) is one where the mortgage company sets its interest rate above the Bank Base Rate. This rate can rise or fall whenever there is a change in the Bank of England's Base Rate. Lenders can be quick to react to rate increases yet slow to pass on decreases. It is usual practice for a mortgage to be transferred to the SVR at the end of any discount or fixed rate period.

Standard Variable Rate mortgages usually have no tie in period so may suit Buy to Sell investors who are purchasing with the sole intention of selling on.

Fixed Rates
A fixed rate is where the lender will fix an interest rate at a certain level for a fixed period of time. The advantage is that you can budget for 2 years or more knowing exactly what your monthly interest payments will be. The downside is the loss of flexibility and increased early repayment charges if you repay the mortgage during the period.

LIBOR Rates
Some lenders calculate interest rates at a margin the London InterBank Offered Rate (otherwise known as LIBOR). This is very similar to the Standard Variable Rate; however the lender calculates the rate every 3 months. The amount you pay will be constant for 3 months. Because of the time lag against the Bank of England Base Rate, you could benefit by having a lower rate if interest rates start to increase, however the opposite could be true if they start to fall.

During times of economic downturn, interbank lending gets more expensive as institutions are not so keen to lend on the open market.

Discounted Rates
A discount mortgage offers a reduction off the lender's standard variable or LIBOR rate. When the lender changes their rate, the interest rate will change, but it will remain at a set level below the SVR or LIBOR. A large discount will usually be for a short period followed by a further period at the SVR or LIBOR, during which time, you must stay with the lender or have to pay an early repayment charge to leave.

Capped Rates
By capping your interest rate you are effectively putting a ceiling on your interest rate but without fixing. The main advantage of a capped rate is that while the interest rate can fall it will not rise above a certain level for a fixed period of time. The maximum the capped rate can rise to is often slightly higher than fixed rates and discounted rates are often lower.

Base Rate Trackers
A tracker mortgage, literally tracks the Bank of England Base Rate. The lender guarantees to automatically match any increase or decrease that the Bank makes. The rate is set at a percentage above the Base Rate, however it is possible to combine these with discounted rates below the Base Rate (these can tie you in to a higher rate after the discount period ends). You benefit when rates fall, however when rates are increasing, a capped or fixed rate could be preferable.

Flexible
With a flexible mortgage, many lenders will allow you to make overpayments. This can be used to plan the early repayment of a mortgage. You can usually 're-draw' the overpayments when you want to which is particularly helpful when it comes to redecorating your property of for repairs.

Minimal Status/Self Certification
Just because you can't prove a high level of income doesn't mean you are a bad credit risk! Many  lenders recognise this, for example; you may have been made redundant and have sufficient capital to live off. Alternatively your partner/spouse may have a substantial income and the finance/property may be far more efficiently placed in your name for tax reasons. Another reason maybe that you are simply unable to prove (by normal means) your true income position and are far more prepared to take a view based upon the viability of the property transaction rather than the income position of the applicant.
Additionally if you are self-employed or have a non traditional income source, you may be able to self-certify your income. These sorts of products can be open to abuse and are restricted during an unfavourable economic climate.

If your loan was taken out to help you buy something (other than your property or repairs or alterations to your property), but the loan is secured as a charge against your property, the court may have greater powers when it comes to considering the question of repossession:

If the loan is not for more than £15,000 then the Consumer Credit Act says that the lender before taking any action against the mortgagee must send out what is called a "default notice".

This is a form, which must have certain information on it including how the mortgagee has breached their agreement with the lender. If the mortgagee puts right the breach then no further action will be taken by the lender.

If the mortgagee receives a "default notice" they can apply to the court for a "time order", (either before or after the lender applies for a possession order). A "time order" can state what amounts the mortgagee has to repay the lender bearing in mind their financial circumstances.

The court has a discretion and can decide how much it is fair for to repay. The court can also make the usual orders about suspension or adjournment of possession proceedings.

From 6 April 2007 (England and Wales), must be protected by a tenancy deposit protection scheme. A new law governing housing deposits has come into force affecting many thousands of property landlords, letting agents and tenants. Each year residential landlords take deposits worth about £1.2bn from tenants to secure them against damage to the rented property and contents. The new scheme is meant to give more protection to tenants by preventing landlords and letting agents from unfairly withholding a tenant’s deposit. The scheme protects all Assured Shorthold Tenancies in England and Wales (covering most tenancies since 1997).

Essentially the change will compel a landlord to hand over deposits to a third party or have an insurance scheme cover it.

Landlords will still be able to make deductions for damage but in the case of a dispute the third party or insurance company will act as the arbitrator and pay out money owed to tenants.
The landlord’s costs of insurance scheme membership and the premium may be passed on indirectly to tenants by means of increased rents. This is obviously not an intended consequence and is the unfortunate price tenants must pay in order for their deposit to be safeguarded.
Key to the success of the scheme will be the preparation and agreement of a full and detailed inventory of the property and contents at the commencement of the tenancy. It is not realistic to expect every landlord and tenant to agree and there will be plenty of work for independent inventory clerks.

What is it?
The Tenancy Deposit Protection ensures:
•  tenants get all or part of their deposit back (if they are entitled to it)
•  any disputes between tenant and landlord or agent will be easier to resolve
•  landlords and letting agents who do not protect tenancy deposits will have to pay their tenant back three times the deposit.

What is the process?
Start of a new tenancy: at the beginning of a new tenancy agreement, the tenant pays the deposit to the landlord or agent as usual.

Within 14 days the landlord or agent is required to give the tenant details about how their deposit is protected including:
• the contact details of the tenancy deposit scheme;
• the contact details of the landlord or agent;
• how to apply for the release of the deposit;
• information explaining the purpose of the deposit;
• what to do if there is a dispute about the deposit


What are Tenancy Deposit Schemes?
The schemes will allow tenants to get all or part of their deposit back (when they are entitled to it) and encourage tenants and landlords to make a clear agreement from the start on the condition of the property.

The schemes will :
• allow tenants to get all or part of their deposit back when they are entitled to it;
• make any disputes easier to resolve;
• encourage tenants and landlords to make a clear agreement from the start on the condition of the property (i.e. an agreed inventory)

There are two types of tenancy deposit protection scheme available for landlords and letting agents (insurance-based schemes and custodial schemes). All schemes provide a free dispute resolution service.

Insurance based schemes
• the tenant pays the deposit to the landlord;
• the landlord retains the deposit and pays a premium to the insurer

Within 14 days of receiving a deposit the landlord or agent must give the tenant the details about how their deposit is protected including:
• the contact details of the tenancy deposit scheme selected;
• the landlord or agent’s contact details;
• how to apply for the release of the deposit;
• information explaining the purpose of the deposit;
• what to do if there is a dispute about the deposit

The following link has more details on the costs involved.

http://www.mydeposits.co.uk/landlords/landlord-what_does_it_cost.htm

At the end of the tenancy:
• if an agreement is reached about how the deposit should be divided, the landlord or agent returns all or some of the deposit;
• if there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved;
• if for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it.

Custodial schemes
• the tenant pays the deposit to the landlord or agent;
• the landlord or agent then pays the deposit into the scheme

Within 14 days of receiving a deposit the landlord or agent must give the tenant the details about how their deposit is protected (as for insurance based schemes above) including:
• the contact details of the tenancy deposit scheme selected;
• the landlord or agent’s contact details;
• how to apply for the release of the deposit;
• information explaining the purpose of the deposit;
• what to do if there is a dispute about the deposit

At the end of the tenancy:
• if an agreement is reached about how the deposit should be divided, the scheme will return the deposit, divided in the way agreed by both parties;
• if there is a dispute, the scheme will hold the deposit until the dispute resolution service or courts decide what is fair

The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will be used to offer interest to the tenant or landlord if the tenant isn’t entitled to it.

What if the landlord is not using the scheme?
You can apply to your local county court. The court can order the landlord or agent to either repay the deposit to you or protect it in a scheme. If your landlord or agent has not protected your deposit, they will be ordered to repay three times the amount of the deposit to you.

Moving out
At the end of the tenancy, check whether you are leaving the property and its contents in the condition in which it was let to you - allowing for fair wear and tear- and check that you have paid your rent and any other expenses. Then agree with your landlord or agent how much of the deposit should be returned to you.

Within 10 days you should have received the agreed amount of the deposit.

Information for landlords
The Tenancy Deposit Scheme came into force on 6th April 2007. If you have not protected a tenant’s deposit you will be ordered to repay three times the amount to the tenant.

Why protect deposits?
Deposits are protected to ensure:
• tenants get all or part of their deposit back, when they are entitled to it;
• any disputes between tenants and landlords or agents will be easier to resolve;
• tenants are encouraged to look after the property they are renting

Who runs the schemes?
The Government has awarded contracts to three companies to run tenancy deposit protection schemes:
the Deposit Protection Service (DPS)

The DPS is the only custodial deposit protection scheme, is free to use and open to all Landlords and Letting Agents. The service is funded entirely from the interest earned from deposits held. Landlords and Letting Agents will be able to register and make transactions online. Paper forms will also be available should internet access be an issue. The scheme will be supported by a dedicated call centre and an independent dispute resolution service.

           Tenancy Deposit Solutions Ltd (TDSL)

TDSL is a partnership between the National Landlords Association and Hamilton Fraser Insurance. This insurance-based tenancy deposit protection scheme enables landlords, either directly or through agents, to hold deposits. Letting agents can also join the scheme.

         the Tenancy Deposit Scheme (TDS)

TDS is an insurance-backed deposit protection and dispute resolution scheme run by The Dispute Service that builds on a scheme established in 2003 to provide dispute resolution and complaints handling for the lettings industry. The new scheme enables letting agents and landlords to hold deposits.

Resolving disputes
If a dispute occurs and no agreements can be reached about how much of the deposit should be returned, there will be a free service, offered by the scheme protecting the deposit to help resolve any disputes – the Alternative Dispute Resolution (ADR) service.

When a dispute occurs, and if landlord and tenant both agree to use the service to resolve disputes offered by their scheme provider, they are agreeing to be bound by its decision.

A landlord or tenant does not agree to the release of full or part of the deposit so ADR will be the default way in which to resolve a dispute. If there is a dispute, the scheme will continue to hold the amount until the ADR or courts decide what is fair.

Penalties for non-compliance
Failure to protect deposits in this way will result in the landlord being forced to return the deposit to the tenant and a court can order the landlord to pay up to three times the amount of deposit if he remains in default at the date of any court order. In addition, landlords who break the rules will be unable to regain possession of their properties by the serving of a Section 21 Notice, or to enforce the terms of the tenancy agreement.


Whether you are a landlord or tenant, ensure your lease agreement sets you up for a safe scenario. Make sure the document has provisions dealing with the tenancy deposit and what should happen to it, whether or not there is a dispute. Additionally, make sure the agreement contains a comprehensive inventory, which provide for notes on the state and condition of every item. We recommend both parties sign the inventory to say they have agreed with it.

Source - www.netwlawman.co.uk

The Planning Process

Many landlords at one time or another will have to submit a planning application to their local authority. The process should be very smooth with clear communication in advance of the application/during the application process and an informed decision within 8 weeks. The reality is that planning application process is very stressful, time consuming with little communication from the planning officers resulting in a very unsatisfactory outcome.

The Process
• Complete the planning application form (can be downloaded from your local authority website or via www.planningportal.gov.uk .
• Submit your application
• Prepare a design and access statement (if new build)
• Prepare and attach a supporting argument
• Attach the correct fee and submit to the planning department
• The council will now have 8 weeks to respond to the application although often you will receive a letter stating that the department requires an extension to this timescale. It’s normally best to agree to this.
• The planning department will check the application looking for errors. Even minor errors at this stage will result in a lengthening of the 8 weeks period.
• The application will be allocated to an officer and sent out for consultation. This means that nearby residents will be formally notified of the application and invited to respond within a fixed timescale if they would like to object to the application.
• Consultation will be received and either the application goes to delegated authority (decision made by planning officer) or is “called in” to committee.
• The application will be checked against the district plan.
• A visit will be made to the site.
• A decision is made and a notice is sent out to the applicant or consultant.
• The notice may contain conditions and will be valid for 3 years.
• Some are “conditions precedent” which means that the listed conditions must be complied with in advance of any works starting.


Using Planning Consultants
If you are not familiar with the planning process or are confident that the consultant may have a better insight into how to get your application approved, using a consultant can be useful. Finding the right one is a different matter. One useful way of selecting a good consultant is to look through the online list of planning applications for your area. Look for the applications submitted by consultants, see which ones are busy and have a good success rate.

Do your Homework
You can play the planning game more successfully by doing your research. If you are submitting an application for the conversion of a house to flats for e.g. check if any properties in the road have already been converted. Are you able to create additional parking spaces? If not, can you legitimately show that you are near good public transport links or are near enough to a town? Are you in a conservation area? This will severely limit what you can do.

If your application has been called in for committee, find out who your local councillors are and check if they sit on the planning committee. If not ask them which ones do. Ask them if they will support your application at the committee. If you feel that your application may do better at committee, try and get your local councillor to call the application in. You need to check through the local objections and see if they are on genuine planning grounds. Qualify your supporting arguments.

Permitted Development
Permitted Development(PD) is the allowed development on any particular property without requiring formal planning permission from the local authority. If the property has already been converted/extended then all the allowed PD will have been used up. The PD criteria is based on the footprint/size of the house as first built or if built before 01.07.1948 as the house was at that point in time. Terraced properties are allowed up to 10% or 50m3 , semi detached and detached properties up to 15% or 70m3. Properties in London are restricted to 10% or 50m3 of PD.

You may find it better to use up your PD first then apply for planning to build the full extension. This will depend on your schedule, but it will mean you get the maximum from your development.

To formalise your PD you will need to apply to the council for a certificate of lawfulness or letter of confirmation. The council cannot stop you from developing under PD but you will need to check that the works do comply with the PD criteria.

Appealing against a Planning Decision
Unfortunately, a planning appeal can be a very slow process that will take at least 6-8 months. You may find that if the application failed on a small detail, it may be better to re-submit the application.

Be confident of your case, in that if your appeal fails it will be very hard to undertake any development on the same plot thereafter.

The appeal process entails you submitting your arguments on why the decision should be reversed. The local authority will put forward their case. Both sides can then comment on the other sides arguments. An appeal inspector from outside the local authority area will be allocated the case. He will collate the arguments from both sides and objections from interested parties. A site visit will be arranged but you will not be able to discuss the case with the inspector. 6 weeks after the site visit you will receive a decision from the inspector.

Points to emphasis at the appeal hearing:
- minimal effect on visual amenity of the surrounding properties.
- No affect in terms of privacy and natural sunlight.
- No trees will be affected.
- Proposal is in keeping with surrounding developments.
- Application should be considered under its own merits
- Suitable materials will be used.
- Emphasis the creation of additional parking if this is the case

Planning Enforcement
If a property has been converted/built for at least 4 years, then generally, no enforcement action can be taken. Change of use into a private dwelling is also subject to the 4 year rule. All other change of use falls under a 10 year rule.

If the council are informed that your development does not have planning permission, they can ask you to submit a retrospective planning application or an application for a certificate of lawful use. If the decision does not go your way the council can then issue a planning contravention notice and worst case force you to reverse the works to put the property back to its original state.

Some landlords choose to manage their properties themselves, others who may be in full time employment may not have the time to get involved in the day to day running of managing their properties. Letting agents have become common place in most high streets throughout the UK since the early 1990s. Many are linked to existing Estate Agents, the remainder are specialised agents, either locally owned and run or part of a national chain. Landlords with large portfolios of properties can find it cost effective to create their own Letting Agencies solely to manage their own housing stock.

Letting Agents Services
Letting agents can either provide a tenant finding service, rent collection or a full management service. Rates can vary, but typically expect to pay half the first months rent for a tenant finding only service and between 10% – 15% for a full management service. As with any business transaction – read the letting agency contract very carefully before signing. Make sure you are fully aware of what they should be doing and what is expected of you. Ensure you are familiar with the termination clauses if you feel you want to go elsewhere. Some letting agent contract may try and impose penalties or additional payments on termination.

Tenant Find Service: The agent will market the property, conduct the viewings, find a tenant, undertake background checks and signing of the AST. The agent will also secure a deposit and obtain the first months rent. They will deduct this from your first months rent minus any additional agent costs.

Be aware that just because the agent undertakes background checks it doesn’t mean that you can sit back with the assurance that they will provide you with a good tenant. You must always satisfy yourself that the required level of checks have been done and if needs be, undertake further checks yourself or get the agent to do these and provide evidence that they have been done.

Rent Collection Service: As in the Let Only Service, but the agent will collect the rent each month and forward onto you the balance minus the agents fees.

Fully Managed Service: The agent will undertake all the above but also manage repairs and maintenance, gas certificates and any required electrical inspections. Normally you will agree a limit up front e.g £100, up to which the agent can undertake urgent repairs on your behalf. If you have your own maintenance team you may choose to be notified of maintenance jobs and then organise this yourself. The agent should also chase up tenant arrears and guarantors.

Just because the agent is undertaking a fully managed service, it doesn’t mean you can sit back and expect the agent to sort out all the tenant and maintenance issues that crop up. It doesn’t matter how good the agent is, they will not manage the property as well as you. It is vital that you take time out to periodically inspect your properties and be fully aware of your legal/regulatory obligations.

Additional Services: Some Letting Agents may offer additional services such as mortgage advice, managed services for HMO conversion work or property renovation etc. The key point here for the landlord is: are they offering a value added service that either saves you time or money. Some agents have their own maintenance staff or firms linked directly to them. Find out if the agent is taking an additional management fee or are negotiating volume discounts with a tradesman for repeat business. Review your maintenance invoices carefully, don’t be afraid to question the agent, mistakes can happen.

Finding the Right Letting Agent
Decide what services you are looking for. This may be dependent on how busy you or how hands-on you want to be with your properties. The main pointers to finding a good agent are:

• Personal Recommendation.
Ask other landlords in the same area who they use and what feedback they can give you. You could ask to speak to a few landlords on the agents books, but they may select a few of their close friends. Talk to existing and new tenants, okay this feedback is from across the fence, but it will give you a picture of their ability to deal with tenant issues, repairs and processing of rent payments.

• Advertising
Does the agent advertise in the local paper are they active with your type of property in the right location. It’s no good signing up to a reputable Residential Letting Agency who don’t have a good knowledge of the Student market when you have student properties. Look for letting boards in the area, if the agent is successfully finding tenants in your area they will usually shout about it by sticking “Let By” on their property boards.


• Professionalism
Read their literature, is it well written. How is the office organised? Are you able to speak to the right people easily or do you have to wait until the person who can deal with your query comes back to the office. Do they have written procedures on how to deal with rent arrears or property damage etc, are these fully understood by all the relevant staff. Is the office organised and professional looking or is it an after- thought at the rear of an existing Estate Agent. Get a friend to phone up the agent pretending to be a tenant looking for exactly the property that you will be placing with them. How was the call dealt with? did they provide the right information to your requirements?

• Location and Opening Hours
Is the office located in an area where it can attract lots of potential tenants. Are they open for viewings on Saturdays and evenings? If the agent opens at 10am closes at 4pm and doesn’t open on Saturdays, is this the sort of availability that either you or your tenants are looking for?

• Contract
Letting Agents should have a contract specific to the type of service that you are looking for. The contract should set out in detail what the agent will be doing for their commission and what is expected of you as landlord. If you have a number of properties, don’t be afraid to try and structure a deal where you can negotiate a discount. Make sure you read it thoroughly. If there are clauses in it that you don’t like, ask for them to be changed. If they refuse, walk away and go to another agent.

• Fees
Some agents charge a landlord signing on or booking fee. Don’t pay it. If they will not negotiate on this, go to another agent. The agent will probably charge the tenant a booking fee, then a fee for background checks as well as a deposit/bond. Check