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Updated List of Landlord Laws You Need To Follow

Being a landlord is brilliant, owning high yielding properties, the day to day management of your properties, liaising with tenants, dealing with their issues, often having to take on responsibilities of housing providers and social workers as you help your tenants to budget their money to ensure next month’s rent comes rolling in… But it’s not all fun and roses. Have you considered all the laws you have to be aware of?

Last year, we released an article detailing more than 125 laws you need to be aware of as a landlord if you’re letting property in the United Kingdom and property managers and letting agents need to be aware of these too! Not being aware or deliberately ignoring the existence of these laws can lead to lengthy prison sentences, hefty fines or banning orders preventing you from continuing your activities as a landlord! New laws even ban landlords in breach of certain legislation from using Section 21 to evict your tenant.

So, what’s the big idea? Why are we releasing another article? Well, quite simply, there is even more laws you need to be aware of! And the penalties for non-compliance are even bigger! With the changes to mortgage interest rate relief, the Tenant Fees Act 2019, Minimum Energy Efficiency Standards, Fitness for Human Habitation 2018 and the anticipated Mandatory Electrical Safety Testing Bill making Electrical Installation Conditional Reports a legal requirement and the Private Landlord Registration Bill. Below, is an extensive list of laws residential landlords (excluding HMO landlords) need to be aware of;

Going into 2019, landlords will also want to be aware of the following:

As landlords can imagine, there are a lot of rules to bear in mind and tenants aren’t dumb. Over the years, tenants have become more professionalised within the sector to a point where they can be reasonably expected to hold their landlord or letting agent to account. This is why, for landlords in Leicester and Leicester letting agents like ourselves, we have to be careful and undertake regular training and educational activities to keep on top of the legislative changes and to learn new ways to protect our bottom line.

It’s important landlords in 2019 aren’t falling foul of the law. It’s become clear that the Government intends to professionalise the sector and rightfully so, this means the government are trying to force Sole-Trader landlords out of the equation and encourage landlords to form limited companies, which is something we can help you to do, there will be costs associated with this including Capital Gains Tax and Stamp Duty Land Tax which are other laws you need to be aware of as a property investor.

One way to avoid falling foul of these more than 150+ laws is to instruct Andrew Hill to manage your property who will keep you regularly updated with changing landlord and housing legislation. We pride ourselves on maximising our client’s return on investment and protecting your bottom line; through our Fair Fee Guarantee, we only generate profit when you’re achieving an income!

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Selling Guide: How to sell your house

Helens Road detatched property for sale

Selling your home is easier than you think. It’s a relatively simple process and exchange and completion should happen generally quickly. Anything longer than eight weeks to complete is a really long time and you might consider finding an alternative conveyancer; it’s worth pointing out that property transactions can be complex and the more complex a transaction is, the longer it may take. The 8-week guideline should only be applied to simple transactions; our properties generally complete in as little as four weeks.

Establishing Your Property’s Value

Start by choosing three agents to value your property. An agent’s valuation should be supported by details of other properties recently sold in the same area.

A helpful insight is to also view a selection of similar properties currently for sale that compete with you. By evaluating this information and in addition, analysing selling times, the agents should be able to give you a credible and accurate valuation.

Viewings

You’ve chosen your estate agent, decided on your price and now it’s time for viewings. Presenting your property in the best possible light is essential and an area where you’ll have to be proactive.  It’s vital that your home is clean, tidy and even smells nice. It’s a person’s natural senses that will heavily influence their decision to buy, so play to it. Your agent should give you clear and proven advice on how to present your property in the best possible light – also known as ‘staging’. It is through viewing the property that we can really sell the property and maximise it’s value.

Making an offer

Viewings will lead to offers and your estate agent should be able to break them down into detail.

Knowing your potential buyers’ circumstances is hugely beneficial in making an informed decision.

Your agent should be able to report to you, what a buyer’s mortgage status is, whether they are in a chain, and whether surveys have been undertaken for other properties within that chain and the associated estate agents. Additional information such as the source of a buyer’s mortgage and establishing how many properties in the chain have been sold is also of vital importance. Your agent can then use solid experience to advise on what is realistically the best offer.

Signing a contract

Once all parties in the chain have received their mortgage offers and all solicitor’s questions have been answered, you would normally be asked to visit your solicitor to sign the contract. It’s at this point that you should check whether there is any extra deposit you need to put into your solicitor’s fund about the property you may be buying. Although wise to do all of this in person, it is acceptable to do this through the post.

Exchanging contracts

All parties in the chain have now lodged their deposits and signed contracts and this is the stage at which the contracts can be exchanged. The act of signing your contract and returning it to your solicitors does not commit you to an exchange of contracts; that only happens when your solicitor dispatches your signed contract to the other party’s solicitor. It is also at this point that you will want to make a note of your new property’s utility readings and alarm codes.

Approaching Completion

Completion is approximately one week after the exchange. The timescales are negotiable and have to be agreed by all parties at the point of exchange. Completion times can vary, 14 days is common, 21 days is not unusual but a more lengthy delay than 21 days can be negotiated, but is rare.

Completion Date

On the completion date, keys are handed over when monies are received by each solicitor in the chain via their banks. So the first property in the chain may complete at 11 am; that money is transferred up to the next property in the chain which completes at noon and so it goes on until the chain is complete. Your agent will inform you in advance of the correct times and procedures in handing over the keys.

Congratulations!

Remember, a good estate agent is there to make this whole process run as smoothly as possible. There’s no such thing as a stupid question and you must be made aware of progress as and when it takes place. The only remaining step is for your conveyance to file paperwork with the land registry and for you to receive your updated title deeds but at this point, you are now the legal owner of the property and can do with it as you please, subject to legislation and covenants, of course!

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First Time Buyers: How to Get The Help You Need

It’s a lot to take in, mortgage rates, the sales process, registering for your utilities, comparing schools… When it comes to buying your first home, you need professional advice to make sure you embark on your new adventure with the right foot forward. You want an excellent, stress-free move into your new home and that’s where we come in. We complete all the paperwork for you, dealing with lends, estate agents, solicitors, surveyors and everyone else in the process!

Home, Family and Lifestyle Protection

Protecting your family and home and helping you cope with the unexpected.

A consultation with an adviser will allow us to give you bespoke advice that is professional, knowledgeable and individual.

Insurance policies can be complex and vary according to your individual needs and personal circumstances.  As with all insurance policies, conditions and exclusions will apply.

Help to Buy

We are experienced in dealing with the various Help to Buy Schemes.

  • SHARED OWNERSHIP
  • EQUITY LOAN
  • HELP TO BUY ISA

Unsure? Speak to us and we will explain all of the options and recommend a scheme based on your circumstances.

Remortgage

Time to remortgage?

Fixed Rate coming to an end?

We specialise in comparing deals  from the whole market and can even access exclusive rates not available directly from High Street Lenders.

Once your fixed rate ends you will typically go onto a variable rate set by your lender, which may mean your mortgage payments increase.

You should think about applying for a new mortgage three months before your existing deal comes to an end.

You may have to pay an early repayment charge to your existing lender if you remortgage

Extra Borrowing

If you need the funds for a big life event additional secured borrowing might be the answer.

  • Home Improvements
  • A New Car
  • A Dream Holiday
  • Wedding

Secured Loans are arranged by Introduction Only.

Self-employed & Contractors

Getting a mortgage when you are self-employed can be challenging. You may have even already been into your bank and have been declined.

We can typically arrange a mortgage after a minimum of 12 months of trading.

It’s really important if you are self-employed to take impartial and expert advice on getting the best possible mortgage deal as lending criteria can be very different from one lender to another.

Poor Credit

Life-changing events such as divorce, redundancy and illness can sometimes cause you to miss payments on your mortgage or other financial commitments.

  • Missed or Late Payments
  • Debt Management Plan
  • Defaults or CCJ’s
  • IVA’S

Many of the high street lenders will not allow for impaired credit and concentrate only on those borrowers that are showing a perfect credit score.

We specialise in helping people with less-than-perfect credit scores.  With this experience, we should be able to point you in the right direction when it comes to matching you with a lender.

Guide to buying your first home

Calculate how much you can afford

Speak to a financial advisor, he will tell you what deposit is required (normally between 10-25%) and give you an idea of what your monthly mortgage repayments will be. You can use our mortgage calculator to help you.

Please take into consideration, stamp duty, conveyancing / solicitor costs and removals.

Secure a mortgage agreement in principle

Agree on an upper limit for your loan from your preferred Mortgage provider, this documentation will be required from your Estate Agency in order to prove to the vendor that you are a serious buyer.

Find Your dream home

Start house hunting and viewing as many properties within your budget and requirements as you can see. Go back and view any properties that you like again or bring a friend / relative for a second opinion.

Make your offer

Your Estate Agent will negotiate, acting as a go-between you and the seller. Once you have agreed on a final price for the property you can start the buying process.

Instruct your solicitor

It normally helps if you can be recommended to a good solicitor, ask your Estate Agent who they would suggest, they should have a recommended list of firms that they deal with regularly that will offer you a good service.

Survey and loan valuation

For your Estate Agent and the vendor to consider your offer seriously you should book your survey as soon as possible. Your mortgage lender will now assess if the property is worth what you have offered to pay for it.

Finalise your mortgage

Once the relevant searches, land and building surveys have been carried out to the satisfaction of your lender and solicitor. Your mortgage company will confirm that your application can proceed and issue you with a confirmed offer.

Exchange Contracts

Your solicitor will contact you to confirm your deposit money, you will need to transfer this amount to your solicitor, this acts as a binding agreement between you and the seller. At this point, you should also get a quote for buildings and contents insurance.

Finalise Your Contracts

A completion date will have been negotiated between your solicitor and the sellers. Make sure your mortgage lender is ready to release funds in advance of your completion date. Once funds have cleared your solicitor will confirm that deeds have been transferred and your purchase is complete!

Move In

This is the moment you have been waiting for! Andrew Hill Estate Agents wish you the very best of luck.