Landlord

notice
Tenants may now be provided with 6 months notice period. If you are a buy to let landlord you may need to give your tenants 6 months notice. Prior to seeking possession through the courts in most cases, including  section 21 evictions and rent arrears under six months, you will likely need to give 6 months notice period to your tenants to help ensure renters are protected throughout the winter. The new temporary notice period was announced in England on Saturday 29 August. It will be in place until at least 31 March.There is help for landlords affected by the worst cases to seek possession; these are: anti-social behaviour (4 weeks’ notice) domestic abuse (between 2 and 4 weeks’ notice) false statement (between 2 and 4 weeks’ notice) over 6 months’ accumulated rent arrears (4 weeks’ notice) breach of immigration rules ‘Right to Rent’ (3 months’ notice) Also, from the 20th September new agreed court rules will come into force.The new rules imply that landlord will need to included any relevant information about the effect COVID-19 had on the tenant when setting out a claim. If information is omited, judges have the power to adjoun proceedings. The housing secretary, Robert Jenrick, commented: “We have developed a package of support for renters to ensure they continue to be protected over winter. I have changed the law so that renters are protected by a six month notice period until March 2021. “No tenant will have been legally evicted for six months at the height of the pandemic as the stay on possession proceedings has been extended until 20 September. “For the most egregious cases, for example those involving anti-social behaviour or domestic abuse perpetrators, notice periods have returned to their normal level, and landlords will be able to progress serious rent arrears cases more quickly. “These changes will support landlords to progress the priority cases while keeping the public safe over winter.  We will keep these measures under review and decisions will continue to be guided by the latest public health advice.”
Periodic Tenancy: Agreement Signed
Periodic Tenancy: Handshake
A period tenancy is a tenancy agreement which runs through on a periodic term such as weekly or monthly. A periodic tenancy is a tenancy that extends from one month to the next, or less often, from one week to the next. Periodic tenancies can run on a quarterly basis or even a yearly basis, but normally, most periodic tenancy’s run a monthly basis. When dealing with short term agreements, this is the common periodic agreement, then the contract length is determined by who the original rent was paid. For example, if the tenant paid rent weekly previously then the continuing periodic agreement would run weekly, if the tenant paid rent monthly, then the agreement would renew each month. If after the rental period ends, the tenant remains, and continues to pay rent then a periodic agreement is automatically created. To say that if the tenant remains after the agreement is lapsed that they are not on a tenancy agreement is incorrect. Legally, a period agreement is created, which both the landlord and tenant must adhere to. What is a tenancy agreement? If the tenant remains a tenant after the original agreement has ended and new agreement must be formed. If the tenant and landlord do not agree on a new contract a new agreement is formed automatically. This new agreement usually follows the terms set out in the original tenancy agreement and renews periodically. What is a periodic tenancy? A contractal period tenancy agreement differs from statural. A contractual tenancy continues from the original tenancy agreement. The agreement may be contractual in the following three ways. (1) By specifying in the original terms. If it states in the original terms that the agreement will become periodic then it will be. (2) If the orginal tenancy expires and the landlord and tenant agree on a new period tenancy. 3) When a landlord agrees that a tenancy will run periodically instead of a fixed period. You can only ammend these terms if agreed on by both landlord and tenant. In this situation the agreement does not become expired. The agreement renews each period. In a contractural agreement, the period on which the term renews can be agreed upon. Whereas, a statural agreement is predetermined. Is a periodic tenancy a good idea? A periodic tenancy offers more flexibility. Both parties have the chance to reconsider the agreement on a short-term basis. However, it increases risk. Either party can end the agreement on a short-term notice. Most people who can’t commit to a longer-term fixed tenancy agreement will likely investigate a short-term periodic agreement as it means they can withdraw on shorter notice without being committed to something longer term which they aren’t sure they can fulfil. You may consider a periodic tenancy if you arent certain whether you can commit to a fixed term tenancy. With a periodic agreement the landlord and tenant do not need to keep creating new agreement the original agreement will just renew if it is not terminated. Landlords may find a short-term period agreement beneficial as it allows them to remove an unwanted tenant easier. This can be more appealing to the landlord as if they want to end a tenancy agreement they may have to issue a notice to the tenant under a fixed term agreement and have either longer or more complex eviction terms. Tenants may also find short term periodic tenancys more beneficial as it offers them more flexibility. A tenant may need a short term let. Or a tenant may be unsure of whether they can commit to a fixed term agreement. This would give the tenant the opportunity to only commit to a short-term agreement. Giving the tenant the opportunity to end the tenancy on short notice if the need to. Landlord
lease option agreement: properties for sale
A lease option agreement is a contract which gives the tenant an option purchase the property at the end of their rental period. The landlord will let the property to the tenant who as an option to purchase the property after an agreed time has passed. The option can be used with both residential and commercial lets. The tenant and landlord make a legal agreement, where the tenant has the option to purchase the property from the landlord. A lease option agreement is different to a lease purchase contract, a lease purchase contract binds the tenant to the purchase of the property. Whereas a with a lease option, the tenant has the option to purchase the property but is not legally obligated to purchase the property. In both situations the landlord has agreed to sell the property, with the lease purchase the tenant is also legal obligated to purchase the property. But with an option, the tenant does not have the obligation to purchase the property but has the option to purchase. To make simplify, a lease option agreement can be separated in to two parts, the lease and the option. A lease: A tenant pays rent on a property to the landlord. The tenant can operate the property as defined in their agreement with the landlord. If the property is a commercial property, they can use that property for commercial purposes. An option: A tenant has a right to purchase the agreed property at their discretion but is not under obligation to purchase the property. The tenant has the option to purchase the property at a date agreed on with the landlord. An option is popular within the financial sector. With options being agreed on stocks, land and real estate. Allowing the holder to buy or sell something at an agreed price after an agreed period. It is normal for the holder to pay a premium for the option as this gives them a right but not an obligation. The following main conditions are usually included within an option agreement. Periodic payments, otherwise known as rent. This is typically required for the landlord to let the property. The price of the purchase, this is usually included in the contract and should not changed unless included in terms. The agreement duration. The landlord will usually require the tenant to rent the property for a minimum time before the purchase is made. The agreement will also include a time frame in which the tenant should make the purchase if the chose to purchase the property. If the tenant does not make the minimum amount of rental payments, or if the tenant does not decide to purchase the property within the agreed time frame then the agreement is void. The landlord will retain the property. The buyer should pay a consideration in advance. For the agreement to become a legal contract at least one payment must be made, this can be any value, even £1. Reasons to use a rental option A lease option agreement may give the landlord an opportunity to sell a property that they may not be able to sell under other situations. For example, the landlord may give favourable terms to the tenant to increase the likelihood of obtaining the sale. The landlord may be able to generate a better yield from the agreement as rental payments are paid before the sale and the landlord could generate better yield through terms set in the agreement. If the tenant was already renting before the landlord and tenant formed a rental option, then the landlord may be able to avoid brokerage fees. Other times the landlord may add a purchase option to attract a tenant, but, do not expect the tenant to be able to make the purchase. For example, putting a short rental period before the purchase must be made, thus not allowing the tenant enough time to save for the deposit, or give enough time to resolve other legal matters. It is likely that the landlord or seller has no other options which is why they are offering a purchase option. They are tying themselves into a long-term transaction where the buyer has the option to withdraw. Whereas the seller does not have the option to withdraw. A typical scenario is that the owner is in negative equity, this means that the seller owes more than the house is worth, so they delay the sale until they can make up the payments. Disadvantages when using rental options? If the landlord is offering the agreement as they are in negative equity and the landlord can no longer afford the mortgage, the mortgage lender may repossess the property. Both parties should also ensure they have the correct insurance and terms in place with mortgage lender.
Article 24 was introduced in April 2017 and will be phased in over the next four years. This means that you can no longer claim mortgage interest or other property financing, so you can be deducted from tax. On the other hand, a rental benefit with a maximum deduction for financing costs of 20%, the basic tax rate, is taxed for 2021. The full name of the Act is section 24 of the Finance Act (No. 2) 2015, also known as the Tenant Tax as a result of legal proceedings to challenge the law. Section 24 means that landlords can now only claim a tax cut at the base rate, which in most cases includes a mortgage. Before the changes, if you were a taxpayer at a higher rate, you could claim a tax reduction at a higher rate on mortgage interest payments. That has changed, so you can now only ask for a reduction in basic interest rates. So if you've previously only asked for a basic interest rate relief, nothing has changed for you. But for most real estate investors who are in the higher tax bracket, there is now indeed a 20% reduction in what they can claim. What tax breaks can I ask for in terms of financing costs? Before the changes came into effect, homeowners could deduct all eligible mortgage interest and financing costs from their tax accounts. Under the new provisions of section 24, this tax reduction will gradually apply to the basic rate (currently 20%). when the tax liability is granted in the form of a reduction in tax payable and not a reduction in taxable rental income. This means that landlords report their rental income, pay income tax on the entire amount and then claim 20% of their mortgage interest expense as a loan. Delivery in phase of the work as follows: Starting April 6, 2017, higher tax breaks can be claimed on the top 75% of your mortgage interest charge. The basic relief rate is used for the remaining 25%. Starting April 6, 2018, the amount of tax relief you can claim at the highest rates will be reduced to 50% of your mortgage interest costs. The remaining 50% is the principle of tax relief. Starting April 6, 2019, higher tax breaks can only be applied to 25% of your mortgage interest charge. The remaining 75% comes from the base rate. Until April 2021, you can only apply for a tax cut at the base rate of 20%. Who is affected by the changes? It is if you fall into the highest tax brackets of 40% and 45% that a real difference in your final tax bill could be seen under the new rules. The aim, according to the government, is to try to prevent employees from investing in real estate and to demand the biggest tax breaks. For those with higher incomes, often people with rental apartments and "random landlords," the impact should be minimal. Section 24 applies only to persons, not shareholders or persons who can be found, for example, with furnished vacation contracts.
shared ownership mortgage: shared houses
Shared ownership mortgages help buyers who can't secure the full mortgage. If you want to get a property but can only secure part of the mortgage, a shared ownership mortage might help. In this situation you would get the amount of the home you do get a mortgage on and pay rent on the remaining percent. You can buy the remaining percent at a later point when you are able to secure a larger mortgage. Buy part of the house and pay the rent in the rest Under normal circumstances you will buy and own between 25% and 75% of the property under shared ownership. And you will pay rent on the remaining percent. When you are in a position to get a larger mortgage you can buy more of the property. There is another shared property system for 55 year olds and over, called shared property for seniors. It is similar to a shared ownership mortgage except the owner will not have to pay rent on the remaining 25%. Can I buy a higher share of my home at a later date? Yes, it is possible to buy a higher share of the property at a later date. You can buy parts from what you are renting from the association until you have bought and own all the property. The amount you pay to buy the rest of the property depends on the current value, usually. If the property has increased in value you will likely have to pay more to buy further shares. If the property value has decreased, you can buy further shares for cheaper than when you first purchased. How can I sell my house? If you have bought the remaining shares so not own all of the property you are able to sell the property. However, there are certain rules in place which you must follow. If you have not purchased the full property and only own part of the property then the association may find their own buyer. Advantages of a Shared Ownership Mortgage A shared ownership can be a good way to get on the property ladder, as long as you meet the criteria. You can buy what you can afford now, when you can afford more you can take out a higher mortgage. As you only pay rent on the part you don't own your monthly repayments may be less than if you were renting the whole property. What are the drawbacks? It may be difficult to get on to the scheme, you may not meet the criteria. Also, when it comes to selling the shared property there are more conditions you must follow. Also as you only own part of the property, you may have further restrictions. You are still renting part of the property and will have to follow guidelines which may be more restrive than when owning the full property. Guidelines may restrict you in areas such as when it comes to sub letting, or having a pet. How can I apply for a shared ownership system? The shared ownsership scheme is part of a HomeBuy programme, introduced by the government. To start you should contact your local housing organisation or local council. If you are in social housing or in a council property you may be able to apply for a similar program. There are plans for social and council housing where you can buy part of the property you live in and pay rent on the remaining part. You must also be able to get a mortgage for 25% of the property. The minimum critera is that you must buy at least 25% of the property.
A mortgage in principle is commonly a certificate that basically says how much money a lender likes to borrow to buy a home. If you are willing to make a proposal about a property, a mortgage will basically show that you are serious and able to buy. A fundamental agreement, also known as a "decision in principle," is a "mortgage obligation" or "fundamental mortgage," a certificate or a lender's statement that says it will "in principle" grant you a certain amount. To reach an agreement in principle, you must go directly or through a mortgage broker to a mortgage lender. You do not have to go through the entire application process to get an agreement in principle. This will come later if you have been offered an offer for the property you have received. Although this is not a full mortgage application, you still need to provide information to reach an agreement in principle. As a general rule, you will be asked to indicate: your date of birth of three years from your income address history and current expenses, you cannot provide the information without supporting documentation. But you'll need it when you apply for a full mortgage. Does a mortgage affect solvency? To get a mortgage in principle (sometimes called a basic agreement or a decision), you need to answer some basic questions about yourself and pass a credit check. Questions and credit check should check whether: You can afford to repay the loan To what extent has it managed debt in the past? Depending on the borrower, you will receive a hard or flexible credit check. A flexible credit check will be recorded in your credit history, but if you are rejected for the loan, your credit value will not be harmonized. If your application is rejected after a hard credit check, your credit score may suffer, especially if you receive a number of these negatives in no time. When should I agree in principle? Realtors will often want to make sure that you are able to get a mortgage on a property before submitting a proposal, so it may be helpful to have an agreement now. Make sure you have received advice on products and lenders before entering into a basic agreement, as you can leave a soft or hard imprint on your credit report. If you become remypothetated, there is less need for this information, so you will find a basic agreement once you have selected a lender and a product. How reliable is a mortgage in principle? A mortgage is not a mortgage in principle, or even a guarantee that you will receive one. This is an indication of what you can get based on a basic assessment. However, they are useful when you are hunting a home and they are a good first step to know that you could get a mortgage. Basic agreements: What needs to be taken into account in a policy decision is not a guarantee. As you go through the entire application process, the lender will review your income and credit history in more detail. You can choose not to lend it to him right now. Most lenders search for a "hard" loan before offering you a basic agreement that leaves traces in your credit report. This should not be too problematic if you only ask for one or two PIAs. However, with multiple search loan applications on your file in a short period of time can be a wake-up call for anyone who may decide to borrow in the future. There are some lenders who only perform a smooth search that does not affect their creditworthiness. Talk to a broker to find the best lender to apply based on your personal situation. And one last word of caution: Don't base your decision on who gets your help based on the offers they offer, as they may be different from when you are ready to buy a home.
Shop for sale: shop opening sign
Shop for sale:interior of shop
A shop for sale isn't always the first thing to think of when investing in a property or real estate. There is a wide range of outlets, from street shops and country shops to department stores and supermarkets. And they are an important part of the UK's global commercial real estate industry. It is an industry that can be full of long hours and lots of difficult work. You’re going to need to be prepared do research before you buy a store. Make sure you have strong picture of your customers needs and what it is you will sell. However, it is an exciting industry with constant new innovations. Being in a physical store allows you to interact with your customer, use your creativity, and work towards something you are passionate about. How to buy a shop for sale Decide where you want to you’re your store and study the area. Understand the visitors and understand who your customers are. Think about researching your competitors, such as other outlets. You should have a clear understanding of what attracts customers to your business and what their needs are. Decide what your competitive advantage is, why would your customers come to you over a competitor? Much come down to you budget and amount of space and type of space required. You should think about changes in the retail industry as a whole and how they may affect the type of store you need if you plan to fill it. If you want to leave the property, you should also consider what kind of business will be in demand in detail now and in the future. For example, you are expected to click on retail and collection to grow significantly. You may need to think about how this trend may affect your business or tenants. Do you need to buy a store with a suitable location for pickup points? Basic Skills Operating a store attracts a lot of information about how to balance your accounts and consider what you need to store. You must be able to do both. When it comes to understanding what to do, you should consider what is being sold and what it is your customers are looking to buy. You should also be careful if you follow the trends. These can change from one term to the next, from month to month. The long-term behavior of users is more important. It doesn’t matter what kind of store you are buying, there are a lot of challenges in this industry. You will need to be prepared to work weekend, long days, evening and even holidays. Dealing with the public can get tiring. There is also a lot of competition in retail, so will need to keep up with the changes and adapt to your customers requirements to stay relevant. Retail sales are somehow becoming more and more associated with online support. At least you need a website so people can find you. If you are looking to grow your customer base and increase sales through your online presence then it is important that you can integrate your online identity with your bricks and mortar store. Keeping your brand and shopping experience consistent. These challenges are further significant for managers hoping of attracting younger demographics, however, it can be useful for all demographics.. Finding the right store to buy is important. You might find be able to buy a store which has created a good online presence, however, this could increase the price of the business. Ensuring funding You may need a commercial mortgage to buy a business. Large banks and construction companies offer this type of financing. It may also be helpful to seek advice from a commercial mortgage broker. Once you decide on a Shop for sale that meets all your requirements, you must make an offer to the seller, usually through your agent. Just as if you bought a house, you may need to talk to the seller if this is not the first time the seller has accepted your offer. However, once you have reached an agreement, it would be desirable to have a final agreement to remove the store from the market. Please note, however, that there is no lockout agreement in Scotland. If you are insureing a commercial mortgage to buy a deal, now is the time for a written offer. The sale usually takes place when writing a contract, often called a condition manager. You must now hire a lawyer to order the legal work. When looking to invest in a store you should conduct local research to discover all external factors which affect the property. If you are applying for a business mortgage or a business loan, your lender will likely want to inspect the store, and business model. If you have found a store you are satisfied with, have the finances available and have agreed on terms with the seller, you are ready to make the transaction. You may have to pay a deposit. Finally, when the balance is paid, contracts are completed, you will be the new owner of a store.