Do I need to have a lease?

This post is in response to a very common question on our blog. If you’re involved in anyway with property rental Liverpool or in another city you’ll want to know about leases. We’ve asked our good friends Bluerow lettings who understand the issues with property rental Liverpool… for advice.

It’s important to seek professional property management advice on all legal issues.

Under English law, tenancy agreements can be created orally and do not need to have a written agreement to be legally binding – in fact, once a person is given possession (exclusively) of land or property (usually evidenced by possession of the keys) and the owner accepts rent payments, a tenancy comes into existence legally.

However, getting an agreement in writing is strongly recommended as oral agreements are obviously difficult to enforce because there is often no proof of what has been agreed, or a particular problem may have arisen which the agreement did not cover.

Is there a ‘standard’ lease?

The type of tenancy you have depends to a large degree on when it was taken out, but is likely to be an assured shorthold tenancy.

Can the landlord makeup the lease himself?

There are obligations you and your landlord have which may not be set down in the agreement but which are given by law and are implied into all tenancy agreements. These terms form part of the contract, even though they have not been specifically agreed between your landlord and you.

What does the lease have to include?

Written agreements need to specify certain things, including:

* The type of tenancy you have
* Your name and your landlord’s name and the address of the property which is being let
* The date the tenancy began
* Details of whether other people are allowed the use of the property, and if so, which rooms
* The duration of the tenancy, that is, whether it runs out on a certain date
* The amount of rent payable, how often and when it should be paid and how often and when it can be increased.
* Whether your landlord will provide any services, for example, laundry, maintenance of common parts or meals and whether there are service charges for these
* The length of notice which you and your landlord need to give if the tenancy is to be ended. Note that there are statutory rules about how much notice should be given and these will depend on the type of tenancy and why it is due to end.

You are obliged to take proper care of the accommodation and your landlord is also obliged by law to give their address.

Can the terms of the tenancy agreement be changed during the period of the tenancy?

A tenancy agreement can normally only be changed if both you and your landlord agree, in which case the change should be recorded in writing, either by drawing up a new written document setting out the terms of the tenancy or by amending the existing written tenancy agreement.

An oral agreement can also be varied, and usually the variation will be oral too. In the case of a dispute, evidence of the variation can be provided if there were witnesses to the new agreement or simply by both parties acting on the variation, for example, by paying and accepting a new rent.
Problems

Did you like this? Share it:

Getting a Tenancy Agreement

As these posts are designed to help our prospective landlords in the Liverpool area. We thought this post would be applicable if you have a house to let Liverpool city centre, or you’re looking for a house for rent Liverpool.

It’s important to seek professional property management advice on all legal issues.

What type of tenancy will I have?

The type of tenancy you have depends to a large degree on when it was taken out. If you are a tenant and you are unsure what type of tenancy you have, check your tenancy agreement. If you don’t have one, ask your landlord for a copy of it. Here are some guidelines:

It started before 15 January 1989: it is likely to be a regulated (or protected) tenancy.

It started on or after 28 February 1997: it is an assured shorthold tenancy, unless the landlord has said in writing that it is an assured tenancy. The tenancy may start either with a fixed period or as a ‘periodic’ tenancy which runs from week to week or from month to month (depending on when rent is paid). Either way, the tenant has the right to stay for at least six months.

It started on or after 15 January 1989 and 27 February 1997: it will be an assured shorthold tenancy if the landlord made this clear on a special legal form at the beginning. Otherwise it will be an assured tenancy. The tenancy must have had an initial fixed term of at least six months.

Did you like this? Share it:

Rental Legislation General points

Please remember you should seek professional property advice on all legal issues

At Bluerow lettings, we’re always trying to answer commonly asked questions. As we have homes to let Liverpool city centre and beyond, we consider ourselves an authority on rental legislation.

Tenants have a right to “quiet enjoyment” which means the freedom to enjoy the property as any “owner” would – free from unnecessary interference by the landlord.

Tenancy agreements are partly contractual, i.e. an agreement between landlord and tenant which can be enforced by a court of law. And, particularly with residential tenancies (as opposed to commercial or business tenancies), they are partly governed by statutory (Act of Parliament) rules which cannot be over-ridden by the contractual rules.

Residential tenancy agreement terms must be deemed “fair” and are governed by the Unfair Terms in Consumer Contracts Regulations 1999. An unfair term in a tenancy agreement may well reassure the landlord, or indeed the tenant, on some point, but it would be unenforceable at law.

If you have a flat in Liverpool you’d like to rent or if you’re looking for a property management company visit Bluerow lettings.

Did you like this? Share it:

Landlords Survey in the UK Private Sector Part 2

More news from the landlords survey we’ve covered in a previous post

Although this survey is nationwide, and particularly stresses the attractiveness of London, we feel the Liverpool rent a flat lifestyle, is currently very appealing to prospective landlords.

‘Our 2011 Landlord Survey confirms that buy to let remains an attractive asset class for savvy investors. Landlords are clearly positive about the future of buy to let and they have good reason to feel this way with rental demand growing as a result of a number of underlying drivers,’ said Bob Young, managing director at CHL Mortgages.

‘Clearly, a lack of credit, tougher lending criteria and higher deposit requirements are suppressing residential property ownership for many, which is resulting in considerable pent-up rental demand a real positive for the private rental sector,’ he explained.

‘With uncertainty in the equity and bond markets we can therefore expect more investors to reconsider buy to let as an alternative asset class; even more so if property prices continue to fall over the next couple of years. We can also expect some accidental landlords or investors who unfortunately bought the brochure pre credit crunch to exit the market if an opportunity presents itself, and existing landlords who are committed to the sector and eyeing up further purchases may well be able to enhance their portfolios as this happens,’ he added.

Meanwhile, a separate report shows that the surge in interest in central London rental property is continuing. According to WA Ellis there is a marked increase in students looking to get settled before the start of the new academic year in September. Due to the shortage of supply of studio and one bedroom flats to let, rents in this area of the market have increased by as much as 10% since the beginning of the year.

Expats are fueling the family house market with cases of three of four families bidding against each other. The short let market is also extremely active and this is set to continue over the summer months while people flock from all over the world to Henley, Ascot and Silverstone. With the Olympics this time next year, short let prices may well be six times more than they are today, it added.

In short… the rental market is positive if your an ‘accidental landlord’, you can capitalise on this as with the current lending crisis. This survey demonstrates that students and prospective buyers alike are fueling a demand for rental properties.

To rent a property in Liverpool, with it’s three universities, is a very attractive proposition at the moment.

Visit Bluerow Lettings if you have a property you’d like to rent.

Did you like this? Share it:

UK Private Sector Landlords Survey Part 1

Private sector landlords in the UK are confident about the future with 67% positive about the outlook for the buy to let sector, according to a new research published today (Monday July 04).

The latest survey by specialist lender, CHL Mortgages, shows that landlords were particularly positive about rental demand with 43% suggesting it is now better than six months ago and it is sufficient to cover mortgage repayments, maintenance and cost.

If you rent a house in Liverpool, CHL believes that rental yields for residential investment properties have accelerated since the credit crunch and subsequent recession three years ago.

In the short term some 33% of landlords said they were looking to buy more investment properties in the next 12 months, up from 28% last year. However, a lack of finance was still cited as the biggest constraint to achieving this aim. The other major constraint on expansion was the high deposit requirements that now come with buy to let mortgage products.

It also found that one in five respondents said they would consider fixing their buy to let mortgage to protect them against future interest rises and four in five landlords make adequate provisions for maintenance of their investment properties from rent receipts.

The same figure indicated they do not make over-payments on their borrowings indicating that borrowers are more inclined to channel any surplus rental income towards maintenance.

CHL believe the growing positivity shown by its landlord borrowers is reflected in its own arrears experience. At the end of May this year, the number of accounts greater than three months in arrears had fallen to 855 from a 2010 year end figure of 933. This represents just 1.92% of CHL’s total of 44,477 live accounts on its loan book and the lender fully expects this downward trend to continue despite a still uncertain economic outlook.

Whether you’re looking to rent a flat in Liverpool or if you’re interested in renting out your flat in Liverpool speak to Bluerow lettings. They’re more than happy to help

Did you like this? Share it: