Summary of the Law
Acts of Parliament, such as The Rent Act 1977, The Housing Act 1988 as amended 1996 and The Housing Act 2004 regulate the relationship between Landlords and Tenants. This legislation has been brought in to protect both Landlords and tenants.
Assured Shorthold Tenancy (AST) were brought in with The Housing Act 1988 as amended 1996. These are the most commonly used agreements and allow greater security to both parties. Using an AST agreement gives you the flexibility to create it for any length of time, although a landlord cannot normally recover possession within 6 months from the start unless there has been a serious breach of the agreement. Contrary to popular belief there is no difference as to the security of tenure for the tenant between a furnished house or an unfurnished house.
The Housing Act 2004 saw the introduction of Energy Performance Certificates (EPC) as amended on 6th April 2013, which is now a requirement for a landlord to have for each rental property before it is brought onto the market.
If you are letting a Leasehold property more common if you are letting an apartment then written confirmation must be obtained that letting is permitted. A copy of the Head Lease must be provided to us and we will then attach it to the tenancy agreement.
If you have a mortgage on the property you are looking to let then we require written approval from your lender. This can take some time so we suggest as soon as you know you are going to let this is of high priority.
The income you receive from letting your property is classified as ‘unearned income’ and is liable for tax. If you remain in Great Britain whilst letting your property then you are responsible for declaring the rental income you receive to the Inland Revenue, but you may claim allowances to offset the tax due. We recommended that you seek advice from an accountant.
If you are to be an overseas resident whilst letting your home then basic rate tax had to be deducted by Lawton & Dawe Properties and then paid to the Inland Revenue. If you wish to receive your rent gross of tax you should complete a NRL1 form and return it to FICO. A separate form must be completed by all owners of the property and we can provide these to you.
Legal and Loss of Rent Cover
To provide peace of mind, we would recommend you have legal and loss of rent insurance in place. For further information please contact us.