With the London property market showing signs of contraction and the Office for Budget Responsibility projecting that London property prices will begin to shrink, some London property owners have started letting the properties they would have otherwise sold. Whereas the original intention may have been to divest, to sell and redeem mortgages or simply to liquidate the capital asset and have the cash ready, some have turned to tenants as a means to produce an income from the property.
While we are seeing this trend in London today, we work with properties and clients across England and Wales, and may see this in other cities and areas in the coming months.
By granting an Assured Shorthold Tenancy (AST), the prevailing form of tenancy, the owner of the property grants possession for a period of time often as little as six months or a year. After which, the landlord can bring the tenancy to an end and recover possession. This way, the new landlord receives an income in the form of rent and can kick the proverbial conveyancing can down the road. This may in turn afford an opportunity for markets to recover.
The difficulty is, even with a straightforward off the shelf AST, it is hard to know when and what goes in a precedent or if a precedent tenancy is fit for purpose! Never mind landlords duties and obligations.
At Spratt Endicott our lawyers can not only draft new ASTs but also have the skills and expertise to navigate disputes between landlords and tenants, tenants and fellow tenants, and also perhaps most importantly our colleagues know how to help new landlords navigate the compliance and regulatory regimes. For existing ASTs we can review and have the expertise to amend or vary the terms.
With increased regulatory pressures and costs, for example concerning energy efficiency or right to rent checks, we can help new landlords cut through the jargon and get down to business, capitalising on an asset and exploring options besides selling in a difficult market.
Wealthy Londoners becoming landlords because they can’t sell their homeshttps://www.telegraph.co.uk/property/buy-to-let/wealthy-londoners-becoming-landlords-cant-sell-homes/