ELA News - Issue 4 2015 - Aran Services
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ELA News Issue 4 2015 ELA News
Another year so nearly over, and now we are into the final month of the year, and all the ELA: - Carol, Angie, Andy, myself, and the Directors wish all a very Happy Christmas and New Year. There is no doubt that landlords have had a busy, and in some senses disturbing year getting to grips with new and amended legislation, along with the odd grenade thrown into the sector by the Chancellor. His little 'bonus' to end the year was the 3% levy from April next year on Stamp Duty for purchases made by landlords. Where does he get these brainwaves? Next year will again I am sure bring more challenging times for landlords, and we here at the ELA will do our utmost to help all members to run their businesses, and be here to assist. Please note that, with the help of Fosters Solicitors we are running a course in February on all matters legal. Branch meetings are very much part of the organisation, and these will continue and hopefully expand in 2016, with meetings planned for Southend, and also Cambridge. Any members particularly in these areas with thoughts on possible venues for meetings, as well as speakers, or subjects to be covered, please contact the office, along with any other views on meetings. As in every year we invite members to join our Board of Directors and in the New Year we will be sending out to members an application letter for this process. 2 ELA News
ELA BOARD MEMBERS
Chairman Charles Clarke
Vice-Chairman Paul Cunningham
Secretary Trevor Southgate
Treasurer Chris Kew
John Bannister
Rodney Cooke
Stuart Cunningham
Patsy Day
Howard Gill
John Hindle
Paul Newson
Phil Walters
Branch Chairmen Inside
Bury St. Edmunds Welcome 4
(inc. Newmarket & Cambridge) Patsy Day
Great Yarmouth Tim Gedge Meetings and Events 5
Ipswich and Colchester Diana Malone Branch reports 6-7
North Norfolk Robert Stevens
Norwich & District Phil Walters Right to Rent and the Immigration Act 8-9
Southend-on-Sea Vacant
South Norfolk Charles Clarke Landlord Insurance Policy Coversure Insurance 10
Waveney Becky Clement
Chief Executive Officer Peter Davis List of do nots for tenants - 11
Administrators Carol Craven Responsibility for mould 12-13
Andy Fretwell
Angie Gill News Items 17
Cannabis Factories 18-19
EDITORIAL ENQUIRIES
Andy Fretwell Tel: 01603 767101 Learning From Germany 20
officer@easternlandlords.org.uk
Winter is Here 21
Landlord Tax Update 22 - 23
CONTACT DETAILS
Peter Davis Tel: 01603 767101 Directory Page 24 - 26
info@easternlandlords.org.uk
The Eastern Landlords Association
1 Sprowston Road,
Norwich
NR3 4QL
Front Cover - Top of Ranworth Church tower overlooking
Malthouse Broad
DISCLAIMER
The opinions in some of the articles in ELA News are the opinions of the authors and they are not
necessarily the opinions of the Eastern Landlords Association or its Directors and accordingly
they cannot be held responsible to those persons who act upon those opinions. Advertising space
is sold on a commercial basis and the inclusion of adverts no way implies that the firms are
actually recommended by the ELA, although we do try to select our associates with care.
ELA News 3
Chairman’s Welcome
Seasons greetings to all our members and to
anyone else who might be reading the ELA
News. If you are a Landlord and not a
member of the ELA, seriously look at the
benefits and help we can be to you.
Andy, our Admin Officer has been taking MPs—it is the best scheme in the UK.
nice pictures from around our region to No mention of curtailing it, whereas the
enhance the front cover. poor landlord is going to be hit on the
Time wasters! When I recently advertised a tax relief on mortgages, and the 10%
property to rent through Eastern Landlords relief on furnished lets. So diminishing
I had a good response. Thirteen in total. Of
the income Landlords hope to get in
them, 9 were time wasters i.e. not returning
a call I made after their initial enquiry. The later years. If you have your rental
worst are those who turn up for an income in the bank, one is charged a
appointment to view, are full of praise for monthly fee and charges on transactions
your property and say that they will let you in and out. In my business I draw out
know shortly! Then never respond either twice a year either for holidays or in a
way! deposit account for major repairs. It is
I get the impression that the Christmas and
such a hassle to go and borrow £15-
New Year slowdown started early at the
end of October. Looking at To Let Boards £20K quickly.
in our market towns, some have been on
display for a long while. ELA Rental Elsewhere in this magazine and in future
Properties is so helpful, downloading your editions there will be updates on
property pictures in an appealing way to the Universal Credit. When it finally goes
viewer. Yes, I was able to let my property live throughout the UK there will be 12
to a professional. It is always an interesting million claimants. I went to the
but time consuming exercise showing Universal Credit workshop at the
applicants round your property.
Time wasters—Politicians who are full of Holiday Inn in October held by Bill
eloquent words, I’m curious to know if Irvine,. It was rewarding—he is the
there is any MP in the House of Commons expert on it, advising Local Authorities/
who is a builder or carpenter by trade. The Housing Associations. We are planning
housing shortage is not going away more training workshops in the future,
tomorrow! The Chancellor makes much on the next one being on 20th February
how each Government department has to
2016 covering Legislation. If you feel
set its budget to overall help the
Government reduce the deficit. Not once that there is any other subject suitable
have I heard that the MP’s salary will be for a workshop please let us know. Our
reduced! I think the Prime Minister gave a Legal and Tax surgeries at the office are
guidance to ministers not to take the very popular.
increase. The pensions bonanza for retired
4 ELA News
Finally, much has been made on house retire to, our properties are cheap
price indices—house price inflation. The compared to the Greater London area.
Halifax and the Royal Institute of Under supply of dwellings and market
Chartered Surveyors are well known and forces look to continue house price
respected. Nationally and regionally there increases in our area.
is a steady increase. The Bank of England
has made murmurings on the continuing Charles Clarke, Chairman
increase in house prices. In local villages I
notice Londoners buying properties to
LANDLORD MEETINGS AND EVENTS
Next year we hope to increase our branch meetings across the region. These are an
excellent chance to hear experts in their field, and to meet and network with other
landlords. We are currently looking for Chairs for some of our branches - Norwich,
Ipswich/Colchester and Southend.
Please call the office for more details.
19th January—Great Yarmouth Branch meeting 19.30 to 21.00 at Cliff Hotel,
Gorleston. Speaker details to follow
Jan 21 Legal Surgery – ELA Office – Chris Fielding – Fosters Solicitors
16.00 – 18.00 – Please call the office for an appointment
Jan 25 Ipswich - ELA Branch Meeting – Greshams,312 Tuddenham Rd, Ipswich, IP4
3QJ 19.00 – 21.00 – Speaker – Adrian Newborough – Fosters Solicitors - Section 21,
Right to Rent and all matters legal
Feb. 20 Legislation for Landlords Course: - Ayton House, Ayton Road,
Wymondham 9.30 – 13.00 – ELA/Fosters - Ensure you know the law - £40.00 for
members. Call the office to reserve your place
Mar 3 Southend Forum: - Tickfield Centre, Tickfield Ave, Southend, SS2 6LL
14.00 – 17.00 – Details to follow
6th May—ELA Annual Conference & AGM. Again being held at Wensum Valley
Hotel, Beech Avenue, Taverham, Norwich
30 trade stands plus presentations & buffet lunch
Further details to follow
ELA News 5
BRANCH REPORTS GREAT YARMOUTH
Since my last report, our Branch has met
on two occasions. In September we
IPSWICH
I welcomed again an old friend, Sally
The final meeting of the year for the Chicken from the Rainbow Credit
branch, held at the new venue of Union. She explained how her
Greshams in Ipswich, was the final organisation is able to play a vital role in
meeting of the outgoing chair, Diana Landlord/Tenant issues. With the
Malone, who the ELA would like to Universal Credit due to be implemented
thank for her fantastic and in Great Yarmouth in March 2016, I feel
enthusiastic help in both Ipswich and that any help we are able to muster in
Colchester over the last few years. There confronting the complexities of that
was also a festive spirit to ther meeting, particular system is more than useful.
with mince pies etc. The evening was
mainly a Q and A session, with Speaking of Universal Credit, I attended
discussion on the recent legislative the ELA seminar in Norwich on 28th
changes, and more to come next year. October. I do feel that if the Mad
Those who may have had George Hatter’s Tea Party had been reconvened
Osborne on their Christmas card list by Franz Kafka, I doubt the resulting
have by now removed him. There as no vision of a nightmarish bureaucracy
support at all for his Summer Budget, would have proved as
and now has topped this with the Stamp incomprehensible! No blame is attached
Duty Changes. Those landlords to our speaker or the ELA for arranging
attending, speculated on what he will do the day but: who dreamed up this insane
next. concept – and why? Who thought it
could be introduced smoothly and cost
effectively? There is chaos ahead!
NORWICH
At the branch meeting held on 12th In November we welcomed Adrian
November at the Unthank Arms the Newborough from Fosters’ Solicitors.
Speaker were Adrian Newborough from His brief was to explain the relevance to
Fosters solicitors giving an update on us of the Deregulation Act, which came
the legislation regarding serving Section into force on 1st October. His talk
21 notices and the new requirement for covered such issues as the new
tenancies starting after 1st October Prescribed Section 21 Notice, the new
where the tenant must receive the How rules for Energy Performance
to Rent Guide, copy of EPC and Gas certificates (EPCs) and the new
Certificate. Prescribed Information checklist: ‘How
Colin Fish presented on ‘Tax and the To Rent’.
Landlord’ contents as the presentation
outlined on the next page at our At both the above meetings we were
Waveney branch. fortunate to have representation from
Great Yarmouth Borough Council’s
Housing Department; at such times it is
even more important to maintain a
working relationship with them.
6 ELA News
It remains only for me to wish all boilers, fitted kitchens, etc.
members of the Association of very Mortgage interest relief would be
Happy Christmas restricted from April 2017 and reduce
And a prosperous New Year. over a period of three years. Under the
current rules the full amount of finance
Tim Gedge, costs paid by Landlords are allowed as
Gt Yarmouth Branch Chairman deduction against rental income.
The new rules will be introduced
WAVENEY gradually over a three year period
starting from 6 April 2017, and relief
At the branch meeting held on 4th will be available as follows:
November at the Royal Norfolk & In 2017/18, the deduction from property
Suffolk Yacht Club the speaker was income will be restricted to 75% of the
Colin Fish from Lovewell Blake finance costs incurred, with the
accountants presented on ‘Tax and the remaining 25% being available as a basic
Landlord’. From April 2016 the formal rate reduction.
Wear and Tear allowance which allows In 2018/19, 50% of the finance costs will
10% of rental profits to be written off for be given as deduction and the remaining
notional wear and tear, even if there has 50% will be given as a basic rate
been no such actual expenditure in that reduction.
particular year – will be replaced with a In 2019/20, 25% of the finance costs will
relief that enables all landlords to deduct be given as deduction and the remaining
the costs they actually incur on replacing 75% will be given as a basic rate
furnishings in the property. reduction. This would not apply to
On first time purchase there is no relief holiday lettings. Those with higher
and will be on replacement on stand gearing would be affected worse.
alone goods, carpets, fridge, etc. Not
Notice to landlords
Do you require a gas safety inspection?
A 12 monthly gas safety check must be carried out on every gas appliance.
LOCAL APPROVED TRADESMAN
20 MILE RADIUS OF NORWICH
SERVING LETTING AGENTS,
LANDLORDS & HOMEOWNERS FOR OVER 30 YEARS
GAS INSPECTIONS, BOILER REPAIRS, SERVICE & RENEWAL
CERTIFICATES SENT BY EMAIL & STORED ELECTRONICALLY
DISCOUNTS FOR ELA MEMBERS
BrackenBoiler&PlumbingServices
Tel: 01603 872259 Mobile 07788611521
Gas safe Business Registration 229711
Oftec Oil Registration C9949
ELA News 7
Right to Rent and the Who has a permanent right to rent?
Immigration Act 2014 British citizens; European Economic
Area nationals (Austria,
The Immigration Act 2014 introduced Belgium, Bulgaria, Croatia, Republic of
the concept of Right to Rent to the Cyprus, Czech Republic, Denmark,
private rented sector. This requires Estonia, Finland, France, Germany,
landlords and agents to check the Greece, Hungary, Iceland, Ireland, Italy,
immigration status of prospective Latvia, Liechtenstein, Lithuania,
tenants. The requirements come into Luxembourg, Malta, Netherlands,
force on 1st February 2016 and apply to Norway, Poland, Portugal, Romania,
landlords in England including those Slovakia, Slovenia, Spain, Sweden and
with lodger agreements. It only applies the UK.); and Swiss nationals,
to new tenancies. People who have a right of abode in the
UK; who have been granted indefinite
What are the requirements? leave to remain; or have no time limit on
Landlords must not authorise anyone their stay in the UK.
over 18 to occupy a property as their
main home unless they can establish Who has a time limited right to rent?
they a right to reside in the UK. This
means landlords are now required to Those who are not British citizens, EEA
check the identification of everyone over or Swiss nationals who have:
18 and expected to occupy the property. valid leave to enter or remain in the UK
for a limited period of time
Who is responsible for these checks? entitlement to enter or remain in the UK
The landlord would normally be as a result of Acts of Parliament,
responsible for these checks but they can European Union Treaties and
pass on the obligation to their agent. Immigration Regulations (eg family
This means that an agreement between members of EEA nationals). However,
the landlord and the agent must refer to some family members of EEA nationals
who is responsible for performing right may be able to demonstrate an unlimited
to rent checks. right to rent.
Where the tenant sublets the property
they will usually be responsible for
checking the right to rent status of their How do I check the occupiers?
subtenants. The process for carrying out initial right
to rent checks is as follows:
What is 'right to rent?' Establish the adults who will live in the
property as their only or main home
Right to rent means simply that the Obtain original versions of one or more
occupier has a right to rent a property in of the acceptable documents for all adult
the UK. Anyone without it is occupiers.
disqualified from renting. This can be Check the documents in the presence of
broken down into two different groups, the document holder.
permanent and time limited rights to
rent. Each has different requirements.
8 ELA News
Make and retain copies with the date on tenant has no right to reside in the
which the checks were made. property. At this point the landlord should
refuse to grant a tenancy.
How am I meant to know what the
documents of all the countries look
like? What kind of penalties are there?
The government has provided some Currently this is a maximum of £3000 that
sample documents but the key thing to can be taken as a fine for each occupier
remember is that they do not expect you to without a right to rent and the maximum is
be extensively familiar with the hundreds only applied for repeat offenders. Freedom
of different forms of ID available across of information requests revealed that the
the world. Landlords are simply expected average fine was £800 in the pilot scheme
to establish to the best of their abilities area.
that the document is not fraudulent. So, This is subject to change however and
differing dates, obvious tampering, dependant on the progress of the
expired ID, etc would be a clear cause for Immigration Bill 2015. Landlords may
concern. If the original document looks to soon find the penalty for housing illegal
be genuine after inspection and the immigrants is a criminal rather than a civil
landlord/agent retains copies of it, then penalty.
they will have a statutory excuse which
protects them against prosecution later.
Can I avoid or appeal a penalty?
If you do check the documents and you
have any doubts there is a phone number Landlords are entitled to appeal against
to assist landlords. penalty notices but they will usually avoid
receiving a civil penalty if they:
0300 069 9799
Carry out the initial checks before letting
Do bear in mind however there are only property to the tenant(s) and any other
two members of staff for this line at the adult(s) who'll be living there and keep
moment so service may be slow when it evidence that they've done so
rolls out nationally. Do a follow-up check if the initial check
shows that someone has a limited right to
What should I do if an occupier doesn't rent and contact the Home Office if the
have any ID? second check shows that someone no
longer has a right to rent.
If the prospective occupier does not have
any ID it is possible to have the Home This creates a statutory excuse and
Office perform a check for you. However, prevents prosecution.
this is only available where the adult in Landlords can also appeal on the grounds
question can provide a Home Office that they are not responsible. This would
reference number. This should be be when the agent or tenant has taken
responded to within 2 working days with a charge of the right to rent checks.
clear 'Yes' or 'No.'
Should the answer from the Home Office
be 'No' or the tenant has no ID then the
ELA News 9
Landlords Insurance Policy changes in cover and excesses that may
apply.
information supplied by
Coversure Insurance Many insurers will offer different
premiums for different types of let, more
Services often than not a ‘Professional Let’ (tenant
in work with no Government living
A recent press article raised issues support) will offer the lowest rate and
regarding Landlords making sure they excess. Student and DSS lets are
have the right kind of insurance policy in generally higher in premium and
force for their buy to lets and sourcing a sometimes excesses. So again it is
policy which best suits their needs. important to remember not only to advise
your provider to avoid any
It is true that many insurers will offer a misunderstandings in relation to cover
maximum of 30 days cover until a but also because it is possible that you
property is deemed unoccupied and may receive a refund from your policy if
reduced cover comes into play. It is very they are aware of the correct tenancy.
important for policyholders to contact
their insurance providers and make them Coversure Insurance in Lowestoft are
aware of any changes in tenancies from delighted to be one of the approved
when the policy was incepted in order for suppliers for the Eastern Landlords
your insurers to confirm to you any Association and we have access to many
insurers for landlords insurance. We
have a specific scheme in place
which extends the standard 30 days
un-occupancy period to 90 days for
ELA members. The Loss of Rent
cover is provided at 20% of the
rebuild sum insured with a 12 month
indemnity period.
Further to this they are also able to
cover Malicious Damage and
Malicious Damage by Tenants.
10 ELA Newschild and it is Halloween
LIST OF DO NOTS Do not yell “Order Up!”, and throw
FOR A TENANT hot-dogs at people as they walk
past your window
Do not climb other resident's
On a return train journey from London balconies while drunkenly
recently our CEO having attended a yelling “I AM SPIDER-MAN”
meeting of the Residential Property Do not attach basketball hoops above
Committee of the BPF, was reading resident doors, knock, and then
through the Metro newspaper, and came “dunk on them” when they
across this rather amusing list from a answer
landlord, who had put this up in a block of Do not enter the laundry room in a
flats reminding the tenant of the rules. luchador mask and try to wrestle
These are some of the more off-beat other tenants
items, and this as is evident, is from the
US: - The list ends with this: -
Moving forward, failure to abide by these
No yodelling at any time rules will be grounds for eviction.
Do not feed the squirrels nachos
Do not change the sign for the Fitness Thank you
Center to the Fatness Center Management
Do not place the rent checks in a bear
trap outside the rent office Do any of our members have such a list?
DO NOT YELL AT THE MOON
No trick or treating, unless you are a
ELA News 11WHO’S RESPONSIBILITY proofing. This may be different in
commercial properties where the tenant
FOR MOULD IN A may take on repairing responsibilities.
TENANTED PROPERTY The most common cause of mould is
through condensation and this is
typically caused by the tenant’s
Mould in property can cause serious lifestyle. For example, lack of proper
health issues and therefore, if found in a ventilation, not opening windows or using
tenanted property, should not be ignored heating. They should be regularly airing
by either landlord nor tenant. The mould the property to prevent the growth of
fungi have been identified as the source of mould.
many health risks such as asthma,
allergies, infections and sinusitis. Moulds What can landlords do to prevent
produce allergens, irritants, and in some mould?
cases, toxins that may cause reactions as Looking from the outside of the property,
well as being unsightly. And, it’s not a landlord should first check for obvious
uncommon – according to a recent structural defects, that the walls are not
housing survey by Shelter, 61% of suffering from rising damp, is there a
renters have suffered damp, mould or presence of a damp-proof
leaking roofs. course? Check that any wall cavities are
clear of debris and that airbricks are clear
The laws and rules surrounding the and perhaps consider fitting additional
management of mould within tenanted airbricks to ventilate under suspended
properties aren’t clear cut, so when it floors. Ensure that the roof tiles are in
comes to deciding who’s responsible for good condition and no leaks are present.
removing the mould and fixing any Inspect the guttering and down pipes,
afflicted areas, it can result in disputes make sure that they are carrying the water
between landlords and tenants. away from the property or into adequate
drains. Solid concrete floors are prone to
What causes mould to appear? damp so may require a damp proof
The main causes of mould include; water membrane.
leaks, penetrating or rising damp, wet or
damp basements or crawl spaces,
condensation, excessive water vapour or What can tenants do to prevent mould?
steam being generated through cooking, When checking a tenant into a property,
washing, bathing, showering and clothes we always advise going through the
drying, inadequate ventilation and/ inventory with them room by room. At
or heating. this point, it is a good idea to educate
them on the causes of mould and how
Who’s responsible for dealing with little lifestyle choices can make a big
mould? difference to their living conditions, health
For mould to be the landlord’s fault, it and comfort.
will usually have been caused by For starters, after a bath or shower, the
something that’s wrong with the build of room should be ventilated to the outside,
the house, such as structural defects, not to the rest of the house –
leaking pipes, or ineffective damp-
12 ELA Newsjust opening a window (and closing the Save money on your Energy
door) will help. You as the landlord
may also wish to fit an extractor fan.
Performance Certificate !
Advise tenants to dry clothes outside on
a line (if possible) or in a cool area of the
property (although this may take longer,
less moisture will be held in the air at
any one time). If the tenant chooses to
dry clothes indoors, they should ensure
that there is plenty of ventilation in the Whenever you build, sell or rent a
room. If they are using a tumble dryer, property, you need to provide an Energy
the dryer should ideally have external Performance Certificate.
air extraction. When people come in The EPC document contains information
with wet coats and umbrellas, they about the property’s energy use and
should be hung or placed outside the typical energy costs as well as
living area to dry – like the porch. Even recommendations to reduce use and save
the arrangement of furniture in a room money. Your property will get an energy
can have an impact, especially against an efficiency rating from A (most efficient) to
outside wall. G (least efficient) and the certificate is
Difficulty finding proof valid for ten years. Most people think you
The problem with mould in your buy-to- have to obtain this report from the estate
let property is the difficulty of agent that sells your property. This is not
identifying the person at fault. It can be the case as those estate agents without
tough to prove whether the mould was their own energy assessors pass the work
caused by a structural defect or simply a to companies.
lack of ventilation. Ezzi Solutions can provide you with an
In particularly difficult cases, a damp Energy Performance Certificate. More
expert can be called in to assess the importantly the EPC is the key to unlock
property and make a report that can be available government grants to help
used as proof of the party at fault. There insulate and provide new boilers for
are trade organisations that should be certain homes free of charge to the
used to find a qualified specialist one of landlord and tenant.
which is the Property Care Association. OFFER—if you are looking to sell or rent
They can also recommend the best ways out your property and you are a member
to remove the mould and prevent it from of Eastern landlords Association please
growing again. get in touch for preferential rates -
contact on www.ezzisolutions.co.uk
or call 07974 773256
Please check out their website for further
details for their range of services.
ELA News 13LEGISLATION FOR LANDLORDS
There is considerable legislation that impacts on landlords
in the Private Sector.
The ELA are delighted to offer a half-day course suitable
for any Landlord or Letting Agent, giving an outline of the
law that affects the running of their business.
Saturday 20th February
10.00—13.00
Ayton House
11-17 Ayton Road
Wymondham
NR18 0QQ
Members £40.00 Non-Members £60.00
Refreshments included
Parking available
14 ELA NewsREFERRAL SLIP FOR MEMBERS RECOMMENDING A
FRIEND / COLLEAGUE TO JOIN EASTERN
LANDLORDS ASSOCIATION
ELA Member name
ELA Membership Number
Referred landlords name
Referred landlords address
Date
Please return this slip to :
Eastern Landlords Association
1 Sprowston Road
Norwich
NR3 4QL
Tel (01603) 767101
info@easternlandlords.org.uk
ELA News 15THE EASTERN LANDLORDS ASSOCIATION ESTABLISHED FOR 25 YEARS – SUPPORTING AND ADVISING THE LANDLORD TELEPHONE HELPLINE – STAFF WITH MORE THAN 20 YEARS EXPERIENCE OF DEALING WITH LANDLORD ISSUES. HELP WITH CHANGING TENANTS, USUALLY WITHOUT NEED TO USE A SOLICITOR LEGALLY COMPLIANT FORMS AND LETTERS, INCLUDING ASSURED SHORTHOLD TENANCY WEBSITE, WITH SPECIAL MEMBERS ONLY AREA, INCLUDING LOCAL SUPPLI- ERS, AND DOWNLOADABLE FORMS AND DOCUMENTS SPECIALISED LANDLORD PROPERTY INSURANCE REGULAR NEWSLETTERS - BY EMAIL KEEPING MEMBERS UP TO DATE, WITH NATIONAL AND LOCAL NEWS FREE QUARTERLY MAGAZINE AND QUARTERLY MAGAZINE LOCAL MEETINGS, WITH GUEST SPEAKERS, AND THE CHANCE TO NETWORK WITH OTHER LANDLORDS ANNUAL CONFERENCE AND EXPO – FREE TO ATTEND FREE TAX AND LEGAL INVESTIGATION COVER – PROTECTION AGAINST THE COSTS OF DEFENDING AN INVESTIGATION TAX DEDUCTABLE MEMBERSHIP FEE ONLINE LETTING AGENCY – FIND A TENANT WITH OUR RIGHTMOVE AC- COUNT TENANT REFERENCING REGULAR LEGAL AND TAX SURGERIES SEMINARS AND TRAINING OFFERS FROM LOCAL AND NATIONAL SUPPLIERS INCLUDING FOSTERS SOLICITORS MEMBERSHIP OF THE BRITISH PROPERTY FEDERATION, WITH OUR VIEWS HEARD AT MINISTERIAL LEVEL. 16 ELA News
NEWS ITEMS and must be used for all tenancies from
this date. Please also remember that this
Autumn Statement cannot be issued in the first four months
On the same day that The Times wrote of the tenancy, and has a shelf life of only
that the Bank of England is keen to six months from the date served.
increase costs of lenders of Buy to Let
mortgages, dear ol' George gave his Empty Homes
Autumn Statement. There were several A recent BBC report looked at why there
parts of this that will, or may affect are so many empty homes. Across
landlords. These include CGT which from England there are over 200,000, empty for
2019 is to be paid within 30 days, 400,000 more than six months, with the highest
affordable homes to buy and to rent, percentage in the North East and North
planning reforms, releasing public land, West, with twice as many as in the East. If
loans for small builders, extension of everyone of these becomes legally
Right to Buy, and the BIG ONE, stamp occupied, that is only a one year
duty on Buy to Lets with a 3% levy from commitment from the Government for
April 2016. We as usual await full details, new homes. Even Shelter has stated that
especially on what is meant by Corporate the main emphasis must be on
Landlords, who it seems may be exempt construction. Interestingly, there was a
from the levy. When we have details we reported case recently of a council owned
shall pass on. property in London being sold for almost
£1m. Whilst this was the main headline
Deposit Schemes news, it was equally significant that the
Having had a monopoly of custodial property had been empty since 2002. So
schemes since these started, the DPS will much for councils and rhetoric on empty
have competitors from April next year. properties! There certainly is more that
Both The TDS and My Deposits, having can be done, both nationally and locally,
run insurance based schemes are and as with so much in the general
extending their product range to include housing sector there is no one quick and
such a scheme. TDS is owned by ARLA easy solution.
and RICS, and My Deposits jointly by
Hamilton Fraser, an insurance company, Universal Credit
and the NLA competition is of course As from Monday 7 December this is live
always welcome, and time will tell if these in Norwich, as the latest council to join
are durable. the scheme. As in other areas the impact is
likely to be slight, at least initially, and if
Section 21 any member is affected, or may be
From 1st October all new tenants must affected by this change, please contact the
receive a copy of the EPC, GasSafe office, or contact
Certificate where applicable, and a current benefits@norwich.gov.uk.
copy of the How to Right Guide; as well
as a copy of the prescribed information
where a deposit is taken. The new Section
21 form, replacing the two that previously
applied depending on whether fixed term,
or periodic, is available on our website,
ELA News 17Cannabis Factories – How their property damaged by being
converted into a Cannabis Factory. The
do I prevent this from costs of repairing the property and the
happening to me? money lost in rent can seriously damage
your short term profit and long term
The increase in ’Cannabis Factories’ is investment plans.
something which hasn’t gone unnoticed.
When the first signs of the ‘Credit So what can a landlord do to minimise this
Crunch’ recently began to take effect I happening?
saw an increase in Cannabis Factories Well, converting a property into a
being notified or articles in the various Cannabis Factory is not something that is
forms of news media. Even though these done overnight. It usually takes several
began to reduce when the economy was weeks or even months to fully convert a
showing signs of recovery during the last property for the cultivation of illegal
eighteen months I have seen that such drugs.
claims or news items are appearing again.
I cannot say whether this is due to one Having the property regularly inspected
particular influence or reason; it may well will deter tenants from making severe
be a brief abnormal increase which will be changes to the property, not only this, you
soon forgotten. catch the conversion at a very early stage
which will save you a lot of time, stress
These claims are not as common as escape and money.
of water claims (thankfully!) but they can
be incredibly costly to both the landlord - Many landlords these days use Letting
and the insurer. Agents to carry out such checks as well
I am sure not any landlord wants to have the day to day administration of a
residential let.
Despite this, I have
found that in some
cases these Letting
Agents are not
inspecting a property
at regular intervals or
forward you a copy
of their report.
Therefore, I would
strongly recommend
that all landlords ask
what intervals your
agent inspects your
property and request
that you are advised
and forwarded a
report every time one
is conducted.
18 ELA NewsIf you haven’t heard from your agent expect these to be a condition of your
when an inspection for your property is landlords policy for you to claim for such
overdue, call them to clarify what is damage and repairs, so make sure you are
happening. aware of your policy’s warranties and
conditions. As the insured, you have a
This is not true of the vast majority of responsibility to the insurer that you will
Letting Agents; many of them are very do all you can to minimise the risk of a
professional, reliable and devoted in their claim from occurring.
duty and service to their landlords.
It would also be expected that all Some will either have an actual
Landlords are conducting credit checks endorsement noted on the Policy Schedule
and references for any prospective new whilst others will consider these to be
tenants which can help identify a tenant done under their ‘Duty of Care’ warranty
with prior examples of malicious damage within their respective Policy Wording.
or intent. If you would like to speak to me about
anything raised in this article or you have
These are merely a couple of simple a query regarding your own policy, please
suggestions to minimise the risk of your do feel free to contact me on 01603
property becoming a Cannabis Factory or 264350 or tom@drayton-insurance.co.uk
becoming targets for other forms of After all, it is what we’re here for!
malicious damage. However, I would fully
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ELA News 19tear.
LEARNING FROM
GERMANY A landlord in Germany can evict without
notice if the rent is unpaid for two
months, or interestingly for noise or
The UK has borrowed much from disturbance to neighbours.
overseas. What if anything can we learn
from the rental market in other countries, There is rent regulation, and Berlin
particularly in Europe? announced a rent cap earlier this year. It
is often the case that state and local
What we have learnt from the Germany, governments provide subsidies for the
apart from how to take penalties? The building of private rented housing, and in
nation with the largest private rented exchange these properties are often let as
housing sector. In Germany over 50% of social housing for the first years.
housing is private rented, with the
population happy to rent long-term. Other European nations, including
House prices have been declining for France, Holland, Spain, Sweden and
many years. Denmark also have longer tenancies. In
these countries it is the norm for
There is often a view in certain sections landlords to be larger companies, that
of the media that holds up the especially could be institutions, or individuals with
German model as the way to go for the very large portfolios, and with often a
UK. As with much reported, one can much smaller proportion of individual
'cherry pick' parts of a system in another landlords than in the UK.
country to suit a certain standpoint,
without giving the full picture. Many of these countries have a form of
rent control, with Denmark, Holland and
Leases in Germany are normally Sweden having stable rents In France
unlimited, and to end a lease normally this is the case in a number of cities,
the landlord needs to give three months where localism is more evident than in
notice, and it can be up to nine months. the UK. Whilst in Germany it applies in
Tenants give three months. The deposit certain areas that are viewed by the
is usually three months rent. The tenant central government as being under 'high
supplies, prior to renting, to the landlord housing pressure'. In addition there are
copies of photo ID, proof of income, a different rules to the UK on paying rent
credit report, and a certificate from the if there is a repair issue, and in France
previous landlord showing no the tenant cannot be evicted in winter.
outstanding rent. The onus being thus on
the tenant, rather than on the landlord, as The 'small' landlord is almost a uniquely
in the UK. British phenomenon, with the estimates
that some 70% of the private landlords in
It is common practice also for the tenants the UK having one property. The
to re-decorate the property prior to concept of the accidental landlord is
moving out, returning it to the original generally not found across the Channel.
state. Again not quite as in the UK ,
where allowance is made for wear and
20 ELA NewsIf an inclusive situation, consider
WINTER IS HERE switching energy supplier
Check gutters and drainpipes
Winter can invariably bring landlords Trim/prune trees. Usually those
more stress, and with it often more cost. within 5 meters could cause damage
Here are a few reminders that will maybe to foundations, and trimming will
help get through to better weather: - help with keeping gutters clearer.
Generally check the exterior for
Check that the buildings insurance loose tiles/slates, replacing if
covers fro winter-related damage. necessary. Are all fences secure? A
Ensure that the tenant knows where small repair could prevent a more
the stopcock is located expensive one later. Also as a tip, cat
Check the boiler has been serviced litter is an excellent alternative to
Beware of burst pipes. Are the salt for clearing ice off paths, and
pipes lagged? If the tenant is going will not harm plants.
to be away, is there sufficient heat in
the property. Remember that Ensure that the tenants know what to do
ordinary household salt and warm if a problem. If a service contact, as for
water will unblock a frozen drain heating system, do they have the contact
Bleed the radiators number? If the property is to be left
Educate tenants on ventilation. empty for a period, leave the loft door
Condensation is often caused by lack open to prevent freezing, may be pour
of this, and the lifestyle of the tenant, same salt down washbasins, sinks to
and have expensive repercussions prevent freezing.
ELA News 21Residential Property interest rates start to increase.
Landlords - Tax update There are other consequences of the
changes. For example, if your income
Loan interest and finance costs will now exceed £50,000 after allowing
restriction for the removal of the interest relief you
may have to repay some or all of any
The chancellor announced in the summer child benefit received. Your entitlement
budget that after 6 April 2017 there to Tax Credits may also be affected if
would be changes to the tax relief on the you are currently eligible to claim them.
interest paid on loans and mortgages
used to buy or improve properties which Planning suggestions
are let for residential purposes. The new There a number of planning possibilities
rules will limit the tax relief on the for those affected but the first stage is to
interest to the basic rate of tax. The rules calculate the effects of the changes. This
will operate by disallowing the interest would normally involve recalculating
included in the rental expenses and your tax liability based on the current
therefore increasing the taxable rental figures but taking into account the tax
profits. A tax credit for 20% of the changes to see how much the tax
interest disallowed will then be deducted increases. After this a further calculation
from your tax liability. could be made which takes into account
some increase in the interest rate. That
The changes will be phased in from 6 will allow you to consider whether you
April 2017 which will in the first year need to do anything to plan for the
disallow 25% of the interest and instead changes.
allow a tax credit at the basic rate of tax.
The percentage affected will be 50% of If planning is needed then the following
the interest in 2018/19, 75% in 2019/20 could be considered;
and 100% in 2020/21. During this
period, the allowable part of the interest Property transfer
costs will remain unaffected and be One option could be to transfer some or
treated as a deduction from your rental all of the property to your spouse who
profits. If the tax credit cannot be may have unused basic rate band which
relieved in full, it cannot create a would limit the effect of the interest
repayment instead the unrelieved tax restriction. A form will need to go to the
credit will be carried forward to offset Revenue if this is done.
against future rental profits.
Incorporation
The new rules will have a substantial As the new rules do not apply to
effect on the tax liabilities that many companies, you may consider
landlords will have to pay by the time the incorporation. This may be attractive to
measures take their full effect in some as the rate of tax for companies is
2020/21. For those landlords with higher only 20%. It is important to think about
loan to value loans, their cash flows are the tax involved in the future with a
likely to turn negative after allowing for company both for the company and then
the increased tax bills, particularly if on extracting the profits following recent
22 ELA Newschanges to the taxation of dividends. The and kitchenware used by the tenant such
tax on selling properties in the future as:
should also be considered. Moveable furniture or furnishings, such
as beds or suites,
The capital gains tax and SDLT televisions
implications of transferring existing fridges and freezers
properties to the company will need to be carpets and floor coverings
considered as there can be tax charged – curtains
it is possible in certain circumstances to linen
transfer properties in without either of
crockery or cutlery
these arising but advice should be taken
on this before proceeding to avoid
The replacement of fixtures integral to
unexpected large liabilities.
the building would be treated as repairs
to the building and would therefore be
Reducing the level of borrowings
tax deductible. Some examples of such
You could also consider selling some
expenditure would be:
properties in the portfolio to reduce the
Baths and basins,
amount of interest payable. The capital
gains tax implications of this should be toilets
considered and the amount of tax that boilers
will arise estimated in advance. fitted kitchen units
The conditions of any mortgages and the The new rules will apply to residential
possible cost of replacement mortgages property landlords of both unfurnished
would need to be considered with these and furnished properties. This is an
alternative routes. improvement on the current situation
where landlords of unfurnished
properties cannot claim the replacement
Changes to the replacement of
costs of carpets or free standing white
furniture goods.
If you would like to discuss in more
From April 2016, the Wear and Tear detail any tax matters in relation to
Allowance will be replaced and residential properties, please contact
landlords will be able to deduct the Colin Fish.
actual costs of the replacement of
furnishing. At present landlords of
furnished residential property can elect Colin Fish
to claim wear and tear allowance at a rate Partner for Lovewell Blake LLP
of 10% of their rental income each year
instead of claiming the actual cost of t: 01603 663300 d: 01603
replacing the furnishing. The new relief 692203 m: 07939 500394
will only apply to the replacement of a e: c.fish@lovewell-blake.co.uk
furnishing and not the initial cost. The www.lovewell-blake.co.uk
new replacement furniture relief will Bankside 300, Peachman Way,
include furniture, furnishings, appliances Broadland Business Park, Norwich
NR7 0LB
ELA News 23Welcome to our Directory Page
This is for individuals and small businesses to advertise at a price of £50 for 4 issues (covering 12
months). For details of advertising on this directory page (maximum 5 lines of text) contact the office on
(01603) 767101 or email us to info@easternlandlords.org.uk
The Green Deal & EPCs MALI BUILDING
Professional service, reasonable prices and
GREEN DEAL ASSESSMENTS covering experienced and reliable.
Norfolk & North Suffolk. Prices from £45 Painting/Decorating, Tiling and General Building
Contact Nicolette Pollock 07814 756682 Works.
Email: Nicolette.p@btinternet.com Working in partnership with the ELA
Tel 07999 913796
“LANDLORDS” NEED AN EPC? Email: mali.building1@gmail.com
Gt Yarmouth/Lowestoft areas
For a professional local service call Julian Canham
DEA at Hopton EPCs on 07887 991456
hoptonepc@gmail.com Cleaning Services
EASTERN EPCs & SURVEYS All Round Clean – for Carpet, Upholstery and
EPCs starting from £45 incl. Cambs and surround- Pre/End of Tenancy Cleaning. Approved
ing areas. Tel 07599 801436 for quote. Contractor to the Norfolk Constabulary.
www.easternepcandsurveys.co.uk Trustworthy, Reliable and Quality
Service Assured.
Phone Simon – (01603) 280711 / (07789) 936453
Heating & Plumbing Services
Berry Bros Property LTD
NORWICH GAS tel 07908 290919 Professional Cleaning
Local Company offering good rates for Landlords Professional checkout cleans, Regular cleans,
Safety Certificates. Appliance services, cookers, Carpet cleaning, Upholstery cleans
fires and boilers also installation of gas fires, boil- Friendly reliable service, available at short notice
ers and cookers www.berrybrosproperty.co.uk
Email: Stephanie@berrybrosproperty.co.ukor
ELECTRICAL PLUMBING HEATING Tel: 01603 629 941
SERVICES
Gas Safe registered for your heating and plumbing
needs including Landlords gas safety inspections/ Insulation & Renewables
certification. Tel: 0845 389 1689
ARAN SERVICES LTD Cavity, Wall, Loft &
Property Maintenance
Solid Wall Insulation. Solar Water Heating, PV
and Air Source Heat Pumps.
JOHN ROBERTS 20 mile radius of Norwich Tel: (01284) 812520
A complete painting, decorating, maintenance &
repair service including fast response clearing and
cleaning. SUFFOLK INSTALLERS LTD
Tel. (01603) 898206 or 07976 627004 **FREE Cavity Wall Insulation 2015**
Loft Insulation, Solar PV, EPCs
Tel 01449 722288 or visit
Norfolk and Suffolk property maintenance www.suffolkinstallers.com
services: painting and decorating, tiling, carpentry,
fencing, general repairs, end of tenancy cleans and
tidying of gardens. Works carried out to a high
standard with exceptional value for money. For a
free quote/ advice phone Phil on 07597 053291
24 ELA NewsInsurance Services Letting Agents
YOUR ADVISORS Letting Agency.
COVERSURE INSURANCE SERVICES We expertly manage rooms (HMO’s), residential
Providing insurance packages for all types of properties, corporate and short term lets in East
Residential and Commercial property owners. Anglia. Call us on (01473) 410070 to discuss your
Call 0800 988 7133 requirements. lettings@youradvisors.co.uk
www.coversure4landlords.co.uk We host ELA meetings in the Colchester and Ipswich
Branches
DRAYTON INSURANCE SERVICES
Providing insurance packages for all types of
Residential and Commercial property owners. Bart Lettings, Property Management & Letting
Call (01603) 262610 Agent. Covering Norfolk, offering a wide range of
www.draytoninsuranceservices.com Services at competitive rates, no VAT. So give us a
look. www.bartlettings.co.uk or phone Gary on
The Advanced Rent company provide innovative 01603 278023 or 07552733833
landlord insurance products and tenant referencing
for the property sector providing
bespoke engineered products which are exclusive to
Advanced Rent and underwritten by DAS. MPJ Property Solutions Ltd,
Property management & Letting agent
Tel (01603) 821030
Norwich and county service, 30 years experience
info@advancedrent.co.uk Over 450 tenancies under management, great rates
www.advancedrent.co.uk especially for multiple prop. Landlords
01603 625999 www.mpjproperty.co.uk
john@mpjproperty.co.uk
Electrician
T.D ELECTRICAL, TONY DOWNING
LETTING AGENT HONORATA
Domestic elec periodic inspection specialist. All
ARTEMOR LTD
remedial repairs undertaken. Tel 07749 461237
153 Nelson Road Central,
downingantony@yahoo.co.uk
Great Yarmouth NR30 2HZ
Telephone: 01493719883
Email honorata.agent@gmail.com
Accountancy Services
CHARLES DOWDING ACIS MCB Property Specialists
Accountancy Services for small/medium businesses. Independent lettings & property management
Accounts and Tax for Landlords and Sole Traders. covering all of Norfolk.
Book keeping service. Personal, honest & efficient service.
Please ring Charles Dowding (01603) 462370 for Tailor made packages to suit your requirements.
discussion without obligation or email Highly competitive rates with no VAT.
dowding@alcoruk.com www.mcbps.co.uk Tel: 01603 487070 email:
info@mcbps.co.uk
facebook.com/mcbpropertyspecialists
LOVEWELL BLAKE LLP Carpet Cleaning
In supporting over 10,000 business and personal
clients, we know that each and every one is different.
It’s because of this that our support is tailor-made to END OF TENANCY CLEANS
suit our clients’ needs. From accounts, tax and all the No drying times. Can be walked on immediately.
things you’d expect, to strategy development and all Count Carpet Care—Dry Cleaning Specialists.
the things you wouldn’t. Ask Jon for a quote!
Tel: 01603 663300 (01263) 821076 www.countycarpetcare.biz
www.lovewell-blake.co.uk
ELA News 25Fire Safety Carpenter / Joiner
HOUSING AUDIT SERVICES Ltd P J BUTLER—alterations, repairs and
Richard Lord, Chartered Environmental Health maintenance. Free estimates given.
Practitioner offers Fire Safety Risk Assessments Tel (01603) 720627 or 07880 907032
and routine
management inspections to HMO landlords. Tel
07963-862-097 or contact housing-audit- Decorators
services@virginmedia.com
www.housingauditservices.co.uk IAN TOWARD DECORATORS
For all your decorating and maintenance needs.
Mortgage Advisors Fully insured. Call Ian on (01603) 467950
or 07754 486005 Email ian-toward@hotmail.com
INDEPENDENT MORTGAGE ADVICE AT
MORTGAGE ADVICE BUREAU Windows & Doors
Great Yarmouth Office – Stephen Alger – 01493
844855 S & C WINDOW REPAIRS We repair misted or
Great Yarmouth Office – Stephen Robinson – broken windows, doors and
01493 856561 conservatories, broken handles and hinges. For a
Lowestoft Office – Jackie Pretswell – 01502 free no obligation quote call -
565432 Tel: 0800 160 1932 or email Steve Olley
Norwich Office – Oliver Dack - 07810 552850 at sandcwindows@gmail.com
stephena@mab.org.uk or www.sandcwindows.co.uk.
ww.mortgageadvicebureau.com/aldreds
Painter & Decorator
MITCHELL C SCOTT PAINTER/DECORATOR
For all your decorating needs to a very High
Standard. 25 years experience
Very Affordable Hourly or Daily Rates
call 01603 400091 or 07596335540
26 ELA NewsELA News 27
Fosters act for commercial and residential landlords throughout East Anglia providing a comprehensive range of legal services. Our residential Conveyancing department offers a presence at Auctions throughout the Region, and should things go wrong our specialist property litigation team will ensure your investment is protected. Contact us on 0800 214 072 Norwich: norwich@fosters-solicitors.co.uk William House, 19 Bank Plain, Norwich NR2 4FS Wymondham: wymondham@fosters-solicitors.co.uk 1 Middleton Street, Wymondham NR18 0AB Lowestoft: lowestoft@fosters-solicitors.co.uk 17 Clapham Road South, Lowestoft NR32 1PG Bungay: bungay@fosters-solicitors.co.uk 3 Trinity Street, Bungay, North Suffolk NR35 1EQ SATELITE OFFICES: Bury St Edmunds: Bury St Edmunds Enterprise Centre Government Offices 100 Southgate Street Bury St Edmunds, Suffolk IP33 2AQ Gorleston Beacon Innovation Centre, Beacon Park Gorleston, Norfolk NR31 9AL Ipswich Felaw Maltings, 44 Felaw Street, Ipswich Suffolk IP2 8SJ Fosters website: www.fosters-solicitors.co.uk 28 ELA News
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