How long is your lease?
We came across an interesting article on leaseholds and it prompted us to think “how many of our landlords have leases below 80 years?” A lease below 80 years attracts a marriage fee and many lenders will not lend on a lease with less than 70 years left to run. The lower the length of lease, the more costly it will be to extend, so when you do come to sell this could well be a bigger problem than you think. Check your lease and if you need advice then speak with a suitably qualified surveyor or a solicitor.
Long term mortgages?
Before we start, please note we are not mortgage brokers and when it comes to giving mortgage advice this should always be left to an expert, such as an independent mortgage broker.
We noticed a high street lender advertising a 5 year fixed rate mortgage deal at a rate sub 2% with another offering a 10 year fixed rate at around the 3% mark. Will more lenders follow suit given the prospect of lower interest rates for longer than previously thought? It’s certainly worth keeping an eye on the movement amongst lenders.
Is your tenant sub-letting?
It was reported that insurance provider Direct Line for Business revealed that one in six tenants have admitted to sub-letting of which over 1/3 had not informed their landlord.
Based on these figures it would seem to indicate that some landlords were aware of their tenant sub-letting, which then raises concerns in relation to the newly introduced “Right to Rent” rules.
A managing agent should, as part of their service, carry out periodic checks and generally keep an eye on occupancy levels at the property. In some boroughs property visits are required every x number of months as part of a licensing scheme (in Waltham Forest its every 6 months); yet many self-managing landlords may not feel the need to visit their property, especially if the rent is being paid and the tenant never seems to ask about repairs or make any improvement requests. Why would they if it suits them not receive a landlord visit?