Deposits from Tenants

Do you let out property as a buy-to-let or are you a tenant? If so, the new rules in force on 6th April may affect you. From that date all deposits taken by landlords for assured shorthold tenancies have to be protected by a new tenancy deposit protection scheme. There are two alternatives - the ‘custodial’ or ‘insured’ scheme.

Christina Smith says – “Under the custodial scheme the tenant pays the deposit to the landlord who then has 14 days to send it to the scheme and give the tenant certain information. At the end of the tenancy the scheme returns the deposit. If there is a dispute over damage, amounts etc. then the scheme will hold the amount until the dispute resolution service or Courts decide what is fair. Under the alternative insurances schemes the tenant pays the deposit to the landlord who retains this amount. However, the landlord must pay a premium to the insurer. Again certain information required by law must be given to the tenant. If there is a dispute then the landlord at that point only hands the deposit to the scheme to deal with and resolve the dispute. If for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it.

If you need any advice on this or any other property matter call Christina On 029 9221 0170.

HOME INFORMATION PACKS – CONTACT CHURCHERS FIRST

The Home Information Pack Regulations are now in place and the contents of what is required has become clearer.

Presently, they become compulsory on the 1st June 2007. Although the Government have removed the requirement for the seller to provide a Home Condition Report it was one of the most contentious parts of the Home Information Packs and it is still necessary to have a pack available on the first marketing of a property. We strongly recommend that you contact Churchers as soon as you are considering selling your property – perhaps even before contacting an estate agent.

It is anticipated that many people may place their properties on the market before the 1st June 2007 as the Home Information Packs will still impose more expense on sellers than is currently the position. There are still major criticisms of the Home Information Packs and pressure is mounting on the Government to make further changes.

Regardless of their final form, Churchers will provide Home Information Packs for clients who wish to sell their properties as well as providing comprehensive advice to prospective purchasers. Should you require information on what is required in a Home Information Packs please contact a member of our conveyancing department.