Leydon Lettings Student Houses in Canterbury

 

The following is more than a glossary - provided for mainly student-tenants and fellow student landlords and letting agents to peruse.  This is not exactly a training manual on housing law,  nor a legal advice centre or real estate authorty, but it is very informative with numerous descriptive illustrations, mnemonics and anecdotes. Some commonly known topics barely need mentioning, whilst others warrant elaboration.  Leydon Lettings provide as much or as little as needed.  The first line of explanation provides a brief description followed by a more detailed description if required.

The glossary is written by Bob Leydon except where other authors are credited or the content is evidently public domain information e.g. information provided by government organisations like HMRC and Acts of Parliament usually indicated by a link to the source.

Landlord and tenant information is provided free without responsibility and is subject to updates.  We welcome any additions or corrections and accept no responsibility for errors or ommissions.

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Abandonment of tenancy:

• The surrender of a tenancy without adequate tenant notice.
• S5(2) HA'88 requires a landlord to procure a court order or action by a tenant signifying surrender - e.g. departure AND return of  keys.
• This appears straightforward, but for some landlords this threatens a number of pitfalls. 
• Landlords should be certain their tenant really has left and is not merely conveying such mis-impression.  Landlords can be duped into a trap set by unscrupulous tenants in order to use the legal system to secure contrived compensation. 
• Prudent landlords will do their own legal research as well as demonstrate due diligence with correct notices to repossess  before letting to new tenants! 
• A former tenant failed to pay rent and stole other tenants credit card details, before emptying his room of possessions and disappearing with the keys.  In such circumstances would you have felt free to re-let the room?  Most would!  Wisely we waited.  Sure enough, returning un-announced three weeks later, cases in tow, this tenant half expected his room to be re-let. 
• I happened to be present when he returned - he looked genuinely disappointed to find his room untouched.  Re-letting might have enabled him to claim compensation, which was evidently the point of the exercise.  Be warned! 
• Incidentally he was eventually prosecuted and sent to jail for the credit-card theft and fraud, but not before putting everyone in the house through hell!  This only happened once in 25 years, so it is rare.
• See also related topic Abandonment of goods or possessions

Abandonment of goods or possessions:

Absent Landlords:

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Academic Term:

An academic year is split into terms or semesters

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Academic Year:

• Academic years usually run from July to June each year.

• Most students start their first day during September, but this varies from course to course and also between educational establishments

• An academic year is split into academic terms - usually three - four if including Summer term:

• The timing of these academic terms is vital when seeking or providing accommodation.

• If a prospective tenant approaches a letting agent for accommodation with a term starting in September - but ending three months later, then this would cause alarm bells to ring for most agents and landlords.  Why?  Because at the end of this short tenancy, letting agents in Canterbury will not easily be able to re-let that accommodation to conventional students, whose academic year ends in June.  The number of non-conventional students who might rent from January to June is so small, a void would be likely.  So "the bird in the hand" in this instance is not "better than the two in the bush".  Better to leave the accommodation vacant and wait until a conventional student arrives to remain for the whole year.  This is not to say, never accept students 'out of time'.  There may be commercial reasons why such a decision might occassionally be prudent.  Should the same student arrive in February and only wish to rent until say May, then a letting agent might consider that this is a reasonable compromise, since the property might otherwise remain unoccupied until June.  Prudent Landlords and letting agents keep records enabling comparisons with past and future months and years.   Supply and demand together with observations in market trends, as well as political and economic factors when analysed, all improve letting success. 

• If a tenant leaves, say after January in any year, it will be very difficult to find a replacement.  This is because most students have already found accommodation for the whole academic year.  This topic is also related to Dropouts

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Accelerated Notice To Quit:

• ANTQ:
• Section 21 of the Housing Act 1988 provides that
• a Notice To Quit (as opposed to non-accelerated [s.8] Notice To Quit)
• is only available to end AST tenancies.
• CLTs require a separate notice to quit.

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Access:

• This can involve
• accompanied viewings, or
• providing keys to tenants upon arrival or
• to enable access following loss of keys.
• Where students present themselves advising they need urgent replacement keys Leydon Lettings require:
• identification (student I.D card with matching photo) and
• a signature in the key book prior to release and
• we retain a record of key holders.
• This applies to trades people who should sign in and out all keys.
• Keys are kept coded and in a locked cabinet for security!
• Never identify a property on a key nor provide a clue to the property address by marking the key other than with a secure key code.
• Lost keys can enable dishonest finders easy entry to your house!

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Accidental Landlord:

• An owner occupier who becomes a landlord without intending to, or without awareness of the responsibilities of a landlord.  Initially intended to tide over a temporal situation not expected to last, with unintended results.
• An owner may wish to sell a property in a depressed housing market.  Unable to sell he lets the property in the hope the market improves. 
• Meanwhile, he finds the new arrangement suits him and continues indefinitely.
• The issues arising during this "apprenticeship" period attract unfavourable comments from more experienced agents and landlords. 
• The perception is that amateur unregulated landlords lower the standards and perceptions of the letting profession by flouting the rules and in extreme instances endangering the lives of tenants.
• Inexperienced landlords might be best to engage an experienced agent.

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Accommodation types:

• Each category of accommodation carries different nuances.
• Understanding each market is not critical; however, landlords must understand their own market to avoid serious pitfalls.
• The main two main genres are:
• Student accommodation and
• Professional accommodation.
• Other categories include:
• Council Housing,
• Benefit recipients,
• Asylum seekers,
• Parolees,
• Holiday lets,
• Company lets,
• Satellite accommodation for recovering alcoholics etc.  Each is a specialist topic.
• Leydon Lettings has, for 25 years, accommodated all these genres.
• We started renting accommodation in 1987 letting to students with other categories along the way.  Access to decorate, with tenants in situ was challenging, with one tenant resident for 13 years!
• We now specialise in student accommodation.  Students have stayed as long as 7 years!  Summer vacations enable predictable access for maintenance.  This suits our ethos.

Accreditation - Landlord:

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Acts of Parliament and judicial cases related to property:

1. Housing Acts 1925 -
2. Warren v Keen 1954 -
• ""to use the premises in a tenant-like manner"...
• The tenant must repair damage to the premises caused, wilfully or negligently, by him, his family and his guests."
3. (Torts ) Interference with goods Act 1977 (see possessions) 
4. Protection from Eviction Act 1977
5. Rent Act 1977 -
• Student Halls of Residence
• Protected Tenancies
• Resident Landlord exception only if at the time of letting
• Succession rights of spouse or civil partner
6. Unfair Contract Terms Act 1977
7. Landlord and Tenant Act 1985 -
• S.8-11 landlord duty to repair
• Secure Tenancies (mainly LAs)
• s.8 Grounds 1-16 for eviction (see g.17 1995 Act)
8. Housing Act 1987-
• Assured Tenancies (more security)
9. Limitation Act 980
10. Town & Country Planning Order 1987, providing for certain changes of property use from Class C3 residential use, to Class C4 HMO use.
    
11. Post Office v Aquarius Properties 1987 -
•  Flooded basement; repair to original condition only.
12. Landlord and Tenant Act 1987 Section 47 and 48 - name and address of the landlord should be included in the tenancy agreement
13. Housing Act 1988 -
• Step towards deregulation to free up over regulated housing market (esp. since HA77)
• Assured Short Hold Tenancies  - ASTs (less security)
• s.20 Notices HA 1988 Notices
• s.21 HA 1988 Notices;
• Fixed Term s.21 b or periodic term s.21 a options
• Market rent
• Recover and enforce only after 6 months
• Exception
• Ground 2 HA'88 mortgagee defaults s.101 LPA 25
• Exceptions: [R.A.S.H.100k) - acronym]
• Resident Landlords
• Agricultural Land tenancies
• Student Letting (only if in Halls of Residence)
• Holiday Lettings
• < £1000 p/a London or elsewhere,
• >£25k p/a now >£100k p/a
• Grounds for eviction:
•  1-8 Mandatory;
• 1  Owner principle former home returning
• 2  HA'88 mortgagee default s.101 LPA 25
• 3 Fixed term < 8 months AND former holiday let
• 4 Term < 12 months etc.
• 5 Minister of religion e.g. manse required.
• 6 Renovation works render uninhabitable
• 7 Former tenant of Deceased
• 8 Rent Arrears according to rent frequency
• 9-17 Discretionary:
• 9 Suitable alternative accommodation available
• 10 Some unpaid rent on date of service
• 11 Persistent late rent
• 12 Unperformed obligation or default tenancy
• 13House deterioration
• 14 Nuisance annoyance / immoral illegal conduct
• 14Aa Tenant departure unlikely to return
• 15 Furniture deterioration
• 16 Employed tenant no longer employed
• 17 Misleading statement inducing tenancy (HA 1996)

14. Town and Country Planning Act 1990
    This act covers development, enforcement, conservation, listed building consents, Letting and Estate Agents boards.

15. Environmental Protection Act (1990),  or anti-social behaviour legislation discouraging e.g. noise.

16. Periodic Tenancy  Hammersmith Council v Monk 1992

1. Two joint tenants. One of whom provided notice to quit to the Council landlord, but neglected to inform the other joint tenant who remained in the property.  The Council re-possessed the property.
   The House of Lords (HoL) upheld a series of Court of Appeal (CoA) judgments deciding one party to a joint tenancy can end a periodic joint-tenancy unilaterally, by giving correct notice to quit.  Exceptions include express contractual terms to the contrary.  The Council was granted Possession.

17. Finance Act 1995 - tax affecting overseas landlords

    Housing Act 1996 - AST now default tenancy effective 28Feb 1997

18. Housing Act 2004 -

• Deposit protection from 2007
• s.54 Mandatory Licensing large HMOs from 2007
• s.55 Additional Licensing small HMOs discretionary by LAs
• s80 Selective Licensing small HMOs discretionary by LAs
• And much more... this is now the most comprehensive property Act.
19. Money Laundering Regulations 2007 - Estate Agents required to report suspected fraudsters
20. Equality Act 2010 - section 15 

• defence to eviction
• consolidated all previous discrimination acts .

1. Localism Act 2011 -

•  EPCs & DPS
2. What next?

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Address for Service:

S.48 of the Landlord and Tenant Act 1987 requires that a tenant is provided with an address where notices can be served on the landlord. This address must be in England or Wales and can be the name and address of any managing agent.

It is important that tenants forward to the above address for service any correspondence sent to the landlord or "the owner" of any rented property.  Tenants are normally contractually responsible for the consequence of failing to forward or advise the existence of such notices.  This might include letters or utility bills which if neglected may result in services being disconnected.  The tenant cannot then reasonably deny responsibility or fault and will suffer the loss of the service disconnected and the reconnection charges as well as any meter or locks replaced in the process.

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Administration Fees (Admin Fees):

• There are various time consuming administrative jobs required to establish due diligence.  
• These jobs are not free in that someone has to pay.
• Who should pay the costs of: setting up a tenancy, vetting and credit checking?  Presently (2013) parliament is debating the justification for such fees.
• In Scottland the 1984 Rent Act prohibits administration pre-tenancy fees.  There are concenrs that England may follow.
• These jobs cannot all be conducted in-house by letting agencies - some jobs require outside organisations to act, precisely because they are seen to be independent, i.e. unbiased, such as inventoriy clerks. The reasoning is that in the event of a dispute a court can see that there is likely to be impartiality, since inventory clerks must work to a set code of practice.  
• Others jobs require specialist access to protected data enabling credit checks.  
• The agency pays these fees and recovers them form landlords and tenants.

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ADR Alternative Dispute Resolution:

• This is the independent means of resolving disputes over deposits between landlord and tenants.
• All landlords are legally required to register an AST deposit with one of four or five Deposit Protection Schemes.

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Advanced Rent:

• The amount of rent payable prior to commencement date of the  Tenancy Agreement
• See the case of Johnson v Old 2013 establishing the distinction between a deposit
• See also Admin Fee/Re-Booking Fee
• Each tenancy attracts costs chargeable to the tenant.

Agent:

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Amenities:

• The number and availability of common facilities like:
• sinks, drainers, hobs, hoods, fridges, freezers, shower, toilet, bath, hand basins, en suite or shared lounge, storage, garden, driveway, central heating by e.g. combi-boiler, etc.
• This can also refer to some furniture e.g.
• Single or double beds, etc.
• Amenities are important to attract tenants.  They also include the items which require most effort to clean at the end of the tenancy.

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Amortization:

• see direct repayment mortgage:
• This is a means of repaying a mortgage in regular instalments until the loan is repaid with interest decreasing inversely proportionally to the rate the equity increases using a mathematical formula.

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Anecdotes for landlords and tenants:

• Most landlords and tenants have amusing stories to tell.
• See Reasons to be cheerful

Anual Percentage Rate APR

Annualised Rent and or Bills:

Arrears:

• Any Money remaining unpaid by the tenant following the due date as in the tenancy agreement.
• A landlord who is the client of a letting agent can also be in arrears if he fails to pay money to an agent for e.g. maintenance.  Technically this should never happen as the rules on letting prohibit agents from using un-cleared funds.  However, see also Agent of Necessity permitting agents to act without authority or cleared funds. This comes under the topic of lending for which an unauthorised lender's license is required.
• An agent can also be in arrears if he fails to pay his client landlord on time following receipt of cleared funds e.g. rent.
• Landlords should be kept informed of any significant arrears. This is particularly important if the lanldord has a rent guarantee insurance policy- the insurrer will need to be notified within a specific time-frame that arrears exist to avoid invalidating the insurance terms and conditions
• Tenants should be contacted to remind them of the arrears at regular intervals but without harrassing them by telephoning tenants at work and leaving a message indiscriminently with a workmate or their boss thereby breaching rules of confidentiality.
• When a tenancy agreement makes provision for interest on late payments this must be calculated on a daily basis and added to the statement of account for the landlord and tenants.  It might be prudnet to use this as a lever to prise the correct amount of rent with the promise to forego the interest if the tenant cooperates.  Should the matter go to court no such leniency is likely to be tolerated by a landlord due to the amount of preparation required to attend and provide documentary evidence.
• Guarantors should be informed quickly of any arrears as they are likely to want to correct the situation before it escalates costing them yrt more money.
• Should a third party assist the tenant or may a payment on their hehalf there is a risk that this creates a separate contract with the third party (see consideration).  To avoid this murky situation the agent simply provides a duplicate receipt clarifying that the payment is received from the payer as" agent for the tenant" and to avoid doubt the tenant's name and adress should be entered on the receipt and signed by the named tenant's agent and countersigned by the landlord or the landlord's agent.

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Arrival Date:

• The date agreed for arrival subject to providing notice of this date.

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Article 4 directions:

• The use of statutory planning controls to protect, preserve or prevent what was, from what could be.

• In this context, protecting residential communities by curtailing the number of HMOs within a selected area. 
• The aim is to prevent the current spread of HMOs and in particular student HMOs. 
• This requires compliance with LAs and Landlords involving a "change of use" of an owner-occupied residence Class C3 to a Class C4: HMO status. 
• There is no charge for Art 4 Directions. 
• Indeed a large number of simultaneous applicants could consequently cripple a LAs administrative budget. 
• Could this be why many Councils in the UK are arguably (cynically) introducing fee paying discretionary licensing? 
• Some inspections incurring fees under licensing are suspiciously similar to those which are the responsibility of LAs under other legislation, but which attract no fees!
• The penurious-plot thickens!
• Enabled via the HA 2004
• This move was first introduced by MP John Healy in Southampton for the Labour party on 29 January 2010 and supported by fellow labour MP John Denham.
• Implemented on 6 April 2010,
• Repealed temporarily by the coalition government on 1 October 2010.  Why?
• To allow for the statutory minimum of 12 months consultation by LAs.
• This period of consultation has now expired in Canterbury and the survey is complete.
• A decision is imminent and potentially without notice.
• As at Early August 2012 it is envisaged an executive meeting following a meeting in November will result in a formal decision.
• If the vote is against no further action is required.
• If the vote favours an Art, 4 Direction or a series of Art 4 Directions then it could be implemented without notice.
• See also Planning Permission and Additional Licensing.

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Articles:

A collection of articles and anecdotes by Bob Leydon

1. Article-4-Directions---Impacting-Landlords-Students-and-Residents
2. Article 4 Direction Avoidance – A Pyrrhic victory
3. Dropping-In-or-Dropping-Out---Costly-Either-Way-You-Say-It!
4. Drugs,-Students-and-Housemates
5. Lets-Have-a-Fine-Time-Landlords---Lets-Get-Fined
6. Gold-DIY-Medals-for-Canterbury-Students
7. HMO-Licensing---A-License-to-Print-Money
8. Landlords-and-Letting-Agents,-LANLAs,-Avoid-Conflicts-of-Interest
9. Lilliputian-Landlords-and-Student-Councillors,-Fight-Canterburys-Local-Giants
10. Mortgage-Gambling-Fuse
11. Ousting-Ogres-or-Embracing-Friends-for-Life
12. Tenants-in-Common-or-Joint-Tenants
13. Reverent Residence – Open Wide Please!
14. The Writing Is On the Wall.
15. A collection of anecdotes - Reasons-2b-cheerful.html
16. Student-Rubbish-or-Rubbish-Residents

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Asking Price:

• The amount of rent or sale price advertised before negotiation.

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Associations - Landlord and Letting:

• ARLA, NALS, NAEA, NLA, NFoPP, RLA, SLA, TPOs, UKALA, Safeagent for details click each link.  Some landlords and agents may belong to more than one of the above regulatory bodies.

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AST (Assured Shorthold Tenancy):

• Assured Short Hold Tenancy created by 1988 Housing Act enacted 15 January 1989.  Unless specified the AST is the default tenancy for domestic residents.  However, see also exceptions like CLTs
• Prior to this date compliant protected (sitting) tenants could not be evicted.
• Since this date AST tenants have right to remain for a minimum of 6 months. 
• The Housing Act 1995 as amended permits any duration of tenancy, unusually it it may not be enforceable within 6 months.
• This is important for landlords with pre-1989 tenants since different rules afford more protection to such Assured tenants.

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Assured Tenancy:

• The default tenancy prior to 1997. 
• This is important to landlords considering buying a house with tenants predating certain legislation. 
• Letting Agents must also be careful when accepting properties with assured tenants.
• Get it wrong and the result may be a sitting tenant with  potential  succession rights! 
• What does this mean? 
• Well... not only are landlords prohibited from evicting the compliant tenant but
• Following death the tenant's off-spring may be permitted to continue in residence. 
• Great, say some naive landlords, there will never be another void! 
• True, but the rent is regulated so the resulting rent is almost worthless in the loan to rent ratio.

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Auction

Bailiff:

• Bailiffs are court appointed officers empowered to enforce e.g. County Court Judgments CCJs.  
• They can gain entry to homes and are entitled to collect debts and repossess property and homes.

Bank Statements:

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Benefit-Recipient:

• One in receipt of a state benefit such as the local housing allowance is said to be a benefit recipient.
• Many landlords will not accept such tenants due to the dificulties endured which include the risk of having to return rent the landlord ws entitled to but that the tenant was not.
• Incidences of damage to property and rent arrears is higher in this category of tenant, than most others.

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Betterment:

• This might occur when a claim for dilapidations for an aging item is being charged as new.  This would be an unfair charge to tenants if e.g. the walls were badly marked after two years of letting.  If it were normal to redecorate every 7 years then in this instance the most one could reasonably charge is 5 /7ths of the total cost of decorating.

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Bills Package:

• The provision of a variable combination of utility and other services.
• Leydon Lettings provides for: gas, electric, water, sewerage costs, telephone, internet, TV and TV license. In addition Leydon Lettings do not charge tenant's for our gardener to cut the grass bi-monthly.

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Bills:

• Includes: e.g.:
• Utility bills:
• gas,
• electric,
• water,
• sewerage costs.
• In addition Leydon Lettings provide:
• telephone,
• internet,
• TV and
• TV license
• I.e. double the number of services normally provided in such packages.
• no charge for our gardener to cut the grass

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Blacklisting:  See Data Protection:

• The Data Protection Act 1998 does not prohibit landlords divulging personal information where they have a legal obligation to do so.  E.g. to LAs and utility cos.
• The Data Protection Act 1998 prohibits landlords divulging personal information where their motive is vexatious.
• http://www.ico.gov.uk/forthe_public/topic_specific_guides/housing/landlords.aspx

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Blind Booking / Reserving Blind:

• This is not recommended
• A tenant reserves a property without first seeing (viewing) a selected house.
• Occasionally, overseas tenants have little choice but to trust the property particulars which is why the accuracy of such details is imperative.  Landlords should beware of such potentially fickle reservations as they are often unsecured.  An initial payment will not cover the lost rent should the tenant walk away upon seeing the house, location, room size, housemates, proximity to uni. etc.
• If possible prospective tenants should ask a local friend or relative to view before reserving.  
• Similarly a landlord might buy a house unseen, trusting the seller's description or Property Particulars. 
• As a landlord Bob Leydon has done this twice:
• the first was a great purchase,
• the second regrettable - there will not be a third!  
• However busy, try before you buy. 
• Not so risky if only letting as you can walk away after the tenancy expires.

Block Management:

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Booking/Reserving a property:

• This describes any procedure required to secure your selected house.
• Rebooking for a further year can involve as much work as the initial reservation if busy current tenants need constant reminding to provide further information. 
• In the worst cases a landlord / agent will retain a property for current tenants who insist they want to stay but offer compelling reasons for not formally signing (out of the country, on holiday, in hospital, etc.), e.g.  Then after the student viewing season has passed, decides to leave before signing the renewal. 
• This leaves fewer available students to fill the vacancy. 
• In some instances a void is created as a consequence of the kindness in keeping the property. 
• The agent is unfair if they do not wait and:
• Negligent if they do but consequently do not secure a letting.

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Break Clause:

• A tenancy agreement clause permitting either or both parties to prematurely end or break their tenancy agreement.
• This said, there is an exception to this rule: 
• within the first 6 months of an AST only the tenant can enforce a break clause.  
• The landlord must be content to wait 6 months before the courts will permit him to attempt to end the tenancy, with or without a break clause despite the inclusion of the break clause in the AST.  Statute prevails over contract!
• With mutual agreement, no minimum notice period is required. Should just one party disagree, then the legal procedures must be carefully followed.

Broker:

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Bridging Loan

Building Control:

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BTL Buy to Let Mortgage:

• Designed specifically for investors / landlords, BTL  loans are based, not on the affordability of the borrower, but on the viability of the loan.  Viability is based on two main factors: loan to rent ratios coupled with loan to value.
• This is in contrast to home owner /occupiers, whose mortgages are based on less reliable 'affordability', linked to their "earned income".  A job can be lost in a moment; rental income is more secure.  Rental income, however hard gained, is not categorised as 'earned'. 

• Bye Bye Buy To Let:

• Proposed EU rules could see new BTL mortgages withdrawn.  
• Reckless lending and borrowing resulted in some home owners losing their homes and in rare cases, investors losing their investment properties.
• This resulted in cries for regulation.  It is right that residential borrowers are protected by regulation.  And to a lesser extent commercial borrowers also.
• Analogically, the problem could begin with a life-saving transfusion of regulation, to which the patient investor, together with the entire economy and population, is tragically allergic.  The protection intended to cure, could kill vulnerable patients.  But will Dr. EU, first test for an allergic reaction, before emptying the syringe into the lifeblood of the UK housing market?!

• How might any new EU rules curtail new BTL mortgages?

• Current BTL mortgages will continue until their terms expire, after which time loans cannot be renewed as a BTL. 
• The consequences would be manifold.
• Existing mortgages falling due for repayment may not be extendable! 
• This is the point at which investors will be waving bye bye, buy to let.

• Regulation

• The reasoning for requiring "affordability" in light of historic economic evidence is compelling and actually sounds prudent, at first; but upon closer examination proves specious.
• It is imprudent to categorise landlords and investors as 'residential borrowers' in need of 'protection'.  These are savvy business investors, normally required to be existing home owners, whose affordability is already pre-established by track record.  In addition borrowers must pass strict Buy-To-Let rules and satisfy the loan to rent ratio LTR is, in fact, affordable. This is easily verified by conservative surveys conducted by independent surveyors, who are accountable to the regulatory body RICS - Royal Institute of Chartered Surveyors.
• With all this existing protection and the low number of BTL failures, what is the need for further regulation?  It is as un-cool as putting a gilded notice on a fridge, warning: 'it is cold inside - wear a coat before opening!'  Protection rackets are not normally linked to the EU but this stretches beyond the borders of the English Channel and any logic.

• Immediate Effect

• The wider implications are really serious for all.
• Lenders will be unable to lend if investors cannot include rental income to demonstrate affordability.
• Investors could in future be unable to: borrow, remortgage or extend mortgages.  

• Consequences

• For those who are low geared and well established, this might give rise to a minority monopoly resulting in increased rents in the absence of significant competition.  Paradoxically, since improving competition is one of the aims of the directive calling for reform, the opposite effect is likely.
• This will come at the expense of the majority of landlords who might ill afford mortgage redemptions in the absence of the BTL model. 
• In turn, this could precipitate the sale of entire property portfolios. 
• Were this to occur, an unplanned property sale would mean a massive CGT liability could wipe in a stroke any property portfolio like a downward vortex.
• Consequently, tumbling house prices could erode the savings even of non-investors. 
• Renters will also be affected if they are evicted and unable to find alternative housing. 
• A double whammy awaits, causing a double dip too many.  Catastrophic consequences for the British economy entirely 'unhomemade', by 'Euromade' mania. 
• This is compounded by the cost of mortgage transfers, if they are available. Some borrowers may have lost credit status since mortgage inception, preventing their securing a transfer to any 'responsible' lender. Their only option is to redeem. Meantime for some, particularly in the north, equity falls means a shortfall even after redemption.
• A mass exodus of BTL mortgages would see creditworthy borrowers relinquishing low rate MX deals ahead of any approaching deadline introducing any new rules.
• Lenders will not have sufficient funds and will selectively ration whilst raking in new business. Fees and interest rates will mirror their temporal monopoly.
• Further, borrowers imprudent enough to have fixed-rate mortgages will also get clobbered with early redemption penalties.
• The problem goes much deeper.  See separate article in conjunction with this one for the impact for MX customers - this is almost worse, because it is not a proposal it is reality now
• See also:
• Draft Directive on credit agreements relating to residential property

Cannabis farms:

Capital:

• Capital is the value of bricks and mortar and fixtures as opposed to Revenue which is the rental income

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Capital Gains Tax:

• Tax payable on the sale or transfer of property after any exemptions.  A house formerly occupied by an owner will normally automatically be exempt from the first three years of any gains.  Living in a house whilst renovating is not classed as residency!

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Capital Repayment Mortgage:

• see mortgages

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Case Law:

• Judge made law case by case
• also known as Common Law handed down by judges
• Compare Act of Parliament
• Acts of Parliament must be upheld and enforced by judges
• However, Acts are not always clear
• Judges interpret what parliament intended when enacting. 
• Judges may disagree with each other resulting in cases starting in:
• County courts being overturned in
• Crown Courts and reversed in the
• Court of appeal and reversed again in the
• House of Lords before being overturned in the
• European Court of Justice.
• Senior judges must be followed by less senior judges unless they distinguish between cases with different principles.
• The case of Street and Mountford below is one such example of case law.

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Certification:

• Includes documents certifying the safety of e.g. gas, electric, fire safety, EPC, etc.

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Chain:

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Change of Use:

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Check-in tenants:

• The process of enabling tenants access to their new rented home and ensuring all is well.
• Ensuring all keys are provided and are opperational with explanations on how to opperate (lift handle before turning key to lock etc.).
• Ensuring tenants have sufficient information to opperate the variety of appliances - in particular the more complex things like the boiler which often has several components required to be synchronised before the water and heating will work as desired.
• Ensuring TV controls are easily understood is another point.
• Internet controls can be complicated with passwords required to connect.
• Pointing out the location of isolating valves and switches is important to avoid a flood, electric shock and gas poisoning.
• The simplest way to enable communication for most is by providing a clear manual - "Welcome Pack".
• Establishing the condition of the property and that it will be compared with the condition at the end of the tenancy.
• Securing any signatures and advising the requirement to report any contra findings quickly or within a reasonable time from occupation to discover an discrepancy in the inventory compared with reality.

Check-out tenants:

Class C:

Cleared funds:

• When transferring money from a tenant or landlord account to an agent, money leaves the donor account but may take time to be received or visible in the agent's client account.  Letting rules require compliant letting agents to ensure they are in receipt of cleared funds prior to acting in reliance of those cleared funds.  An agent may be held negligent and responsible for the consequences of acting prematurely.  The temptation to do so is heightened by the pressure to act quickly in an emergency - agents must remain calm and wait!  See retention  If a letting agent stands as surety even for a small amount it acts contrary to all the rules!  Apart from the rules this is lending which requires a lenders license.

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Clearing UCAS:

• The process of finding available university places in mid-August following release of A level results is called Clearing. Actually available between July and September, it assists those without a university place to find a suitable vacancy.  Anyone applying to university will have completed entrance application forms and visited a number of first preference campuses.  Should an applicant not secure the required A level grades for entry then and alternative search for a place via clearing is the last resort.  Universities and undergrads are matched to mop up remaining vacancies.  First year students normally only secure accommodation in halls of residence if the university is the students first choice.  It is thus common for clearing students to rent from private landlords for the whole three years.  There are some suggestions that degree courses could be done in only two years.  If so this would seriously jeopardise the letting profession in all university cities like Canterbury.  Universities would then accommodate students for 50% of the time students attended university, as opposed to the current circa 30%.  This would worry most landlords and the consequential displacement of the letting market.

Cleaning / Professional Cleaning:

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 Client:

• Includes firstly the landlord client, and secondly to tenant customers often treated as clients.
• The agent acting has a duty of care to both. 
• The first duty is owed to the landlord whose conditions for letting must be applied to any subsequent tenants. 
• Beyond this, the duty is unbiased.

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Client Instructions:

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Client Account:

• This is actually a client-bank-account held in trust by agents on behalf of clients.  
• It is the account into which all clients money is placed and ring-fenced and
• Should not be used to prop up the cash flow of ailing businesses during lean times.
• In the event an agent goes bust the tenants and landlord client can quickly receive the return of their money from this secure account.
• This should include any student or tenant's:
• deposit or
• retention for maintenance as well as
• rent payable to a landlord client.  
• When funds clear, money should quickly be forwarded to recipients when due.
• The balance of a client account should never fall below the total amount owned by, or owed to,
• all the clients. 
• The agent is in a unique position of trust.
• To betray this trust by utilising the funds for other than the purpose promised is not merely theft but the more serious deceptive act of fraud.  This is a criminal offense carrying a potential custodial sentence. 
• Ironically such accommodation is rent free, but not recommended!

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Client Conflict of Interest:

• Some landlords are also Letting Agents- LANLA's. These  Property professionals own one house or a personal portfolio of homes, whilst  simultaneously letting others on behalf of their client landlords. This might  give rise to a conflict of interest.

  For example: imagine that all but two houses have been let. The student viewing season is almost over. The first of the two homes is owned by the LANLA; whilst the second is owned by his client. A group of  students, having viewed both, cannot decide, since they are equally suitable.  Now they seek guidance on which to choose? Does the LANLA flip  a coin or ask the prospective tenants to choose? Is he able to resist the  temptation to prioritise his own interests? The following might avoid any such  conflict and establish integrity.

• Any ethical dilemma is quickly resolved by ensuring the personal portfolio always takes second place. Such policy must be decided upon prior to the  predicament. Human nature is self-seeking until harnessed by a highly developed  conscience.
• The question "yours or mine?" i.e. which one should be marketed first; ought  never to arise.
• If the LANLA works hard and markets accommodation properly  he will normally let the remaining personal house in due course, whilst  retaining his integrity meantime.
• Ultimately this is not merely the most ethical, but also the most  commercially advantageous approach.
• The LANLA will receive commission as agent for the client, in  addition to the rent from his personal portfolio. Win: Win!
• Showing preference risks not merely losing any commission (in the event the  house is slow-moving and the client defects), but moreover the LANLA   's reputation.
• Always favour clients in the event of any such conflict.
• The advantage of using a LANLA with such dual experience  is likely to be reflected in the additional service provided.
• Some letting agents do not share the same insights of a landlord.
• Similarly, most clients do not share the extensive knowledge of an  agent.
• With a foot in both camps the LANLA will likely enjoy a more  balanced understanding, sharing more empathy with the needs and personal  concerns of a fellow landlord.
• In such scenario it may be a simple matter to allow tenants to choose for  themselves, being careful not to influence either way.
• If tenants have no preference then it is best to rent the client's house  first!
• The above situation involves an ethical choice of properties by the LANLA . There are times when the dilemma is not the property but the  tenants.
• Almost 20 years ago, a similar situation arose. In this scenario two tenants  were keen to secure either of two houses; neither had a preference. Perfect -  what possible conflict could exist? Two tenants and two houses where is the  dilemma?
• Both houses were aimed at professional tenants. Both tenants were  professionals. One tenant was a recent graduate; the other was an aging  builder.
• Again, the first house was owned by the client whilst the second was owned  by the LANLA.
• Statistically, the recent graduate was then less likely to be as reliable a  tenant as the gruff looking builder.
• The client's first impression was a prejudicial misimpression!
• The builder's physical appearance resulted in the client ignoring the  statistics favouring the more presentable graduate.
• Having provided the client with the tenants and statistics, the client was  immediately persuaded, in his own mind, that the erudite graduate was the better  bet, despite evidence to the contrary.
• The client was allowed to select: "It is entirely your choice; if the client  selects the builder on the left; then the LANLA will accept the  graduate on the right, for his own property" and vice-versa.
• The builder went on to reside in the LANLA's house for years;  whilst the graduate's stay at the client house was short-lived and problematical.
• The former was a model tenant who was never in arrears, whilst the same could not be said for the graduate. Never rely merely on a pair of eyes - always analyse the facts. Always act with integrity even if this means losing an opportunity, at least you will not lose sleep!

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CMP Client Money Protection:

• This is a form of insurance designed to protect client funds.
• Normally provided as part of certain regulatory bodies membership including:
• ARLA, UKALA, NFOPP, NALS, RICS and The Law Society.

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Common Household:

• A self contained shared home rented by two or more tenants jointly and severally under one tenancy.

Common-hold:

Common Parts:

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Common Law:

• That which Judges have made law handed down by the judiciary ( judge made law - case by case - case law) compare Statute Law and Statutory Instruments

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Common Law Tenancy – CLT:

• The law is subdivided into two parts. 
• Statute (provided by Acts of Parliament) and
• Common Law (provided by cases presided over by the judiciary). 
• The latter covers this type of tenancy. 
• CLTs are suitable for non- ASTs
• I.e. company lets,
• Tenancies over £100,000,
• Lodger with owner occupier i.e. resident landlords,
• Tenancies under £250pa (£1000 London) etc. 
• Common Law rules apply to any such CLT eviction and not AST rules. 
• S.8 and S21 notices are not available for evicting CLT tenants.

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Commencement Date:

• The date the tenancy starts.
• Leydon Lettings normal start date is 1 July in any year.

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Company lets:

• A non AST is used for letting to companies and some non- companies - see CLTs.

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Comparables

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Compatibility of house-mates:

• See Mature Students
• PGCEs are unlikely to be compatible with undergrads.
• Politics and religion need not divide, tolerance and consideration are more likely to determine whether a group are compatible.
• Age can be important.  Younger students are more likely to want to play loud music and to want to return home late potentially disturbing any older housemates.
• One cannot discriminate on the grounds of age, but a group of young girls cannot reasonably be expected to share a house with a middle aged man.

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Complete Completion, Completion of Sale:

Conflict of Interest:

Consents:

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Consideration:

• Most would think of this as the requirement to be mindful of others especially living in a community extending from your housemates to the neighbours in nearby properties.  Whilst this is increasingly important with the expansion of HMO communities displacing long term residents there is another meaning in relation to a contract:
• Money or value - e.g. we agree to a discount of rent during the summer vacation for new tenants yet to arrive in say September in consideration of your agreeing to us renting to holiday makers in your absence.  Voila!  Returning tenants still get the discount but do not have summer lets so their possessions can remain.  Not all homes are discounted.
• See also Estoppel
• Consideration can be acts or ommisions in response to a promise and relied upon by the other to their detriment.

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Contact:

S.48 of the Landlord and Tenant Act 1987 requires that a tenant is provided with an address where notices can be served on the landlord. This address must be in England or Wales and can be the name and address of any managing agent.

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Contract:

• In Lettings this is a tenancy, commonly called an agreement and most often an AST - but not always.
• A contract can created verballly, in writing, or by conduct indicating a contract and a combination of these.
• To be valid, a contract must include three core elements:
• Offer - must be unconditional.
• Acceptance - "Yes! I agree."
• Consideration - money or money's worth.
• When all three are present an agreement exists.
• A counter-offer eliminates any previous offer.
• What constitutes each element is debatable.
• What can appear to be an offer might be merely an invitation to treat - window and web adverts.
• In addition, to be valid the parties must: 
• have the legal capacity to enter a contract - e.g aged over 16 etc.
• intend to enter a legally binding contract.
• Ending a contract: (mnemonic FAB-P)
• Frustration of the contract due to ancontrolable events such as fire, flood, stormdamage etc.
• Agreement by the parties - mutually
• Breach - when either party fail to perform a core obligation.
• Performance - when the contract term ends.
• A tenancy contract to rent must include details of the 3Ps:
• Property - address
• Price       - rent
• Parties    - landlord, tenants and any agent.
• Remedies for breach of contract include:
• Specific performance - enable the tenant to rent
• Injunction - prevent the mischief causing the breach
• Damages - compensate the tenant for non performance.

Contractor or Tradespeople:

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Conveyancing:

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Correspondence Address:

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Core Terms:

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Council Tax:

• Individual tenancies are treated differently to joint tenancies.
• Students are treated differently to professionals.
• Full time students are normally exempt.
• Part-time students are not normally exempt.
• A house fully occupied by benefit recipients who are all otherwise exempt ironically may nevertheless give rise to a Council Tax liability if they have individual tenancies and not joint tenancies.
• Likewise a group of exempt students on individual tenancies would not constitute a student exempt house as this is classed as an HMO for which no exemption exists.
• The responsibility to pay council tax arising from individual tenancies rests first with the landlord although this can be passed on to the tenants via proportionally increased rents.
• If the tenants are not Joint Tenants this is likely the case
• If a joint tenancy exists, the tenants; not the landlord, are jointly responsible for payment of C.T. at the band rate applicable.
• If the house is solely occupied by "qualifying students" they are likely exempt.
• Should circumstances change and a student drops out of uni., but remains in residence, then the house no longer has student exempt status.  However, only the non-student in this instance would become liable to pay C.T.  
• If only one resident is a non student then a 25% discount would apply reducing any liability.  However, band C equates to say £1200 pa in Canterbury and if this were the responsibility of just one tenant this is £100 per month less £25% = £75
• Most houses are banded from A, B, C etc with A the cheapest and the last letter the dearest.  So if you live in a posh house and the house loses its student status, it could be expensive if you live in band F.  
• Most student houses are located in band C.  This fact is rarely relevant until a non student becomes resident.
• Should students take in a lodger unknown to the landlord or agent and this person is not deemed to be exempt then  this could give rise to a C.T. liability.
• Ultimately all residents are liable to pay unless exempt.
• CT Exemption is not automatic, it must be applied for by asking the uni. registrar for a certificate of exemption.
• Failure to provide certification to the City Council will give rise to a liability.  
• The City Council may backdate exemptions up to 6 months and occasionally longer if given good reasons for the delay e.g. bereavement of close family member.
• Should circumstances change tenants must notify the City Council within 21 days, e.g. loss of entitlement to discount. The discount is applicable only for the duration of the course and this may last say 3 years.  
• However, if students remain in residence beyond the last day of their course then council tax is payable on a daily basis by all those still resident.  
• This is a good reason to leave quickly following the course termination date.
• In the event the house suffers a void (including summer vacations), then owners become liable pro-rata, on a daily basis, with 90% liability - until a new tenancy is created.  New rules from 6 April 2013 indicate it will soon be 100% liability with no reduction. 
• It is ironic that just when a landlord suffers most he suffers yet more! 
• The policy behind this is not merely financial but to encourage maximum occupancy of housing stock to reduce homelessness.
• Any non-exempt or non qualifying student substitute tenant could affect whether C.T. is payable in Canterbury see:
• http://www.canterbury.gov.uk/main.cfm?objectid=4500
• The tax band for your area can be found on the site:
  http://www.voa.gov.uk/cti/InitS.asp?lcn=0 
• Just type in your postcode to reveal the band:
  http://www.royalmail.com/postcode-finder/ 
• In Canterbury CCU and UKC students' exemptions can be verified by The City Council if they have your I.D Card details. Leydon Lettings normally provide a table with all tenants' details for this purpose but students should not rely on this and should submit their own application.

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Counter-Offer:

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County Court Judgement (CCJ):

• If debtors owe rent or other monies a landlord can apply for a County Court Judgement (CCJ), through the County Court in the location of the debtor.  If the debtor tenant fails to pay, then the landlord must apply to the court for a warrant of execution - a bailiff will attend the tenant's residence and seize goods to the value of the debt. The CCJ remains on the register for 6 years  if not paid within 30 days.  This will make it difficult for the debtor tenant to get a loan or a job.

Covenants:

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Credit Checks:

• Tenants must be credit worthy.  This is established by vetting with credit checking agencies.  
• See the main referencing checklist and important Lifestyle referencing.

Credit rating or Credit status:

Damages (2):

1. The damage caused by say a tenant
2. The legal remedy of damages to restore the injured party as near as possible to his position before injury.  
3. Injuries include physical, psychological as well as financial losses.

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Data Protection:

• Any landlord or agent must be registered if they retain potentially sensitive information.
• In addition landlords have a duty to protect information and their tenants by following data protection rules. http://www.ico.gov.uk/for_organisations/sector_guides/business.aspx
• Landlords and tenants:
  Disclosing information about tenants  
• This is a good practice note answering some frequently asked questions from landlords about :
• How the Data Protection Act applies to them.
• The information they hold about their tenants,
• Information held on their behalf by a letting agent.

Declination of prospective tenants:

Deeds:

Deed of Assignment of Tenancy:

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Direct Repayment Mortgage:

• The means of re-paying a mortgage loan (see also interest only repayment)
• Say you buy a house for £100k. 
• Say you borrow £75k
• You thus provide £25k deposit.
• 75% LTV = 75% of debt you owe to the lender and
• 25% of the deposit is the amount you provide to buy a property.
• In this instance you repay the mortgage by direct repayment.
• This means the mortgage loan decreases inversely proportional to any equity increase  (amortization). 
• This continues throughout the term until the mortgage is repaid to the lender and you own all the equity. 
• This is in contrast to an interest only mortgage
• The loan remains the same and
• You repay using an alternative means e.g.
• You sell and downsize, and
• Rely on any inflationary property increase in value to repay the loan. 

Disabled Tenants:

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Discrimination of tenants:

• Discrimination was addresses by the Equalities Act 2010
• This Act consolidated all previous discrimination Acts.
• Illegal on the grounds of race, religion, colour, ethnicity, sex or disability.
• Agents and landlords may be obliged to carry out reasonable adjustments for disabled tenants e.g. grab handles. Landlords are not normally obliged to make major alterations to assist the disabled although many do.
• Note that age discrimination is only prohibited by employers.
• When letting - a group of 20 year old girls seeking a housemate are entitled to exclude anyone based on any age, sex, or e.g. personality.  This is logical, otherwise tenants would be unable to choose their housemates.  Letting agents would be unable to reject unsuitable prospective tenants.

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Dilapidations:

• Damage to contents and property usually at termination of the tenancy compared with the inventory upon arrival excluding 'betterment' and any normal wear and tear.

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Dominant Tenement:

Double Agent:

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DPS: Deposit Protection Scheme:

• Two types:
• Insurance and custodial:
• Insurance backed,
• permits landlords to retain and return deposits.
• Custodial,
• requires deposits to be passed to independent custodians to retain until termination of the tenancy.
• Very strict rules require landlords to
• provide prescribed information to tenants within 30 days
• or the deposit to be registered within 30 days under
• the Localism Act 2011 applicable from 6 April 2012.
• Landlords accepting deposits will, from 6 April 2012 have tighter rules of compliance or
• face a minimum fee of 1 times the value of the deposit
• Or up to three times the value for serious breaches.
• In addition landlords can be sued for up to 6 years even after the tenancy ends where landlords return deposits but fail to provide
• the prescribed information and or
• Register deposits within 30 days.
• And that's not all - the section 21 (Accelerated Notice) is not available if rules are breached, so no sympathy from the courts.
• Effective from 6 April 2012.
• Deposits taken prior to the protection scheme was introduced are not regulated, i.e. pre 6 April 2007 UNLESS,
• you have renewed meantime.
• No renewal requires no re-registering.
• So a continuing periodic tenancy originating before 2007 is not required to be registered until first renewed and upon each renewal thereafter.

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Dropping Out:  

• A void can occur if
• a tenant swops university or
• leaves prematurely resulting in a vacancy within a home.
• Normally the departing tenant and remaining tenants are jointly responsible for
• finding a replacement or
• paying the rent.

 See also Deed of Assignment, Subletting and Substitution

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Drugs, Students and Housemates:

• I do not take illegal drugs so I have no need for concern - right? Wrong? If you share accommodation with others, students, professionals, benefit recipients, etc do you imagine your innocence will protect you completely? Do you know if they are taking drugs? Or, you may be aware but consider it is their life to do with as they please. If this is your view then read on, you could not be more deluded!  Drugs - Nothing to do with me... is it... officer?

Due diligence:

• Every landlord and letting agent or estate agent has a legal and moral duty to conduct themselves and their businesses responsibly.  Failure to do so could result in contractual or criminal wrong doing.  Disciplines and checklists are an effective way to ensure important matters are not overlooked.  Certification: gas, electric, fire safety, EPC, etc could be allowed to expire without adequate disciplines and checks.  This is part of due diligence. 

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Dwelling:

• Any residence or place to live.

Easements:

• These are legal interests in land ensuring judicial certainty in the event of disputes (i.e. not merely equitable interest allowing judicial discretion as to the outcome).  
• Think of Legalease-ments (jargon) as op. Equitable Interersts
• Two Types of easement, Usage and Granted:

• 1. Entitled by use - uninterrupted for 20 years without
• Concealment (Secrecy
• Force
• Permission
• (the mnemonic is a lettings software program)
• 2 Expressly granted (i.e. documented upon sale of property in the property deeds).
• Usu. involves two separately owned portions of adjacent land with a dominant right over the owners land by the non-owner.
• This right creates a Dominant and Servient Tenement.
• The dominant right benefits the non-owner
• The servient tenement suffers the burden of the dominant non-owner using the right of way to access another nearby portion of land.
• Such situations are usually clear in the deeds but can cause neighbour diputes when unclear.  
• The Law of property Acts 1925 provide the rules.
• Examples include rights of [L.A.W.S.):
• Light
• Aqua (Water)
• Way
• Support e.g. a supporting wall.
• See also restrictive covenants

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Electoral Role:

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EPCs:  

• Energy Performance Certificate.
• Renewable every 10 years.
• Must be included in marketing material from 6 April 2012 or
• Face fines and loss of reputation.

Energy Ratings

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Enforcement:

• In the context of lettings this is the legal processes required to ensure a tenant complies with the terms of a tenancy agreement:
• both during and after termination of the tenancy term.

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Enforcement options:

• Depending on the debtors financial means: Landlords might access various means of enforcing eviction - with bailiffs; or, enforcing a debt (rent or bills) via distraint of goods following securing a County Court Judgement (CCJ), again with bailiffs if selling the tenants goods or guarantor's possessions to recover the debt.  Note, distraint or distress, in this context, is the seizure of property in an attempt to secure payment of rent owed.
• Where the tenant owns no goods but has third party or other means to pay, then a judge can grant a landlord with a  garnishee order, e.g.
• attachment of earnings order - with the employer obliged to deduct regular payments from wages and to pay deductions to the court and thence to the landlord. 
• Where a tenant owns property, say a house (rare), then a charge can be placed at:
• any third party land registry
• so that when sold the landlord is paid before any remaining sale proceeds go to the owner of the property (the tenant of the landlord's house).

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Enforceable / unenforceable:

• In this context contracts which can and cannot be enforced by law.  
• Some interesting examples include: 
• An AST eviction: even after the agreed term expires, it cannot be enforced within the first 6 months of the tenancy. 
• Alternatively, how about this one: An accelerated notice to quit S.21 is unenforceable if a landlord fails to license a licensable property to which the notice relates. 
• Similarly if the tenancy expires eviction cannot be enforced until expiration of the notice period. 
• AST NTQ should be sent at least two months prior to the end of the initial term of the tenancy to be enforceable. 
• After the expiry of the tenancy a different S.21 notice is required and the tenancy reverts to an AST  periodic tenancy.  Again the minimum statutory notice is required to enforce.
• The Limitation Act normally prevents the enforcement of a debt after 6 years.

Erasmus Students:

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Equality Act 2010 - section 15 - defence to eviction:

• Effective 1^st October 2010
• Should a landlord seek possession from a disabled tenant whether or not the tenancy agreement has been breached, extra due diligence is required.
• Prior to The Equality Act there was no defence to possession following service of a valid s21 Notice to quit under the Housing Act 1988 - not necessarily so any more.
• Under Section 15 a disabled person is discriminated against if treated unfavourably due to something arising in consequence of the disability and the person allegedly discriminating cannot demonstrate that they acted proportionately to achieve a legitimate aim.
• A landlord’s right to end an AST using the statutory notice procedure if the occupant is disabled is compromised.
• If a landlord knows of a tenant disability but neglects to ensure that the tenant grasps the effects of a s21 notice, then the landlord may be deemed to discriminate against the tenant, since the tenant may lack the capacity to comprehend.
• Ironically, if landlords are unaware then it is not discriminatory, i.e. ignorance is bliss, but paradoxically not negligent.  The landlord must have subjective knowledge of the disability to be deemed to have discriminated. Where a landlord demonstrates he acted proportionately to the effects of the disability he has not discriminated.
• London Lewisham BC v Malcolm, House of Lords is the main case upon which s15 was later based.
• Schizophrenic tenant took in lodger contrary to rules resulting in eviction.

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Equity (two meanings) :

• EQUITY 1st meaning

• The amount of capital (value) remaining in a property after any mortgage loan is deducted. 
• Say you borrow £75k and
• You provide £25k deposit.
• 75% LTV = 75% of debt you owe to the lender and
• 25% of the deposit is the amount you provide to buy a property.
• In this instance the 25% is known as the equity or the amount remaining after any loan is deducted. 
• A direct repayment mortgage means
• the loan decreases inversely whilst the equity increases (amortization). 
•  An interest only mortgage in contrast is where
• The loan remains the same for the term of the loan. 
• The equity could, but is unlikely to, remain the same.  
• The equity can vary with house price value fluctuations via
• economic circumstances or
• improvements made to a property via
• renovations or
• dilapidations experienced by the lack of  maintenance.

• EQUITY 2nd meaning 

  A branch of COMMON LAW  EQUITY is about fairness.

• Under the rules of equity a judge can award 3 remedies:
• Think of the name S.I.D.:
• Specific Performance by discretion
• Injunction by discretion
• Damages as a right
• Where there is a conflict between common law rights and equity then equity always prevails. 
• Equity is a discretionary remedy, not an automatic right or entitlement.
• Parties acting without integrity are unlikely to be permitted to rely on equity as a remedy.
• I.e. "Equity must come with clean hands"

ERP

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Estoppel and promissory Estoppel:

• This is an equitable legal means used by the judiciary to prevent injustices.  
• Say e.g. a landlord agrees to his tenant leaving prior to the expiration of the tenancy without the need to pay the remaining rent..
• Under the strict rules of the tenancy agreement the landlord is entitled to claim the unpaid rent for the remaining tenure.
• The landlord would be prevented from so enforcing the contract by estoppel.
• An agreement requires at least three things to be valid: offer acceptance and consideration.
• The offer and acceptance is straight forward, "I wish to leave early will you release me from the contract?" "Yes!"
• The consideration is normally rent, but in this case it is "acting in reliance upon the landlord's promise to allow the tenant to leave prematurely without paying rent otherwise due":
  1.They tenant subsequently seeks alternative accommodation  and
  2. By giving up existing accommodation and paying rent elsewhere acts to his detriment.
• The doctrine of promissory estoppel is applied thus:
• The landlord will be estopped (prevented) from enforcing his claim for the rent to which the landlord might otherwise be entitled.
• This doctrine of Promissory Estoppel is founded on three core elements (Why is it always three?):
  1. The landlord's promise, representation and or assurance made to the tenants
  2. Reliance upon it by the tenants
  3. The tenants suffered loss or detriment as a consequence of the tenants reasonable reliance.
• In these circumstances such agreements are often oral.
• Evincing a claim need not necessary require documentary evidence.
  Parol Evidence permits spoken promises to be admissible evidence and in civil cases is based on the balance of probabilities: 51% i.e. more likely than not, unlike criminal evidence, "beyond reasonable doubt."

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Eviction:

• The legal process required to end a tenancy usually where the tenant defaults in some way with regard to tenancy obligations.  A court order is required.
• See protection from eviction.

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Excess:

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Exchange of Contracts:

• The point at which a buyer and seller are legally bound to complete a property purchase or be subject to paying compensation.
• A similar exchange between landlord and tenant is also binding.
• Prior to this point all dealings as said to be 'Subject to Contract' i.e any pre-contract dialogue is not yet binding

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A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

FICO:

• Financial Intermediaries and Claims Office
• See NRL tax

Fiduciary Relationship:

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Fines:

• Under the Localism Act 2011 if landlords fail to register or protect tenants' deposits they face a fine of up to three times the value of the deposits! And fail to provide the prescribed  information within 30 days of receipt of deposits and landlords can be sued up to six years later, yes even following a tenant's departure.  Say an ex tenant finds themselves in future penury, perhaps unable to buy a new car?   "I know, what is my old landlord's name from five years ago?  I'll get them to pay!"  And  pay they will.  Pay day might take on a new meaning, deposit day.
• Fail to market a property without attaching an EPC- another fine!  And, you  may no longer be a "fit and proper person" to licence a property.
• Fail to update a gas safety certificate - fine or worse! Go to jail, do not  collect £200 instead pay many times more in compensation to your victims!
• Fail to Licence a Licensable property - fine! And, denied use of  section 21 Accelerated Notice to Quit!
• Fail to comply with Council Improvement Notice - fine or worse!
• Fail to register for Data protection via ICO - fine!
• Personally this is all just fine by me. As a landlord and letting agent, I  am tired of being tarred with the same brush as non-compliant landlords.

• Localism Bill 2010 from 15 November 2011 became

• The Localism Act:

• A five  part Act, one of these parts - housing affects Deposits:
• How will new rules affect landlords / agents?
• Landlords accepting deposits will have tighter rules of compliance or face a  minimum fee of 1 times the value of the deposit or up to three times the value  for serious breaches. Starting to feel not so fine? There's more!
• In addition, landlords can be sued for up to 6 years after the tenancy ends  where landlords return deposits but, fail to provide the prescribed information  and register deposits within 30 days.
• And that's not all - the section 21 (Accelerated Notice to Quit) is not  available to non-compliant landlords, so no sympathy from the courts if your  tenants do not pay their rent!
• This came into effect on 6 April 2012. Letting agents and landlords that do  not take deposits are unaffected.
• Deposits taken prior to the protection scheme was introduced are not  regulated i.e. pre 6 April 2007 UNLESS you have renewed meantime.
• No renewal means no need to register.
• So a continuing periodic tenancy originating before 2007 is not required to  be registered until renewed
• Localism Act re EPCs:
• A remnant from Hips, EPC rules changed from 6 April 2012
• For now it is important that landlords and agents provide an EPC with all marketing material or face fines and loss of reputation.
• From 2018 under the Green Deal any property with a certificate rating below  'E' will be banned from the lettings market. I.e. 'F' and 'G' will be  un-lettable without additional work to raise the rating. Leydon Lettings have no  properties rated as low as this so is unaffected

Fire Doors

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Fire Risk Assessment:

• The following from http://www.firesafe.org.uk/houses-in-multiple-occupation/ will assist you and is the template Leydon Lettings use to assess any risk. The regulatory reform (fire safety) order, became effective from 1st of October 2006.  Cherwell Fire Safety 0800 998 7958 advertises as operating in Canterbury but do not appear to have an office south of London.  http://www.cherwellfiresafety.co.uk/index.php  
• Also see Fire Security based in Aylsham 01304 842317   http://www.fire-sec.co.uk/services/
• See also HHSRS considerations in our glossary.
• Fire Precautions
• The document Guide 3 – Sleeping accommodation should provide all the information you require to conduct a Fire Risk Assessment.
• The Responsible Person (RP) for managing should:
• Complete a fire risk assessment and consider the fire precautions in the common area and eliminate or reduce to the lowest possible level
• Consider escape routes which may require the provision of a fire barrier between the common areas and the living accommodation to create a protected route to a place of ultimate safety.
• Consider the need for a fire detection and warning system and should it be extended into the living accommodation.
• Consider the need for emergency escape lighting.
• Consider fire-fighting equipment and facilities.
• Consider the need for signs and notices
• Consider recording, planning, informing, instructing and training which will require producing a fire action plan.
• Maintenance
• Any fire precautions provided will need to be maintained and this will not cause problems in the common areas. However, if they have been extended to the living accommodation this may cause problems. This is because domestic dwellings are exempt from the order and the tenants cannot be forced to co-operate with the RP. Therefore it is important that the tenancy agreement has a section devoted to Fire Safety that lays down duties the tenant has to abide by. This should include permission for the RP and any persons appointed by him/her to enter the living accommodation to carry out maintenance of any fire safety equipment.
• A Log book recoding incidents of fires or alarm soundings and testing should be kept in all Mandatory Licensed properties.
• This said all properties should comply with HHSRS rules.

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Fixed Term:

• A Fixed Term tenancy describes a tenancy with pre-established start and end dates.
• This in in contrast to a periodic tenancy which continues on a month by month basis following the end of the fixed term, without the requirement to renew the tenancy.
• The initial fixed term of a tenancy can be as little as say six hours, but the landlord could not legally enforce any eviction if the tenant decided he wished to remain for say six months.  
• Meantime any pre-arranged subsequent tenants would be prevented from occupation - such extended tenancy could legally last 6 months.  
• There are ways to motivate tenants to stick to the original term agreed.  By providing in the contract that the rent increase 10 times the original rent should the tenant leave after the end of the fixed term agreed.  
• So although the landlord would be unable to evict the first tenants or accommodate the new tenants for at least six months, he could sue the overstaying tenants for the aditional rent.  
• This additional rent might enable the landlord to accommodate the disappointed second group of tenants e.g. in a hotel - assuming the landlord is sucessful in suing the late leaving first group of tenants.

Footprint 2 (Credit Checking):

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FSBO For Sale By Owner:

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Forfeiture:

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Forwarding Past Tenants Mail:

• See Mail

Freeholder:

Frequency or Duration:

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Furniture:

Furniture and Furnishing (Fire) (Safety) Regulations 1988 as amended 1989 &1993 is the act covering furniture.

From January 1997, it became unlawful for landlords to supply upholstered furniture in rented properties which fails to conform to the 1988 standards
Upholstered furniture manufactured before 1988 may contain foam capable of quickly giving off lethal toxic fumes. New standards require furniture fillings to include safer materials also covered by material with greater fire resistance.

Covered by the regulations are:

Upholstered seating, furniture, beds, mattresses, headboards, sofas and sofa-beds, futons, scatter cushions, seat pads, loose and stretch-covers.

New Furniture purchased after 1988 must be labelled to indicate compliance. Since 1993 it became illegal to sell second-hand furniture which does not comply.  Pre-1950s furniture is exempt from this law. 

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Further Advance

• A  Further Advance refers to further borrowing on a mortgage subject to sufficient equity being available.  In inflationary times such advances are commonly used as deposits to enable further purchases.  See leverage and gearing

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G

Gas Safety Register:

• The official list of qualified gas engineers permitted to work safely and legally with gas and to test gas appliances.  See http://www.gassaferegister.co.uk/ and certification

Gas safety:

Gazumping:

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Grounds for eviction:

see s8 ... Notice to Quit

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Guarantor or Parental Guarantor:

• Guarantors agree to be responsible for rent, bills and damage in the event the tenant fails to pay.  Most students have little history indicating creditworthiness and so this compromise protects the interests of landlords who would otherwise be reluctant to let to students.

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Guide Rent / Guide Price

Harassment:

• In a lettings context this describes a landlord who acts inappropriately, knowingly or innocently to the detriment of tenants or contrary to law.  Some landlords deliberately seek their unwanted tenants' eviction, by making their tenant's lives difficult.  Constructive illegal eviction.  see Protection from Eviction Act 1977

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Halls:

• Halls of residence as supplied by universities and educational establishments like language schools. 
• These institutions invariably enjoy exemption from Council Tax. 
• They also are outside the AST status and students have less legal rights compared to those resident via AST private landlords.

High Rent Tenancies:

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Holiday Lets:

• Holiday Lets are governed by a unique letting agreement not  protected by the same rules as an AST - instead it is similar to CLT rules.
• The temporal nature of such a letting agreement does not warrant the same protection as a property which is the only or permanent residence of the tenant.
• There are potential pitfalls for unwary landlords letting a property for a short time erroneously using an AST agreement instead of a holiday letting agreement. 
• Remember, the minimum enforceable period of six months must expire prior to seeking court assistance to evict via an AST tenant - whatever shorter term might be agreed at the outset!   I.e. a landlord and tenant can agree a one month tenancy, however, if the tenant decides to remain for say six months, then the law will not allow the landlord to hold the tenant to his promise to leave after say four weeks - the landlord is stuck with the tenant.  Fair? No! Legal? Yes! 
• The point of stating this is reflected in the situation when the next tenant cannot move in because the previous tenant is still sitting there!  Beware of any potential inadvertent overlaps!  If there is a risk, use a holiday agreement CLT  not an AST.  Note that it must be a holiday let and not a means to circumvent AST rules - see  Street and Mountford.
• The nature of a holiday let is more commercial than residential.
• The occupants are customers as part of a business
• The rubbish created is commercial and must be disposed of in accordance with separate rules (commercial waste is paid for separately not as part of residential waste).

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Homelessness:

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HomeStamp:

• Originally Canterbury Accreditation Scheme now run by University of Kent UKC and renamed HomeStamp.
• The aim is to promote high standards of student accommodation by working in harmony with representatives from Students, Landlords and Letting Agents.

Housemates:

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Housing Act 1988:

• Step towards deregulation to free up over regulated housing market created by the Protection from Eviction Act 1977 subsequently mitigated by the HA 1988 
• Assured Short Hold Tenancies - ASTs (less security)
• s.20 Notices HA 1988 Notices
• s.21 HA 1988 Notices;
• Fixed  s.21 or periodic term options
• Market rent
• Recover and enforce only after 6 months
• Exception
• Ground 2 HA'88 mortgagee default s.101 LPA 25
• Exceptions: [R.A.S.H.100k) - acronym]
• Resident Landlords
• Agricultural Land tenancies
• Student Letting (only if in Halls of Residence)
• Holiday Lettings
• < £1000 p/a London or elsewhere £250 p/a,
• >£25k p/a now >£100k p/a
• Grounds for eviction:
• 1-8 Mandatory;
• 1  Owner principle former home returning
• 2  HA'88 mortgagee default s.101 LPA 25
• 3 Fixed term < 8 months AND former holiday let
• 4 Term < 12 months etc.
• 5 Minister of religion e.g. manse required.
• 6 Renovation works render uninhabitable
• 7 Former tenant of Deceased
• 8 Rent Arrears according to rent frequency
• 9-17 Discretionary:
• 9 Suitable alternative accommodation available
• 10 Some unpaid rent on date of service
• 11 Persistent late rent
• 12 Unperformed obligation or default tenancy
• 13House deterioration
• 14 Nuisance annoyance / immoral illegal conduct
• 14Aa Tenant departure unlikely to return
• 15 Furniture deterioration
• 16 Employed tenant no longer employed
• 17 Misleading statement inducing tenancy (HA 1996)

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Housing Act 2004:

• The most important points
• This act preceded by some years, the date of implementation.
• Deposit protection from 2007
• s.54 Mandatory Licensing from 2007
• s.55 Additional Licensing
• s80 Selective Licensing

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HMO: Houses in multiple occupation:

Two types -

• large and small:
  
• A small HMO is sometimes Licensable (see licensing):
• 3 or more tenants
• forming two or more households,
• living on any number of storeys,
• A Large HMO is always Licensable:
• 5 or more tenants
• forming two or more households,
• Living on three or more storeys.

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HHSRS:

• Housing Health and Safety Rating System. HA 2004.
• This requires landlords or letting agents to conduct a risk assessment on all properties in accordance with a 29 point checklist and
• to take steps to minimise such risks.

 A. PHYSIOLOGICAL REQUIREMENTS:

Hydrothermal Conditions

1 Damp and mould growth

2 Excess cold

3 Excess heat

Pollutants (non-microbial):

4 Asbestos (and MMF)

5 Biocides

6 Carbon Monoxide and fuel combustion products

7 Lead

8 Radiation

9 Un-combusted fuel gas

10 Volatile Organic Compounds

HHSRS. Housing Health and Safety Rating System:

Space, Security, Light and Noise:

11 Crowding and space

12 Entry by intruders

13 Lighting

14 Noise

C PROTECTION AGAINST INFECTION:

Hygiene, Sanitation and Water Supply:

15 Domestic hygiene, Pests and Refuse

16 Food safety

17 Personal hygiene, Sanitation and Drainage - e.g. includes risk from Legionella - e.g. where water rests in pipes undisturbed for a time at certain warm temperatures bacteria accumulate so when arriving at a property after a possible period of non-occupancy flush toilets since inhaled vaporised droplets can be harmful - particularly to vulnerable people with lowered immune systems e.g. during or following illness..

18 Water supply for Domestic Purposes - following a vacation or upon first arrival run taps for a short time before drinking to ensure fresh and free of Legionnaires' disease.  

D PROTECTION AGAINST ACCIDENTS:

Falls:

19 Falls associated with baths etc.

20 Falls on the level

21 Falls associated with stairs and steps (ensure adequate handrails)

22 Falls between level

Electric Shocks, Fires, Burns and Scalds:

23 Electrical hazards (fit trip switches)

24 Fire (provide smoke and heat detectors, fire blanket etc.) fire certificates evince due diligence.

25 Hot surfaces and materials

Collisions, Cuts and Strains:

26 Collision and entrapment

27 Explosions

28 Ergonomics (human factors affecting ability to function e.g. opening a fire door with no physical strength to push the door open if elderly).  Leydon Lettings has just agreed to alter a period property which is not dangerous per se but presents a risk to the tenant who suffers from dizzy spells.

29 Structural collapse and failing element

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Household:

• This is not about the house, but the number and relationship of the occupants to each other.  
• A single occupant is always only one household.
• If all occupants are related in some way even remotely they are likely classed as Class C3: one single household.  
• An unmarried couple (male of female) is likely a single household.
• If just one person is unrelated to another within the same house e.g. a tenant then the category of housing is deemed to be two households.
• A group of students was once deemed to be a single house hold - not anymore, unless they are also related in some other way e.g. triplets, cousins, uncle, aunt, step parent, half sibling, etc.

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HSE:

• Health and Safety Executive
• This body is responsible for investigating health and safety aspects particularly those potentially dangerous or injurious to residents and visitors and includes trades-people.
• Landlords have a duty of care to provide adequate scaffold for their maintenance people when say, pointing a chimney.  
• In the event of a fall, the landlord is very likely to be responsible unless he can demonstrate that he exercised due diligence.

Iceberge houses - the only way is down!:

• So called because, like the proverbial tip of the iceberg, often most of the property is below the surface - unseen.  
• Ironically this can cause unseen undermining of adjacent properties relying on their neighbouring structures for support.  The Party Wall Act may be powerless to prevent problems.
• Particularly popular in posh areas where land is expensive or simply not available. 
• Planning prohibition can prevent upward extensions but may be unable to deny excavation below ground.  
• This can involve several storeys down and with the use of modern Sun Pipes even caters for natural sun light, albeit without a view unless you have a powerful astronomical telescope or perhaps more appropriately a periscope!
• Ideal for car parking, swimming pools, cinemas, gymnasiums, dark rooms, storage - basically anywhere light deprivation is either important or unimportant, as the case may be, due to the non requirement for a view from a window.

ICO information Commisioner's Office:

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Identification:

• Upon registration at university or college, students receive an Identity card (ID).  This normally provides a student's number and their examination number and a photo stating their university.  This is unique to each student and acts as a reasonable means of verifying that students are who they say they are.  Leydon Lettings as part of due diligence require each student to provide a copy of this document prior to contract signing.

Identity Theft:

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Improvement Notice:

• Where a property requires remedial work to bring it up to an acceptable standard the local authorities can serve an improvement Notice upon the managing agent or landlord.
• Failure to act upon such a notice is a criminal offense.

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Rent Assessement Committee

Independent taxation 

Individual, Individual tenancy:

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Inheritance Tax:

• Tax - payable on the value of an estate including property after deducting any exemptions.

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Inspection (Property Inspection):

• Most properties are inspected quarterly to determine the property is in a safe and acceptable condition.  After tenants arrive this inspection is compared with any previous checks and any repairs noted and attended to.  Notice must be provided in advance of inspections. Final inspections at tenancy end are compared with pre-tenancy arrival to establish the extent of any dilapidations during the tenancy.

Insulation:

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Insurances for Lettings:

• Tenants must consider insurance for personal possessions
• It is possible for landlords to obtain contents insurance on behalf of tenants as a  package.
• Landlord insurance  is not the same as normal domestic insurance, due to the business and third party risks.  
• The insurance company needs to know their exposure to any risks and any vitiating factors.  
• Buildings insurance, covers the normal bricks and mortar and fixtures and fittings.  
• A specialised landlord policy may cover a combination of such risks.
• Public Indemnity Insurance PI is for Agents or those offering advice in a professional capacity in consideration for a service.
• Rent Guarantee is a form of insurance requiring pre-payment of a premium to enable recovery of rent.  In the event of tenant default the insurance company pay the landlord the rent subject to conditions: landlord deposits utilised prior to payout etc..
• Legal Protection is a form of insurance requiring pre-payment of a premium to enable recovery of legal costs in the event of say being sued.
• Client Money Protection CMP is an insurance to protect landlords against agent impropriety, provided the agent is a member of the scheme.
• Deposit Protection can be retained in custody schemes or in insurance backed schemes to ensure tenants are able to recover their deposits in the event of impropriety or fraud.
• HMRC investigation insurance.  Membership of say the NLA comes with cover in the event of such investigations.  These are becoming more likely without fault, but the cost of evincing compliance is onerous and thus insurable.

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Intentional Homelessness:

• Acts or omissions in a tenancy resulting in eviction or unnecessary premature departure can be deemed by the benefits system as voluntary homelessness. 
• This can result in tenants being advised to remain until the landlord has gone to the time and expense of securing a court order thereby delaying eviction to provide respite for the overstretched Local Housing Allowance budget (LHA) meantime. 
• This adversarial approach often creates animosity which might not otherwise exist between a landlord and tenant.

Interest:

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Interest Only Mortgage:

• This is typically a BTL mortgage (although BTL can include capital repayment too).  
• The borrower pays interest throughout the term of the loan - traditionally 25 years.  
• A retired person taking out a loan would unlikely be granted 25 years to pay unless his life expectancy is likely to outlive the loan.
• This is in contrast to a direct repayment mortgage where the borrower pays both interest and capital.
• A slow start mortgage is a compromise between the above two mortgage products.
• One in 8 borrowers claim not to know that they have an interest- only mortgage.  Either they lack understanding or mis-selling is widespread.  Retired homeowners throughout the UK are being refused extended mortgages due to their age and limited longevity to repay.  This is not so common with BTL mortgages but the same phenomenan can face investors too.  For more see articles on this topic.

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Inventory:

• A written and or
• photographic record of
• the condition of a property
• prior to arrival of a tenancy and or
• during and upon departure at the end of a tenancy and
• scheduling any dilapidations
• It is important to take care to ensure that any mid term alterations are documented and if necessary signed by the parties to avoid a conflict at the end of a tenancy.  If the condition is only recorded at the outset, then any alterations made mid-term will not be included in the scedule.  E.g. a new lounge-suite provided towards the end of the tenancy could disapear with the departing tenants.  The tenants cannot be charged as evidentially the suite is not listed on the inventory!

Invitation to Treat:

• This is a term distinguishing the essential elements of a contract.
• To be valid, a contract must have three main ingredients:
• Offer
• Acceptance and
• Consideration (money or value).
• A shop window displaying a property to let, is not, as it might appear, an 'offer'.  This is merely an 'invitation to treat'.  i.e. passers-by are being invited to come into a letting agents office to show an interest in any number of properties, perhaps view some, and ultimately to offer to rent a specific property.
• Even after accepting an offer to rent this is merely an agreement which is not yet legally binding - not until consideration (payment) is also part of the agreement (absent vitiating factors) is there a legally binding contract.  Vitiating factors might include something which induced the deal e.g. by misrepresentation.  E.g. "You told me you were 18, but I subsequently I learned that you are only 14, therefore, you do not have the legal capacity of an adult to enter into such an agreement.  This said, agreements of necessity, made by say a 16 year old can be legally binding as housing is necessity, unlike say buying a car, which is not likely to be.

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J

Joint Tenancy:

• More than one person sharing a property provided in the tenancy agreement. 
• For a full explanation this needs to be compared with a Tenancy in Common - see link which deals at length with this topic

Judiciary

Judicial Revue (JR):

Key Security Code:

• This is a security system to protect the identity of a property in relation to property keys.
• Never identify a property on a key nor provide a clue to the property address by marking the key other than with a secure key code.
• Lost keys can enable dishonest finders easy entry to your house!
• Key storage is best within a secure locked cabinet with access and codes restricted to those who need to know only.
• See also access.

• A Landlord is one who rents property to a tenant for rent.
• The landlord bears ultimate responsibility for complying with statutory and contractual compliance.
• There are different types of landlords:
• Absent Landlords own property in a town, city, country etc in which they are not resident.  The further away the landlords reside the less likely they are able to attend to local issues, promptly or at all.  Unless they engage a letting agent, problems are very likely. Landlords who attempt to manage from abroad are often criticised for not properly looking after their properties.  Neighbours complain when grass is overgrown and maintenance matters are left unattended. 
• Accidental Landlords by virtue of unplanned or unintended circumstances now rent property.
• Resident Landlords provide accommodation to their lodger tenants.  
• Non Resident Landlords live in property let by a landlord who is not resident.
• Most tenants prefer non-residential landlords because the presence of the owner landlord is perceived to impinge upon a tenants freedom.
• Commercial landlords owning retail shops and industrial premises let to business people.

Landlord Associations, Forums and Organisations:

Land Registry:

• A register of who owns every property in England and Wales.  Exceptions are those properties not yet registered.  Registration occurs automatically upon purchase of a property.
• Agents may have to consult the registry to establish that a Landlord purporting to own a property is in fact the owner.  
• Likewise tenants have been known to steal the identity of an owner in order to sell a property they do not own. The first the real owner knows is when he no longer receives the rent from his now departed rich tenant.

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Landlord: 

Landlord Referencing Services LRS

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LA:

• Local Authority

Large HMO:

Legal Estates:

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LHA:

• Local Housing Allowance

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Lead Tenant:

• Described by Tenancy Deposit Protection Schemes TDPs as the person to whom any correspondence is sent in order to return any deposit, if taken. 
• This can cause problems should the lead tenant drop out or leave a house prematurely e.g. if pregnant or unable to cope with their course etc.  A new lead tenant should be appointed.

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Lease:

• An archaic term for a tenancy agreement now reserved for tenancies lasting more than 3 years and for land up to 99 years

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Leasehold:

• Where there is a leasehold there is always a Freehold. 
• The Freeholder (owner) leases property or land to the Leaseholder for a term of months or years.

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Legal Protection:

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License - By Invitation:

• Put simply this is what is granted to a visitor to a property:
• allowing visitors to stay as long as owners permit
• expiring upon owners asking visitors to leave.
• See Street and Mountford for a comparison of a lease and a licence.
• not to be confused with property licensing - the first licensee has few rights whereas the second license holder has significantly more rights to let where others may not.

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Licensable Property:

• This is completely different to the licence described in the above case of Street and Mountford where the owner grants permission for a visitor to stay until requested to leave.

• A licensable property requires the City Council to grant permission to a landlord to let a property via s.54. s.55  or s.80 of the HA 2004 .
• A property designated by
• statute or
• local authority required to be licensed see License

Lifestyle Referencing

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Loan to Value:

• the ratio of deposit in relation to mortgage loan. 
• Say you buy a property for 100k and your ltv is 75%
• So you borrow £75k and you provide £25k deposit = 100%.
• 75% LTV = 75% of debt you owe to the lender and
• 25% of the deposit is the amount you provide to buy a property.
• In this instance the 25% stake is also known as the equity or the amount remaining after the loan is deducted.

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Loan to rent ratio:

• The ratio of rent to mortgage-loan required to pay the loan expressed as a per cent.
• Too low rent and you cannot afford the mortgage.
• Likewise too high interest and you may struggle to pay the mortgage interest.
• This percentage fluctuates with Bank of England interest rates or LIBOR rates as set by lenders.

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• Locks to bedroom doors Security v convenience
• There are two costs to consider:
• The cost in terms of safety and in terms of money.
• Should a fire fighter attend a house and discover a locked door then this is very likely to end up with a sledge hammer hole in it to determine whether there is anyone inside lying unconscious.
• On the one hand there is the cost of human life and on the other the cost of a new fire door.  In 25 years there have been three fire related incidents in a student property (two minor and one more serious but non fatal).
• Tenants and Landlords view this topic in two ways:
• Tenants may be nervous about a housemate or guest:
  entering a room causing embarrassment or threat.
  Tenants could pay with their lives e.g. fire, due to locked doors preventing access
• Tenants generally secure a small discount form insurers by stating they have a room lock.
• In order to save a negligible reduction on a student's insurance premium landlords regularly pay hefty call out charges for each occasion a trades person is unable to access a house.
• Landlords face when providing door locks.
  1. The cost of installing the lock
  2. The cost of maintaining the lock and keys
  3. The cost to attend when a tenant loses a key or locks it inside
  4. The cost of abortive time for trades people unable to gain access to a locked room.
  5.The cost of abortive time for trades people unable to gain access to the entrance door.
  6.The cost of further damage e.g. flood or fire, due to locked doors preventing access.
  7. The cost when trades people knock on a door and ring the bell repeatedly but the residents refuse to answer and ignore the trades people outside in the hope another housemate responds. This is a very regular occurrence. Likewise delivery of furniture and white goods are returned to manufacturers marked, "no one present at appointed time".
  8. A possible prohibition against providing bedroom door locks by any mortgage lender.
  
  Bedroom doors and locks require some forethought.  If the bedroom door is locked does this mean the room is empty, or is the occupant merely asleep or in the en suite shower and thus unable to hear the door knocking over the noise of the shower?  Always lock your door when in the shower and cover yourself up before emerging into your room! Leave your key in the lock if you are inside but do not turn it.  Just leave it loosely in the lock so it can be pushed through without the need to turn so it is obvious you are present to a fire fighter.  Then if a key is available emergency access enables the lock to open quickly without breaking the door down.
  
  
• When entering a room the normal procedure we recommend:
• After knocking and calling out gingerly we open the bedroom door if a spare key is available, calling out, "coming in", with the door ajar, before fully opening the door following no response.  Few trades people have access to bedroom keys and a locked door is likely to mean a further return trip before the problem can be resolved.  Meantime tenant(s) remain unaware of any attempt to repair may continue to complain that the defect remains.
  
  Example email to tenants:
• The Heating engineer is attending on xxxxxxxxxxxxxx at an unspecified time to do a periodical inspection of your heating system.
• Should there be any problems with plumbing please advise prior to the visit and if you are present bring any such matters to the attention of the engineer.
• Please do leave your bedroom doors open during this inspection as all radiators will need to be accessible.  Should you have a loft hatch in your first floor bedroom, access to the loft boiler will be necessary.  Please ensure any area below the trap hatch is free of items which could be damaged by access.  Please ensure your computer especially a lap top is closed with cables capable of being moved aside to enable loft or radiator access
• Locked doors add significantly to the cost of maintenance.  We have wrestled with the solution to this expensive problem.  It is now our policy where, having provided notice of a trades person attending, and where the trades person is then unable to access locked rooms and needs to make a return journey to charge groups for each abortive call out charge.  This statement is designed to get your attention and to ensure you stick a post-it note to your door above your room lock saying do not lock on the day appointed for a trades person to attend! 
  
  The current less attractive alternative is for us to disable all key locks. Lock provision is not mandatory.  Many landlords do not provide locks and save themselves much more than the cost of the locks.  E.g. when viewing a house it takes several times longer with keys than without; adding considerably to the time taken to view and let a house.  For landlords room keys are a curse, help us by leaving doors open where requested.
• http://www.leydonlettings.co.uk/DoorLocks.html
  
  
• Occasionally a lock appears to need replacing  - the summer vacation is usually ideal between tenancies unless the same group return with the old keys!
• In every instance lock replacement needs to be done with very careful planning to avoid lock outs. 
  All tenants should have a key copied and provided prior to fitting.
  Spares are also provided to those depending on the key for emergency access.
• To other landlords reading this (unless you have a key alike system) the normal procedure I follow in this:
• Visit the house just to make sure the lock is defective WD40 cures sticking lock problems. A screwdriver cures most others.
• If you have to change the lock first measure the length of the existing lock say 4 ½ inches (if it protrudes too far already it is probably too long and as such is a security risk as could be easily snapped in half by a burglar - measure the door width and ask the locksmith for the optimum size.
• Establish the profile (oval, keyhole, etc)
• Visit the locksmith (in Canterbury this could be " ACME Locks and Keys" near the Sainsbury roundabout or ATP Howfield now in Wincheap Canterbury.
• If unavailable order the lock with spares ( we get say 20 keys including those supplied ).
• Upon returning to the locksmith to collect the lock and newly cut keys I check each key is cut properly and turns comfortably without the need to fiddle with the key.
• Fit new colour key tags and fobs with slight variation in colour to identify new keys as well as old keys still in circulation, old keys can re-appear causing confusion and distress to those locked out.
• Email the tenants advising them to expect a lock change in due course.
• Deliver the keys to the house prior to fitting with a date for fitting
• 10. Double check by email or visit each tenant confirming each person has a new key copy on their key rings (whilst retaining the old key meantime)
• 11. Fit the lock.
• 12. Provide a copy to: Electrician, Plumber, Builder for emergencies and any key safe for spares.
• 13. Insist all old keys are returned (so as to keep them out of circulation and not be confused as spare keys later by tenants or others)
• 14. In an ideal world the best time to fit replacement entrance door locks is when all tenants are present - new keys are exchanged for old keys.  There may be times when access is necessary but not possible.

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Lodger:

• Where a tenant resides with the owner this describes a landlord and lodger tenancy.  
• This is not an AST and offers least protection from eviction and simultaneously more protection to the resident owner, whose interests in such a home are paramount. 
• To evict a tenant only reasonable notice need be given - but it must be in writing.
• Following the tenant notice expring the landlord will normally be permitted to change the locks should he wish to.
• This said should the tenant leave any or all possessiions behind the owner resident landlord must adhere to the legislation on returning the ex-tenants possessions and not treat them as his own. See (Torts) Interference with goods Act 1977. 
• The above scenario is in contrast to an owner who lives elsewhere - other than at the tenant's home and is thus deemed to have a secure home and requires less protection.  This owner needs less protection than the resident landlord.  The tenant in this second situation has more protection and is likely to have an AST agreement.

LP:

Mail and redirecting mail or posted postage and packages:

• At tenancy termination and after leaving, tenants mail will normally be dealt with in one of three ways:
  a) redirected to the tenant by the landlord,  the landlord may require recompense for his redirection costs,
  b) each tenant is responsible for redirecting mail via the post office for a proportionally smaller fee than it will likely cost the landlord to sift throutgh other mail to find one particular tenant's mail,
  c) if no decision is taken by departing tenants, any mail not addressed to them could be binned by the next group. 
• See Abandonment of goods and possessions and interference with goods.

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Maintenance:

• This is a massive part of any managed property.
• Students are mostly resident each year from September to June.
• During this time students will have a range of repairs to contend with.  These must be done with minimal disruption to tenants. 
• However, students cannot have their education disrupted by any major renovation.
• During the summer months an army of invisible trades people and cleaners battle to do as much maintenance as the vacation time permits.
• some projects are so time consuming it takes three summers to complete during summer vacations.  The tenants arrive each September blissfully unaware of the noise and dust created in their absence during each phase of the work.  Bliss.
• See also Agent of necessity

Maisonette

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Managed Properties, Management Company, Managing Agent:

• These terms are a variation of the same theme. 
• Letting agents manage properties including:
• Surveying landlord properties
• Landlords are recommended optimum strategies
• Advertising landlord properties in various mediums
• Finding tenants (tenant find)
• Conducting viewings
• Referencing tenants
• Credit checking tenants and guarantors,
• Drafting and signing contracts (tenancy agreements)
• Check-in tenants
• Collecting tenant rents and transferring from client account to clients
• Conducting periodic inspections
• Arranging certification
• Attending to problems and maintenance
• Check-out tenants
• Condition inspections
• Arrange professional-cleaners ahead of new tenants.
• Some processes are handled differently by agents:
• Provision of in-house or external inventories, (the latter are favoured by tribunals in determining impartiality).
• Certification e.g. EPCs

Market - The 

Market rent:

Market Appraisals:

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Mature Students:

• Anyone over... say 21 is a mature student.
• In relation to property a group of mature students e.g. PGCEs get along fine. 
• Compatibility issues are likely to arise when younger and older students share a property.
• Younger students are more likely to want to play loud music and want to return home late potentially disturbing their older housemates.
• Discrimination on the grounds of age is allowed.  
• Some wisdom is required to avoid incompatibility.
• Imagine a group of young girls seeking a tenant to join them.  If they were unable to discriminate they might be forced to share a house with a pensioner - neither party would likely be happy with that.  
• So some discrimination is acceptable.

Mesne Profits:

Money Laundering Reporting Officer MLRO:

Month:

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Mortgage:

• A loan related to property enabling the purchaser to buy and the lender to lend and the seller to sell a property

• There are a variety of mortgage types including the following some of which may be combined.:

• Variable
• Tracker
• Fixed
• Residential
• Commercial
• Buy To Let (BTL) More info.
• Slow start
• Interest only
• Direct Repayment

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Negative Equity:

• The value of a property has fallen below the amount of the mortgage.  This is said to be 'in negative equity'.
• This need not be a problem if the owner has no desire to move or sell and can still afford the mortgage
• The problems arise when the owner needs to move but cannot sell at a price sufficient to repay the mortgage.
• The prospect of buying an alternative home requires a deposit - normally procured from the sale proceeds.
•  If there would be nothing left after selling the owner must wait until house prices rise.
• During a recession this might mean waiting years.

Neighbour:

Noise and Noise Legislation:

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NRL 1: Non-Residence Landlord Tax Scheme:

• An individual NRL1 (PDF 71K) (district reference 940) - send the NRL1 to: Public Depts. 1, Ty Glass Road, Llanishen, Cardiff CF14 5XZ
• A company NRL2 (PDF 29K) see also NRL2 Notes
• Submitted to the Inland Revenue if a landlord resides outside the UK longer than say 6 months each fiscal year.
• "If you have rental property in the UK but your usual home is outside the UK, your tenants or the letting agents you use will need to operate the Non-resident Landlord Scheme. They need to deduct basic rate tax from rental income before they pass it onto you. You can set this tax off against your own tax bill at the end of the year."
• 'Usual place of abode':
• Although HMRC refer to 'non-resident' landlords, it is the usual place of abode and not non-residence that determines whether a landlord is within the scheme or not. Tel: 02920 325048 for detailed information.
• In the case of individuals, HMRC normally regard an absence from the UK of six months or more as meaning that a person has a usual place of abode outside the UK. It is therefore possible for a person to be resident in the UK yet, for the purposes of the scheme, to have a usual place of abode outside the UK. Letting agents are obliged to "not rely" on box numbers and care of c/o addresses provided by landlords. If an agent relies in good faith    upon a UK address provided by the landlord, the agent does not need to deduct the tax. With independent taxation, both spouses jointly owning a property, must provide evidence of exemptions or have income tax deducted at source proportional to ownership on the deeds for any spouse not providing exemption. 
• See Annual returns: http://www.hmrc.gov.uk/international/nr-landlords.htm#40
• The NRL scheme is run by the HMRC Financial Intermediaries and Claims Office FICO

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Notices:

• Any formal or informal document from a utility bill to a legal document which must be forwarded or brought to the attention of the owner or landlord / agent upon receipt, e.g. to ensure services remain connected; or owners are informed of proposed building works to adjacent properties enabling an opportunity to object.
• Notice to quit NTQ, is one of the most important and yet the most neglected notices in the letting profession.  Ignore this and a letting agency gets an unwelcome extended tenancy.
• Where a property requires remedial work to bring it up to an acceptable standard, the local authorities can serve an 'Improvement Notice' upon the managing agent or landlord.
• Failure to act upon such a notice is a criminal offense.
• Where a tenant provides a notice to leave a landlord may be tempted to rely on this thereby obviating the requirement to provide a counterpart s.21 NTQ.  Landlords and agents should always provide a s.21 irrespective of a tenants apparent intentions.  It is fairly common for tenants to change their mind perhaps following a change in circumstances and a tenant's need to remain.  Imagine the situation whereby a landlord agrees a new tenancy back to back with the current tenancy.  In the absence of serving a s.21 notice, the current tenant might be entitled to remain under a periodic tenancy - leaving the landlord to explain to the disappointed even devastated new tenants that they cannot move in as expected!
• In some situations the landlord will issue a notice to increase the rent a section 13 Notice.  There are many formal letting notices.

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Notice to Quit:

• A notice in prescribed form is required as a first step towards bringing a tenancy to an end.  
• Notice to quit can be seved by the agent.  
• But an agent cannot go to court on behalf of a landlord but he can accompany him for support.
• Different types of tenancy have separate rules with a mixture of mandatory or discretionary grounds for eviction:
• AST during and following the tenancy term S.21 no-fault grounds. 
• S.8. includes a mix of no fault and culpable grounds for eviction of AST tenants. 
• CLT tenants use neither the above, as Common Law rules apply.

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Occupants / Occupation / Actual Occupation:

• Occupants of a property include all those residing or entitled to reside there.  They are, or are entitled, or deemed to be in occupation.  
• Students do not lose their Council Tax exemption merely because they are not present, e.g. due to their return to parental homes during vacations.

• Actual occupation is a precise legal landlaw term to determine whether or not a person was in actual occupation at a relevant time, despite perhaps temporarily reluctantly residing elsewhere such as a hospital or old persons home whilst making occassional return visits to the home with the intention to return ultimately. See:  Link Lending Ltd v Susan Bustard 2010
  See s. 70 (1) (g) of the Land Registration. Act 1925 as amended in 2002.  

• See also overriding interests

Occupier's Liability:

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Off-Plan:

• Property purchased before building has started or  complete.  
• In a rising market this can prove fruitful.  
• In a falling economic downturn it can prove disastrous.  
• The property price can rise above or fall below what you are paying according to the markets.
• Once signed up purchasers are bound to complete the sale in any event!  Lucrative or lunacy; it is risky.

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Order for Possession or Possession Order:

• Provided by a County Court judge on application by the landlord / agent if satisfying the criteria having provided a valid notice to quit:
• s. 8, or
• 21a, or
• 21b and
• copy of AST (or evidence) and
• court fee (recoverable from tenants). 
• Landlords must sign a summons for possession - not the agent!

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Overriding Interests:

• The parent agrees to be responsible for the tenant’s liabilities in the event the tenant fails to do so.
• Leydon Lettings only hold the parent of a child responsible for one portion of the rent and not as is normal practice the whole amount.
• See your tenancy agreement for full details.
• See Joint Tenancy for a more detailed explanation.

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Parol Evidence:

Spoken statements are unlikely to be binding particularly when a written contract (tenancy agreement) is provided.

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Part-P:

• Electrical safety certification following building works often provided directly to Building Control by NICEIC.
• Novices and D-I-Y enthusiasts not members of e.g. NICEIC cannot certify the safety of an electrical system.  
• Approved contractors can also certify safety.
• See Periodic Electrical Safety Inspections.

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Parties:

• Not social gatherings with drinks - we wish!
• This describes people who are party to any agreement.
• This will certainly include the Landlord and tenant and potentially guarantors too.

Party Wall etc Act (The) 1996:

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Payment:

• Rent for accommodation
• Bills - for utilities like gas, electric, water, sewerage, internet, etc.
• Deposit - if required is protected until returned at tenancy end.
• Maintenance - Landlords are advised to provide a contingency fund for unexpected eventualities like bust pipes, etc.

Periodic Electrical Safety Inspections:

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Periodic Tenancy (PT):

• This describes a tenancy which continues on a month by month basis following the end of a set tenancy term, without the requirement to renew the tenancy.
• This is in contrast to a Fixed Term tenancy, the duration of which normally lasts at least 6 months.  
• There are both advantages and disadvantages with this tenancy depending on the objectives of both the landlord and the tenant.
• E.g. a landlord and say his 'professional' tenants might be mutually happy not to renew a fixed term tenancy.  Instead the parties may be very happy to simply allow the tenancy to "run on" as a periodic tenancy with no fixed end date.
• This can allow more flexibility for both parties without eiither demonstrating any ongoing committment.  
• Unlike a periodic tenancy, a new fixed term tenancy involves additional (and often unnecessary) work and accompanying fees. 
• Any existing held deposit must be re-registered upon renewal within 30 days, even when it is the same tenants renewing, involving additional work and fees.
• Should the landlord or tenant wish to end a tenancy it may suit either party to be able to do this more speedily e.g. should circumstances change: job loss, sell house, etc.  
• A tenant must provide the landlord with only one month's notice to end a periodic tenancy whereas the landlord must provide 2 months.  If either party wish to end the tenancy they do not have to allow six months to elapse as they might with a fixed term tenancy.  By mutual agreement there is nothing to prevent either party releasing the other from any term.  Commercially this may not be practical.
• However, if a student landlord's tenants suddenly announce they are leaving in February, then the landlord is likely to have to wait several months until the next academic year, before finding more students.  If this is the market niche adopted by the student landlord he will set the term for the duration of the academic year therby avoiding such dillemma and rent voids.  
• Both the students and the landlord are likely to want mutual committment from each other so that they can depend on guaranteed occupancy without interupting studies to move or suffering the loss of rent during a void.

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Permission - various and most common:

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Pets:

• Permission to allow pets cannot be unreasonably withheld under the 'unfair terms and conditions' rules.
• Leydon Lettings state,
• "We are unlikely to refuse a request for a goldfish or guide dog.
• In a non sharing house we are more likely to agree to pets. I.e. a house for one.
• In the unlikely event we agree to pets there is an administration charge of £50 to consider and agree to your request. 
• No charge for a guide dog.
• By stating our reasons it is "reasonable".

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Planning Permission:

• This topic is too involved to cover in depth but the most important lettings criterion is the number of tenants resident in a property. 
• In Canterbury, where more than 6 UNRELATED people share a property, then the owner must have prior planning permission (there are few exceptions e.g. pre-existing occupation). 
• Up to 6 people no planning permission is required unless it is an  HMO within an Article 4 direction area. 
• Mum, Dad and 10 children occupying a house does not create an  HMO so no planning permission is required.  Three brothers sharing ditto; BUT
• Two brothers and an unrelated friend is an HMO and thus potentially licensable within any Article 4 direction!
• Retrospective permission is not normally required unless e.g. HMO status is lost by letting to non HMO tenants.  Yes you can actually lose HMO status! 
• See also Class C and Permitted Development and Iceberge homes, Party Wall Act and Town & Country Planning Order 1987, providing for changes of property use from Class C3 residential use, to Class C4 HMO use
  

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Popping in Dropping-in:

• This phenomenon can be a real dilemma depending on how landlords operate and  also upon tenant expectations.
• Most tenants appear to want to be left alone and not bothered by the landlord - until a need for landlord involvement arises, when  they reasonably want a speedy response.
• Some overzealous landlords are inclined to visit unexpectedly to keep an eye on their property.
• This will most often be perceived  as friendly (if not eccentric) concern, enabling any problems to be resolved  quickly.
• However, it only takes one occasion when landlords who do not  communicate such impromptu visits to run the risk of accusation of harassment. 
• Too little interest and landlords may wrongly be perceived as disinterested in  their tenant's welfare.
• The courts, however, are very clear about the required  minimum 24 hours implied notice before, "dropping-in" to visit your tenants or property. 'Implied', means it applies irrespective of contractual inclusion.  

Portable Appliance:

Portable Apliance Test (Pat testing):

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Portfolio:

• A number of properties owned by one owner / landlord

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Portfolio Landlord:

• A landlord owning more than one property and often let by the same agent.

Possession, Vacant Possession:

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Possessions:

Positive Covenants:

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Power of Attorney:

• A Landlord e.g. living abroad may sign a legal form permitting an agent to act on their behalf in relationship to some or all matters arising in relation to their rented property.
• This is a legal document granting third parties absolute or limited rights over the owner's property and chattels (contents).

Premium:

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Prescribed Form:

• The way statute determines a document must be written.
• This will usually be an important notice e.g. a notice to quit. 
• To end a rental joint AST tenancy on the due date, you must issue a notice to quit at least two months prior to expiration of the tenancy written in the prescribed form. 
• You must also issue each named joint tenant with an individual notice to quit. 
• At Leydon lettings we back this up with an email containing the information in prescribed form advising of the recent postal delivery. 
• It would then be difficult to argue non-receipt if received by more than one means. 
• Many landlords and even some agents fail to do this. 
• The consequences could be catastrophic at the end of a tenancy, particularly  when the next group are standing outside and cannot move in... why?  Because the previous tenants are still sitting watching TV whilst calmly drinking a night cap before going to bed, perfectly legitimately, awaiting you, whilst pulling your hair out, to serve the proper notice in the prescribed form within time limits!

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Principle:

• The loan amount on which interest is calculated. 
• See also ltv, equity, ltr.

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Professional:

• This describes a working tenant.  Formerly a collar-and-tie worker, nowadays any worker is a "professional".  see other genres of tenants

Professional Cleaning:

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Property:

• Dwelling, Studio, flat, maisonette, house, home, HMO.

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Property Particulars:

• The details of location, how many rooms, rent, etc.

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Proprietary Estoppel:

• See promissory Estoppel
  • See Estoppel.
  • See Equity.

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Protected Tenant:

• Most tenants have some protection but some have more or less protection than others i.e. the protection from eviction.  Some tenants also enjoy additional protection from high rent increases determined by the Valuation Office Agency. 

• There is a hierarchy from most to least protection as follows:  Protected Tenants; ASTs and, with least protection lodgers with little more protection from eviction than a hotel guest. 

• Specifically a "Protected Tenant" is one whose tenancy started prior to 15 January 1989. This said, subsequent tenancies have some protection albeit significantly less.  Prior to this date, letting property was not viable due to unintended consequences resulting from overregulation.  Landlords owned numerous worthless empty properties at a time when prospective tenants were homeless.  The government stepped in with the HA88 reducing tenant rights; whilst paradoxically successfully resulting in the intention of the act - landlords able to rent their accommodation.

• However, the HA88 only applies after 15 January 1989.  This has created a decreasing number of pre-existing protected tenancies.  The protections afforded carry forward to any new tenancies between the same landlord(s) and tenant(s) - even tenancies created after 15 January 1989.   And if the tenancy is in the name of one spouse or civil partner but not the other then the surviving spouse is also likely to be a protected tenant.  Only upon death of the survivor will such tenancies cease.  With the passage of time these tenancies are becoming fewer. 

• This has resulted in inexperienced landlords unwittingly purchasing protected tenancy properties e.g. at auction in haste, without exercising due diligence.  This would establish the type of tenancy.  Unaware landlords subsequently learn that their new property purchase is occupied by protected tenants.  This makes the purchase a very poor deal potentially ruining the purchaser whose rental income is unlikely to cover the mortgage repayments.  And, the landlord becomes responsible for the cost of running the tenancy at a loss.  Now the landlord cannot evict, nor afford mortgage repayments, nor even to buy gas and electric certificates.  Worst still he cannot sell and cut his loss since there are few buyers.  At best the landlord can negotiate a deal with the protected tenant who now holds all the aces.  Settlements of over £200,000 have been paid to protected tenants to persuade them to leave.   

• This also raises potential pitfalls for the inexperienced agent unaware of such matters.  The acts of an agent usually bind a landlord.  Failing to recognise a protected tenant can result in the wrongful eviction or increase in rent of protected tenants and in turn in fines, legal action and loss of reputation.

• A tenant, whose landlord is a resident landlord, is normally an  un-protected lodger.

• Protected tenants enjoy additional rights including regulated i.e. 'fair rent'.  

• Unlike "protected tenants" and "AST tenants", landlords with unprotected lodger tenants have an automatic right to re-possession. 

• Protected tenant rents are not set by the landlord but by a rent officer in accordance with what they deem fair, but need not reflect market values of unprotected tenants.  

• Do not confuse other types of protections.  See Protection from Eviction Act 1977
• Protected tenancies are also known as AKA Regulated Tenancies and Sitting Tenancies.

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Protection from Eviction:

• A tenant has rights under the Protection from Eviction Act 1977
• The minimum applicable statutory period of notice must be provided in accordance with the tenancy and statute.
• Landlords cannot constructively evict their unwanted tenants.
• E.g. by withholding services like gas and electric.
• Landlords must obtain a court order to legally evict a tenant.
• A court will not grant such an order if the landlord fails to provide a valid notice to quit.
• A landlord can be fined and imprisoned for tenant harassment

• The tenant is entitled to be left alone (to quietly enjoy the property) without the landlord or his representatives e.g. popping in unannounced or conducting unscheduled works for which the tenant has not granted permission.  Prior to visits it is implied by statute that the tenant is entitled to receive 24 hours notice.  This said the tenant is entitled to agree a lesser notice period e.g. following request for a repair it is implied that the tenant agrees this be done without delay.  The tenancy agreement should specify such matters prior to signing for clarity and certainty.
• See also noise

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Reasonable:

• It is not always sufficient for landlords to make a statement of their terms and conditions; their terms must also be reasonable.  By providing your reasoning, this in itself, goes some way towards demonstrating reasonableness.
• By making blanket statements without reasoning you may risk falling foul of the Unfair Contract Terms Act 1977 and Unfair Terms in Consumer Contract Regulations 1999
• The law will not uphold a contract which is inherently unfair even if you provide compelling reasons.
• Where an act of parliament or common law decrees rules, whether or not we think these unfair, is irrelevant.  If the law decrees it unfair then it is!  The outcome of some laws may be unfair.
• Any contract which is not peppered with the use of the word reasonable is in danger of being held unreasonable!

Record keeping:

Redemption:

Redirecting Mail:

References and checks:

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Renewal Rebooking Returning Tenants:

• This refers mainly to a fixed term tenancy  which, following expiration may result in a new tenancy being granted.  Particularly appropriate for students who reserve for one year at a time with freedom to leave at he end or return if satisfied with the service and accommodation provided by the landlord or letting agent.  Similarly the landlord may not wish to renew a bad tenancy.
• Compare the above scenario with a periodic tenancy - this permits tenants to remain after the tenancy expires without the need to renew.  This tenancy is convenient for professionals who may reside for a decade without the need to continually renew and all based on the initial fixed term tenancy.

Rent:

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Rent-A-Room Scheme:

• This refers to the HMRC fixed allowance for Resident landlords with lodgers (not purpose built flats in which the landlord has a separate flat).
• Spouces can elect to split the allowance when both let furnished accommodation in their joint home.
• Each can claim half the allowance before paying income tax.
• In tax years 2011-12 / 2012-13 this would be £2125 each.

Rent Assessement Committee - RACs

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Rent Frequency:

• The regularity with which rent payments are payable, e.g.
• weekly, monthly, and quarterly. 
• Note if weekly you must provide a rent book!

Rent Guarantee:

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Repairs:

• Under Section 11 of the Landlord and Tenant Act 1985 landlords must:
• Maintain the structure and exterior of the property including drains, gutters, external pipes, etc.
• Maintain in working order the supply of water, gas, electricity and sewerage.
• Maintain in working order the heating and hot water.
• This is also described as a landlords repairing obligations.

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Re-Possession:

• This is both the process and the act of returning the property keys and access rights to the landlord.  This may be at the end of a  fixed term tenancy or during an extended term called a periodical tenancy.  
• It might also be the adversarial re-possession via a County Court following the grant by a judge of a possession order.
• Should a tenant refuse to leave following such possession order a further application to the court is required to obtain a bailiff's order to evict tenants in the event the tenant refuses to leave voluntarily.

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Resident landlord (two types):

• Resident landlord 1

• A property let where the landlord is also resident.  This is governed by different rules compared with the normal AST.  The tenant has little security of tenure and can be evicted with minimal reasonable notice with minimal power of the courts to intervene.  There is no formal 'notice to quit' - the landlord is entitled to regain possession of his property.  Some foreign students prefer resident landlords as this encourages cultural communication and sharing and can benefit those nervous of sharing with other tenants. 
• Others prefer their privacy and to be left alone in a non-resident landlord home to socialise as they wish without having to consider the landlords views.
• There are significant tax advantages for resident landlords - up to a certain threshold of income circa £5k pa is ignored by HRMC when calculating tax via annual tax returns.

• Resident landlord 2

• Another type of resident landlord relates to another type of tax- they are entirely different concepts:

• A Landlord resident in the UK for less than 6 months pa is unlikely to be a UK resident for tax purposes and may thus be subject to tax at source on rental income collected by letting agents.

 Restrictive Covenants:

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Retention for Maintenance:

• This is a pre-agreed amount of money retained as a contingency fund from a landlords rent and held in the client account until an emergency occurs.  This enables letting agents to quickly effect urgent maintenance, without delay: like a boiler or roof repair or washing machine replacement.  Such unpredictable repairs are inevitable but the adverse effects can be mitigated by being prepared.  Cleared funds must be in an agents client account prior to ordering such works to comply with letting rules.  The logic of this is obvious - waiting for a landlord to transfer funds in the middle of winter when the tenants are freezing awaiting a boiler repair is avoided by a retention!
• See also Agent of necessity

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Revenue:

• Revenue is rental income as opposed to
• Capital  the value of bricks and mortar and fixtures.
• See the reason for the distinction: Taxes

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Revenue Tax:

• Revenue tax- payable on rental income after deducting personal allowances and exemptions.

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Right To Reside R2R

Risk Assesement 

Rooms:

Room-mates:

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Rubbish!:

• The topic may be boring but the for local residents the issues are indisputable and residents complain about students not dealing with this responsibly.
• Bins must be:
• On the boundary
• With lids closed properly (no gaps for flies).
• with only non-recycling waste inside
• Glass can be placed in wheelie bins*.
• Clear sacks must be packed loosely with:
• Cardboard
• Paper
• Clean tins
• Plastic bottles with tops removed
• Newspaper
• No food inside
• Toilet roll tubes
• Margarine tubs - clean
• Yogurt pots - clean
• Aluminium and tin foil
• Egg boxes
• Coke cans - clean
• Plastic drinks bottles - clean
• Shampoo / conditioner /bubble bath bottles – clea
• It is evident from the list that most rubbish ought to fit into clear sacks if recycled properly.
• If you have insufficient room in your bin you are almost certainly not recycling properly.
• *Glass from early 2013 will be collected from the doorstep, meantime supermarket bottle banks is the means of recycling.
• Glass can be placed in wheelie bins.

• EPC Certificate - from 6/4/12 compulsory with all marketing.  Not strictly a safety issue but coupled with the others you have the lot in one place.
• Electric Safety Certificate establishes the wiring is safe.
• Fire Safety certificate - compulsory for large HMOs and wise for all properties to evince safety following an incident.
• Gas Safety Certificate - renewable annually, compulsory for all  HMOs.  From 2013 must include access to inspect flues.
• Gas Servicing - not obligatory but advisable to evince due diligence.
• HHSRS - this is not a certificate but an assessment report of safety.
• PAT Portable Appliance Testing - ensures plugs connected to portable goods are safe.  The most important of which are items which move as these are more prone to damage - Irons, vacuum cleaners and especially washing machines.   The latter can vibrate on an uneven surface and creep forward putting the plug under tension.  The cable can become trapped under the washing machine damaging the outer insulation and causing a short circuit.

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 Sealed Bid:

• Where a property attracts many interested buyers an estate agent might conduct a sealed bid.  
• Each prospective buyer independently states their highest offer.
• Bids are placed in a sealed envelope and submitted to the agent.
• When the deadline for opening the bids  expires all opened.
• Following "the opening" the highest bid normally wins.  
• I would always try and make it a condition of tendering that I am permitted to be present at 'The Opening' of sealed bids to ensure that there are no shenanigans favouring one investor over another.  A refusal would indicate something underhand.

Second Gear Valuations:

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Section 8 of the Housing Act 1988 as amended by s.151 HA 1996 - Notice to Quit - Grounds for eviction:

• This has 17 grounds for evicting a tenant –
• the first 8 are
• Mandatory i.e. the judge has no discretion and must grant eviction.
• Grounds 9 to 17 are
• discretionary - the judge will act as s /he sees fit and fair.
• Do not confuse this with a section 8 tenant - an American tenant in receipt of housing cost assistance.  This is not a UK concept.

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Section 11 of the Landlord and Tenant Act 1985:

• Landlords must maintain the structure of the property 
• See Repairs

Section 13 Housing Act 1988 - Notice warning tenants of rent increase.

Section 20 Notice

Security Deposit:

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Selective License

Self Contained Accommodation:

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Service charges:

• Service charges are normally payable for maintenance works to common parts, such as roof repairs.
• These charges are generally related to leasehold properties where common costs are shared between owners of the lease, e.g. gardening. Other charges might include:
• • Administration charges
  • Cleaning common areas charges
  • Estate Management Scheme charges
  • Insurance charges
  • Recognised Tenant Associations subscriptions
  • Heating charges
  • Lift charges
  • Lighting charges
     
  • Manageent charges need not be associated with a lease - Self build schemes can involve commonareas requiring maintenance and thus charges.

Signatures:

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Single Household:

• In a lettings context this is in relation to an HMO.  If three brothers share a house it is a single household as they are all related.  However, should one brother leave and an unrelated housemate take his place forming a new group of three, four etc, then it is no longer a single household.  It is now an HMO.  Just remember '2 or more and 3 or more = HMO':  two or more households and three or more tenants make an HMO

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Sitting Tenants:

See Protected Tenancy

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Slow Start Mortgage:

• Compromise between paying interest only and capital repayment.  The capital repayments are delayed for a time to suit the borrower's interim needs.  Suitable for recent graduates with new job and promotion prospects but with no initial surplus cash with which to pay interest in addition to initial home building expenditure.  But in say two years time when the graduate is established the capital is payable calibrated over the remaining term of the loan.  This costs less at the outset and proportionally more after the deferment period.  Such loans attract more arrangement fees due to the higher lending risks.  These are also harder to find in austere economies.

Small Claims Court

Social Housing

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Soft Furnishing:

• Must comply with regulations and
• where appropriate include a label stating
• "Carelessness causes fire!
• Exceptions include furniture manufactured prior to 1950
• The problem then is calculating the date
• This is not so difficult as furniture predating 1950 have distinctive styles - the older the furniture the easier it is to distinguish within an era in accordance with kings and queens.
• Mock furniture is usually easy to spot as it is too new.

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Spouse:

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Squatter Squatting:

Stakeholder

Stamp Duty

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Statutory:

• That which parliament has enacted as law - compare Common Law  handed down by the judiciary (judge made law - case by case - case law)

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Statutory Instruments:

• Discretionary Powers granted to local authorities via parliament to exercise as they see fit for their area.  Should the authority go beyond what is within their powers they are acting Ultra Vires and can be challenged via Judicial Revue.  If found guilty LAs can be sued for compensation.  
• Such powers can affect all aspects of life including the lettings industry.  For a current example see Article 4 Directions.

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Street v Mountford 1985:

• Probably the most used and most famous property legal case (Case Law) which decided inter alia the distinction between a lease and a license in relation to exclusive possession for rent.
• "You can call a four pronged instrument a spade but", a subjective Judge will argue that, "in the eyes of an objective bystander", sat atop a Clapham omnibus, "it is a spade".  The prefix 'omni-' equates to everyone, hence the average man and average oppinion analogy.
• This is a colourful mixture of a couple of legal cases. 
• Lord Bowen's 150 year old Clapham omnibus analogy has been widely adopted as a legal term to describe a 'reasonable man'. 
• I.e., it is not what you call an agreement that matters, but what it is in fact and thus in law, seen through a 'reasonable' person's eyes!

Storage / Repository:

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Student:

• It is obvious what a student is; but not if you want council tax exemption!
• If you are not a full time student able to prove you are in full time education then you are not a qualifying student entitled to council  tax exemption.

Studentification:

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Student Rights:

• Student rights are the same as human rights and cannot be discriminated against on the grounds of colour, race, gender, ethnicity, etc.

Studio:

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Succession:

• Following death of a tenant there may be a legal right for a relative of the deceased tenant to remain as a protected tenant.

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Subject to Contract:

• A Legal phrase normally found at the start of a document.
• Subject to contract means that anything discussed in the draft which followes and prior to signing is not legally binding. 
• Draft contract would have a similar effect.
• Pre-contract communications are necessary to enable the drafting of a contract without inadvertently creating an unintended contract ahead of all the terms being agreed and drafted before signing.
• This phrase makes certain in law that anything said 'subject to contrat' does not constitute a binding contract.

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Subletting:

• A tenant who in turn lets to another tenant creates a sub-tenancy - this is called subletting.
• This normally requires the permission of the superior landlord (the owner) who ought to provide for any rules on subletting within the tenancy agreement.
• Where permission is granted to sublet it is crucial that any sub-term is less than the owner has granted to the fisrt tenant.
• It is possible, but inadvisable, to have a chain of subtenants.
• See also Dropping out and deed of assignment of tenancy
• The substitute sub-letter may not be compatible with the original group who may enjoy different lifestyles, tastes in music - which might irritate each other. Sooner or later someone will leave.  
• The important thing is that the original and departing tenant's rent will be paid by the substitute! Should the substitute leave after a month due to incompatibility then the first departing tenant must once again pay at the landlords discretion under the joint and several liability rules of the tenancy.  The substitute could also be called upon to pay.  Any guarantor can also be called upon to pay up to the total amount lost.  This is in contrast to a deed of assignment where the departing tenant leaves absolved of responsibility. 
• In light of this, it is arguably wrong that the original departing tenant(s) should be absolved from responsibility in the wake of such incompatible devastation?  Not that there is any culpability in dropping out, but there is continuing consequential loss.
• For this reason the original tenant will in some instances remain jointly responsible together with all the other original tenant-housemates until the tenancy expires.  This can occur when the landlord agrees that tenants sublet to the substitute tenant.
•  See also Deed of Assignment,  subletting and Substitution

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Sublease:

• A sublease is the document provided to a subtenant by the superior tenant and in conjunction with and agreement of, the landlord.
• It also loosely describes a subletting

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Substitute:

• Substitute Accommodation

• This can be necessary or agreeable for a variety of reasons:
• The property may become uninhabitable following storm damage, flood, fire, the absence of amenities or due to the need or desire for renovation of a property.  See our webpage Upgraded Accommodation.

• Substitute Guarantor

• Occasionally a guarantor will not pass a credit check.  A substitute credit-worthy guarantor would be required to enable the tenant to secure the tenancy.

• Substitute Tenants

• A tenant drops out following: exam failure, emotional trauma, financial dilemma, etc.  No-one need be culpable for such a situation.  However, there remains a financial responsibility to pay the rent?  The drop out is responsible for the consequences of first agreeing to the house-share, then leaving the remaining tenants potentially unable to find a compatible housemate. 

 See also Deed of Assignment. Dropping Out  and Subletting

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Sui Generis (of its own kind):

• This term is used particularly in planning to describe a category which is basically uncategorised or which is in a cagegory of its own.  
• E.g. A property of "more than 6 unrelated residents" is so classed.
• Planning permission is automatically required for such a property as a property of "more than 6 residents" unless exempt by preexisting occupation prior to legislation (i.e. by licence with a small "l").

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Summons for possession:

• A county court document in prescribed form issued to a tenant who is in someway in default in order to regain possession of a property.  This will require a set of preliminary documents including a Notice to quit a court fee of about £150 recoverable from the defaulting tenant.  If the tenant fails to leave then a court bailiff can be instructed to effect eviction.  If there are rent arrears this may require a separate money claim depending on the nature of the claim.

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Sun Pipes:

Surrender:

Surveys and fees:

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Suspended Order for Possession or Suspended Possession Order:

• Provided by a County Court judge at his discretion (if within his discretionary power) or
• on application by the landlord / agent if satisfying strict criteria.
• Having provided a valid notice to quit (s. 8, 21a, 21b),
• a copy of any AST (or other evidence), and
• court fee (recoverable from tenants);
• the judge may grant any order for possession be suspended,
• pending the tenant doing,
• or refraining to do,
• that which gave rise to the request for the order.
• E.g. refrain from unacceptable conduct or pay rent.
• The landlord may agree to such a term even where eviction is mandatory,
• to give a tenant a second chance.
• Formalising the agreement with a suspended order:
• motivates the tenant to comply and
• provides solace to the landlord that he can more easily return to court insisting on enforcement of the order for possession should the tenant fail to comply with the order.

• Such expenses must be wholly and exclusively for business use.
• Revenue and Capital allowances are treated separately:
• Capital Expenses:
• Based on bricks and mortar these allowances are claimed only upon property sale or transfer i.e. delayed
• Some apparently capital allowances are treated as revenue allowances under "the nearest modern equivalent rule".  i
• Improvements are normally treated as capital allowances
• However, double glazing, originally treated as an improvement is now treated as revenue.  
• Alterations are not normally revenue but capital.
• Revenue expenses - 
• Almost anything part of an existing property that already exists can be replaced with an equivalent substitute and be treated for tax purposes, not as capital, but as revenue: 
• kitchens, bathrooms, doors, painting, roof repairs or replacement are all revenue items. 
• The basic rule is, "if it already exists then it is probably allowable" as revenue expenditure.
• Rental (revenue) income can be offset immediately by  allowable deductions reducing tax payable:

• Accountants fees
• Advertising
• Certification Service and Servicing
• Electric
• Gas
• EPC
• Fire
• Cleaning
• Council Tax - where payable
• Fees:
• leaseholders
• Legal 
• Letting agent
• Maintenance
• Professional
• Gardening
• Ground rents
• Guarantor Vetting / Credit checks
• Insurance:
• Protecting rent losses.
• Claim fees.
• Buildings
• Contents.
• Interest :
• Mortgage loan interest BUT NOT capital repayments
• Loan Interest with exclusions related to improvements.
• Inventories
• Maintenance
• Marketing advertising costs
• Client and tenant
• Rental property
• Rent collection / enforcement
• Repairs and Maintenance:
• Broken furniture
• Cookers, hobs, hoods
• Dampproofing 
• Electrics
• Gutters
• Lead flashing
• Plumbing
• Repainting
• Roof tiles /slates
• Sand Blasting /stone-clean
• Wet and Dry Rot
• Revenue travelling costs between properties solely for the purposes of the rental business are an allowable expense in computing rental business profits
• Transport and carriage - feul, tax, insurance, MOT adding back any private-use proportions.
• Warranties on e.g. white goods
• Water-rates and utilities is provided as part of a bills package.
• Window and Door Replacement (equivalent)

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Taxes - Property:

• Property taxes are very specific:

• Non Resident (Non Dom) tax for landlords not normally UK resident.
• Capital Gains (Bricks and Mortar) Tax
• Revenue Tax - for rental income
• Inheritance Tax following the death of an property owner (Death Taxes) based on the value of an estate less tax exemptions.
• Rent-A-Room Scheme - This is not a tax but a tax-relief.  Resident Landlords are treated more favourably with larger tax relief allowance.
• Independent taxation - is a separte topic where spouses are taxed separately.
• Council Tax - payable by home occupiers and or owners.  Some occupiers are exempt including full time students. 
• On 6 April 2013 the coalition government reduced the benefits and exemptions to both tenants and landlords.  Empty properties in Canterbury no longer qualify for an initial 6 months exempt status pending renovation and a property becoming uninhabitable.

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Tax Exemption:

• See FICO See also NRL1
• The Inland Revenue determine whether a landlord's rent is taxed at source or is exempt by providing an exemption certificate.
• HMRC exemption numbers issued to agents confirm exemption.

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Television (TV) rules for tenants:

• One TV licence will normally permit all members of a household to use unlimited numbers of TVs.
• However, if there are locks on room bedroom doors, then separate licences may be required.
• There again, if the tenants have a joint tenancy they are deemed to be a single household requiring only one licence even if there are locks on all doors.
• So if tenants have separate tenancies they require separate TV licences, whether or not there are locks on bedroom doors.

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Tenancy,  Common Law Tenancy – CLT:

• CLTs are not suitable for tenants who by law form an AST
  • 3 or more unrelated people sharing and forming two or more households.
• CLTs are most suitable for most non ASTs:
• Non-ASTs - think of the acronym  C.R.A.S.H. - H.E.L.P! 
• Commercial / Business tenancies
• Resident Landlords
• Agricultural Land tenancies
• Student Letting (only if in Halls of Residence)
• Holiday Lettings
  
  
• High Rent Tenancies            > 100K pa
• Elsewhere Low rent tenancies  < £250 pa
• London Low rent tenancies      < £1000 pa
• Protected Tenancies - pre 15 January 1989 (this is a unique tenancy which is neither a CLT nor an AST)
   
• Common Law rules apply to eviction and not AST rules. 
• S.8 and S21 notices are not available for evicting CLT tenants.

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Tenancy:

• Occupation of property as a tenant.
• A "tenancy" loosely describes a tenancy agreement.
• A Back to Back tenancy is not actually a tenancy, merely describing the end of a tenancy quickly followed by a new tenancy.  This can present problems for professional cleaners if there is limited time available between the two tenancies.

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Tenancy Agreement:

• A contract by another name related to a tenancy.
• There are different types of tenancy agreement, some  are implied by statute and by common law others by choice and include two categories:  See ASTs and Non HMOs and Tenancy

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Tenancy at Will:

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Tenancy in Common:

• Introduced in the Law of Property Act 1925 under section 34(2), this is not strictly a rental term.
• It is applied to rental agreements involving joint tenancies,
• Few seem to know about it and yet fewer understand it's complexities. 
• Most discover it at the wrong end of the equation; when it is too late in the rare case where it affects you negatively!
• It is a means of dividing ownership into portions:
• equal or unequal shares,
• between two or more people.
• It is a shared tenancy with fixed shares in ownership.
• It is used to allocate portions of ownership impacting tax calculations like
• Capital Gains tax,
• Inheritance Tax and even
• Revenue tax.
• It also affects distribution of jointly owned property, both:
• before and
• after death,
• affecting survivor(s) and beneficiaries.
• To understand TiCs it is ideal to compare a Joint tenancy before returning to TiCs.
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Joint Tenancy:

• Any number of people can share a joint tenancy but only the first four named own it as such.
• The fifth, sixth, etc. tenants are considered to have an equitable (fair) interest in the tenancy.
• Most members of a joint tenancy never even realise the first four are categorised separately.
• Only when a problem arises does the distinction become important to enforce tenancy rules.
• In this simple scenario a husband and wife bore 2.4 children with no children to any previous marriage and with little investments.
• They would likely buy a property as Joint tenants.
• On the death of the first, the survivor automatically inherits the whole investment irrespective of their wills.
• Their wills might mirror each other (mirror will) or they might be wildly different from each other.  No matter, as far as the joint tenancy goes the last survivor gets the lot irrespective of their initial joint contributions.
• Any assets outside the joint tenancy are treated in accordance with their individual wills.
• The last to survive can bequeath both the property and separate assets (chattels) to whomsoever they wish.
• The winner (survivor of a joint tenancy) takes all!  All the value of the property  but not necessarily the chattels inside the house, which may be treated in accordance with any will.
• There are conditions attached to a joint tenancy called:
• 'The Four Unities':
• Unity of:
1. Possession,
2. Interest,
3. Time and
4. Term.
• What I call the PITTs. PITT.
• Unless each of these concepts is identical it is not a joint tenancy but a tenancy in common.
• Equal possession of the property (no segregations),
• Equal interests (not 50% but all own 100%),
• All tenancies commence at the same point in time and finally
• All tenancies are for the same term or duration.
• Any distinction - it is not a joint tenancy rather it would be a tenancy in common.
• Understanding "The PITTs" enables a better understanding of a rental joint tenancy. 
• The only room with an en suite cannot cost more than a room without. Fair ? No way! So how do you distinguish? You don't! Never!
• However, to overcome the inequity you simply:
• add the sum of the parts and
• agree the total of the sum is payable by all as joint tenants
• then divide the total of the sum (i.e. the total rent) equally between the number of tenants.
• Simple?  Not really!  But it is fairer.
• Imagine a group of six joint student tenants and
• six sets of parental guarantors?
• Aha the plot thickens!
• The guarantors can, if you agree, limit the guarantee to only their child's portion of responsibility... how?  do tell!
• by applying the same calculation for the same reason!
• Each Guarantor pays only one sixth, representing their child's risk.  "Oh right! - I still don't really get it?"
• The phrase Joint and Several Liability now slots nicely into the portion of the brain now called, 'no brainer'.
• Unfortunately even this phrase is no longer technically correct.
• "Oh!"  Under the Crystal Clear rules this is not everyday parlance and must thus be spelled out as to the implications for the tenants!  E.g.
• "Everyone owes everything and anyone can be called upon to pay everything in the event the others do not."
• You think this is complicated?
• Remember, in a joint tenancy all things must be equal.
• Not necessarily so in a TiC.
• Returning to the tenancy in common all things might still be equal but it can still be called a tenancy in common!
• Why? 
• Just because this was elected at the outset. 
• For tax propitiousness
• For division of shares to beneficiaries.
• So why can't I elect a Joint tenancy if i wish?
• You con - but only if the 4 unities are present otherwise it is not what you call it but what it is
• (see Street and Mountford above)
• It is a Tenancy in common by default if any of the 4 unities are absent!
• Simple?  I thought not.
• Ironically you can call a joint tenancy by its namesake, but it might still be a TiC. 
• "Explain it another way so I understand?"
• If any of the four unities are absent is is not a joint tenancy.
• In default it is a TiC.  "OK I've got it" - phew!
• Unless you revisit the definition then a year from now you will unlikely remember the distinction between TiCs and JTs.  Think of it as a name: J.T. Pitt had no TiCs (burrowing worms) - this acronym will serve you well if you are a law student studying landlord and Tenant Law - Good Luck!
• Back to TiCs -
  Tenancy in Common example in practice
• A couple with joint investments e.g. in property, might place their jointly owned investments in a Tenancy-in-Common agreement.
• Complicated?  You bet it is - at least today!
• But tomorrow when one dies it is simpler.  Ooer!
• This enables their assets to be disposed of in accordance with their individual wills and this in turn will doubtless save a small fortune in tax liabilities.  The survivor if a beneficiary of a will may derive a greater inheritance. 
  
  Changing the subject slightly from owner to renter:
• Note - to end a rental joint AST tenancy on the due date you must issue a notice to quit at least two months prior to expiration of the tenancy.
• You must also issue each named joint tenant with an individual notice to quit.
• At Leydon lettings we back this up with an email containing the information in prescribed form advising of the postal delivery.
• It would then be difficult to argue non-receipt if received by more than one means of delivery.

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Tenant: 

• In a residential lettings context this may be a group of individuals occupying a property: e.g.
• professional, student, benefit-recipient, asylum seeker, parolee, family, single, etc.
• In a commercial lettings context a business or company can be personified as a tenant.
• Tenants have the right to occupation and obligations to act in a tenantlike manner in accordance with any written or verbal tenancy agreement.

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Tenant Referencing:

Tenement:

• This means diferent things to diferent people.
• Historically this is a building on serveral storeys often poor quality multi-occupied buildings comprising several homes within.  Individual housholds share a common entrance and stairway as in a tenement block.
• There are other more complex legal meanings permitting rights over land owned by others who cannot prevent such access known as Easements:
• Dominant tenements
• Servient tenements
• See expressly granted Easements

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Termination:

• The end of a tenancy.

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Termination Date:

• The last date of a tenancy agreement after which tenants have no legal right to remain.
• However, see Sec. 21 Notice to Quit exceptions.

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Term - Duration:

• A duration of time - e.g. a term of years or, 
• for a term of 6 months. 
• Not to be confused with an academic term or semester.

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Terms - Academic:

• academic terms

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Terms:

• Description, 'in terms of', to distinguish specific meaning as specified in e.g. a contract.

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Terms and Conditions:  Tenancy Terms & Conditions:

• Website terms are likely to act as a guide summarising the main terms.
• The terms of the tenancy agreement signed by all parties are binding on all.

• Spoken statements (parol evidence) are unlikely to be binding particularly when a written contract (tenancy agreement) is provided.

• (Do not confuse terms and conditions with academic terms or a tenancy duration i.e. a tenancy term.

• An EU Directive in 1999 was introduced to protect consumers against one-sided tenancy agreements using unfair standard terms.

• A tenancy agreement must be written in plain clear language and easily understood.

• A contract term if held unfair is not binding.  E.g. if it a term puts either party to the agreement at a disadvantage.

• If the absence of an unfair term renders an entire agreement meaningless the whole contract becomes void.

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Terms of Business:

• This details the agreement between an agent and a landlord.
• This will identify any:
• Commission,
• Inspection frequency,
• Landlord preference as to the type of tenant (not permitting discrimination):
• e.g. professional, student, benefit recipient, asylum seeker, parolee, family, single, smokers, pets permitted, etc.
• Rent levels are set by landlords with agent guidance

Third parties:

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Timing:

• This is one of the most important, but often overlooked, aspects of letting.  Each genre of accommodation has its important times. 
• There are viewing seasons and if missed or not considered the consequences can be a serious loss of rent!
• Failure to grasp this is truly to fail in letting
• Student lettings are particularly time sensitive.
• Not just the viewing seasons but also the non-viewing holiday vacation maintenance.  All is time sensitive.
• Marketing properties in advance will increase letting prospects.
• See also Time is of the essence.

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Time is of the essence.

Title Deeds:

UKBA

Ultra Vires:

• To act beyond the powers granted, e.g. a local authority might disregard an Act of Parliament and in so doing might act beyond its remit.  A Judicial Revue would be the last option open to a victim of such act or ommission.

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Unfair Contract Terms Act 1977:

• The law will not enforce a term in a contract which is unfair.  See Terms and conditions

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Universal Credit

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Unrelated Tenants (see HMO criteria):

• Not related by blood, adoption, partnership or marriage.
• Two or more unrelated people in a house with three or more sharers are likely to occupy an HMO.
• A family of 15 related people occupying a single property is not an HMO.

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Utilities:

• Normally refers to the supply of services:
• gas, electric, water and sewerage
• now extended to include other emerging services like Broadband internet, TV license.

V

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A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

Vacancy

See void

 

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Vacant Possession:

• A property in the possession of the landlord or agent available to rent.
• "Subject to vacant Possession", is a clause landlords and agents should include in any tenancy agreement.  Should a tenant fail to leave at the last day of a tenancy the courts may not authorise eviction, but might hold the agent or landlord responsible for the ingoing tenants inability to take up occupation due to the ongoing tenancy.

Valuation Office Agency (VOA):

• This is is an executive agency of HM Revenue and Customs providing Government with valuations and property advice supporting taxation and benefits.
• This body sets fair levels for:
• protected tenanciy rents
• Council Tax Bands
• Local Authority Allowances (housing benefits):
• Rent Officers establish LA valuations for:
•  landlords and tenants. 
• These private rent valuations are based on average rents registered during the preceding 12 months.

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Valuation Survey (VALS):

• Lender's surveys establish a property's condition and value.
• This is ussually related to the purchase price (PP).  
• If the property is valued above the PP then the PP will be the maximum valuation whatever the real value is worth.  
• If the PP is below the loan requested then the actual value will be stated.
• This is not the same as a structural survey which is more thorough 
• A survey fee is paid by the borrower to the lender prior to the survey.  The surveyor is paid by the lender (significantly less than the lender receives).
• The valuation can be to determine the likely sale-price or rent achievable compared with other local properties of similar specification, amenities and condition and any recent rent or sale agreed.  The more recent the comperable property transaction the more realistic any valuation is likely to be.
• See Appraisals, Comperables, Surveys and valuations.

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Variable Rate Mortgage:

• This is in contrast to a fixe rate mortgage.
• The interest rate is variable in relation to bank of England base rates or LIBOR

Ventilation

Vender:

Verbal (Oral) Tenancy Agreement:

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Viewings:

• The process of visiting a house to ascertain whether it is suitable or the best available from a range of properties.

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Viewings seasons:

• There are Two seasons and
• Two types of viewings.
• Home Viewings in Canterbury, conducted November to January
• Room Viewings conducted Easter to August.
• After the Viewings Season has past, the choice of available properties is significantly reduced.
• Some students subsequently drop-out, creating available rooms.
• Most groups reserve during the house viewing season
• Those groups reserving later, have a limited choice from any newly available property.
• Unfortunately for late groups; most landlords having missed the groups then start to let houses to individuals thus depleting choice for any remaining groups and potentially forcing them to split up to find individual rooms in separate houses.
• A house with one tenant will deter groups joining the individual. Only other isolated individuals will consider sharing which can work out alright.
• Individuals reserve between the end of the House Viewings Season and the start of the academic term in September.
• Following “A” level results and Clearing any remaining available rooms are scooped up very quickly.
• If you miss the deadline for house viewings you may still be able to view individual rooms following a few students dropping out.
• But you would not have the same choice of:
• house, and location as close to uni.
• room or
• room-mates.
• In reality you would most often end up with the smallest room in the house following a reshuffle by the original and remaining tenants seeking to secure the best rooms for themselves and not you!
• This then makes it more difficult to find an individual housemate willing to accept the least desirable room with an existing group which may be incompatible.
• This is why drop-outs can cause such complications long after they have left, oblivious to the wake of problems they leave behind them.

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Vitiation:

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Vulnerable individual or group:

• Age related (young / old) at more risk than most.  Students are mostly young and less aware of risks.  See HHSRS risks to vulnerable people.

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Water Utilities:

• Water rates
• Sewerage rates (sewage is what passes inside the sewerage system)
• Each attract charges often paid together on a single invoice.

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Warden Assisted Accommodation:

• This normally applies to student accommodation in University Halls of Residence and purpose build student blocks. 
• Also known as manager assisted.

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Written or in Writing:

• Letter, e-mail, text.  As opposed to telephone or voice calls.
• Compare parol evidence/

Yield:

• Capital yield the amount of profit related to the value of bricks and mortar
• Revenue yield - the amount of profit related to rent

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You:

• The tenant, guarantor, landlord, agent, resident, reader or other appropriate person.

Zero-rate VAT: