Prior to 1989 most residential tenancies were based on the 'rent acts' which gave tenants substantial rights. This type of tenancy was known as a protected or statutory tenancy and some still exist.

Since 1989, landlords have been able to implement an Assured Shorthold Tenancy. Many mortgage lenders will only accept this type of tenancy, as it enables them to take possession of the property quickly should the lender default on the mortgage.

A shorthold tenancy provides the tenant with security of tenure for the contract period (normally 6 months), but none thereafter.  It is however possible for the tenant to request another tenancy after this period expires.

If you are purchasing a property with sitting tenants, it is important to establish the type of tenancy and the rights it gives the tenants. It can sometimes be difficult to get a mortgage with sitting tenants and professional advice should be sought.

If you are letting a property for the first time, it is advisable that you create an Assured Shorthold Tenancy Agreement. Take advice over the terms of the tenancy, from a local letting agent or solicitor that specialises in property. You could also contact and become a member of the National Landlords Association www.landlords.org.uk or the Residential Landlords Association www.rla.org.uk

If you wish to let your own mortgaged home, you will need to obtain the consent of your mortgage lender to let. If you let the property without consent you will be in breach of contract (look in your mortgage deed for a clause prohibiting letting without consent of mortgage lender) and the lender could take action against you.

If your mortgage lender is unwilling to consent to your application then you could remortgage to an alternative lender on a buy to let basis. You must ensure the viability of this by looking at the charges for redeeming your current mortgage (if any) and the charges to enter a buy to let remortgage contract. One of our qualified Independent Mortgage Advisors will be able to assist you with this.

It is also necessary to obtain the consent of your building insurers to let the property. If this is not available then you should switch to another insurer. There are many building and content insurances specifically designed for landlords, and Independent Mortgages Online Ltd are in a position to advise and recommend on a selection of Buildings Insurance, and Rent and Legal Guard insurances which will cover your legal costs and replace your rental income in the event your tenant defaults and you have to instigate eviction procedures. Please contact one of our advisors for further details, as the aforementioned products are specifically designed for let properties and require specialist advice.

Gas appliances should be inspected every 12 months by a CORGI registered technician. A record of the gas check should be kept indefinitely for your insurance purposes. If the gas safety checks are not carried out, you will be liable for damages should any harm come to your tenants as a result of your failure to maintain gas appliances. There are a number of insurance products on the market currently, which offer this service together with Home Emergency Cover. For further details of these policy providers you can contact the Association of British Insurers www.abi.org.uk

Electrical fittings and appliances should also be checked on a regular basis.

There are no specific fire regulations unless the property is classed as a house in multiple occupation (HMO), but again it is advisable to at least fit the property with a smoke detector alarm on each floor level.

Where a property is let to several unrelated people, for example bedsits, the local authority may class this accommodation as multiple occupation. This is likely to be the case where there are over 4 unrelated occupants.

In this situation, it may be necessary to register the property with the local authority. You may also need planning permission to change the use from single residential occupation to multiple let occupation. The planning department may also wish to inspect your property for fire escape routes and health and safety purposes.

The property insurers should be told if the property is in multiple occupation, as it is likely your premiums will change or a new policy altogether is needed.

The landlord is responsible for the payment of council tax.

There will be higher degree of management required owing to the greater number of tenants, and again home emergency cover, fire safety precautions, and good standards of property maintenance are advisable.

Further information can be obtained about this from the National Landlords Association.

For a advice and a quotation for a buy to let mortgage please call and speak to one of our advisors on 01282 861181 or email enquiries@independentmortgages.uk.com

This web page is a guide only and is not intended as Professional Advice. Independent Mortgages Online Ltd recommends that you seek Independent Legal Advice on the above issues and cannot be held accountable for issues arising as a result of any of the information above.

More Buy to Let information:

Buy to Let Mortgages
Buy to Let Taxation