LATEST: Landlord duo to repay tenants £34,000 after rent-to-rent deal goes wrong

A landlord pair have been ordered to pay more than £34,000 in back rent to six tenants ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - LATEST: Landlord duo to repay tenants £34,000 after rent-to-rent deal goes wrong | LandlordZONE.

LATEST: Landlord duo to repay tenants £34,000 after rent-to-rent deal goes wrong

A landlord pair have been ordered to pay more than £34,000 in back rent to six tenants after sub-letting their unsafe, unlicensed HMO via a rent-to-rent deal.

James and Catherine Doig were slapped with the rent repayment order despite insisting that they didn’t know about licensing rules.

The pair had let the property in Fordwych Road, Camden (pictured), to Rosemary Espinosa and Victoria Lai since 2009 on annually renewed tenancy agreements for a monthly rent of £2,600, who then sublet it to individual tenants, collecting monthly rental payments totalling £2,920.

Camden Council officers found nine tenants in four households using the property and sharing bathrooms and kitchen facilities.

They also uncovered numerous safety issues including obstructed fire escapes, inadequate fire doors, untested fire alarms and smoke detectors that didn’t work.

There were also large piles of personal items and furniture throughout the common areas of the house.

Ignorance and confusion

James Doig told the First Tier Property Tribunal that he knew nothing about HMO licencing, pleading ignorance, confusion and an inability to manage paperwork.

He claimed the pair didn’t realise it had been sub-let but admitted they had visited the property and seen other people living there who they didn’t know.

Doig suggested that Rosemary Espinosa and Victoria Lai should have applied for a licence.

The tribunal noted that the couple had never expressed concern about the dangers faced by the tenants as a result of their failures to comply with statutory HMO letting requirements, nor did they express any regret that this had happened.

Tenants Redindo Felix, Amor Bustamente, Rosemary Burias, Esperanza Ford, Luz Tonido and Ireno Tonido will be paid a total of £34,843 as well as £300 fees. Since the council’s enforcement order the Doigs have now applied for a licence.

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©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - LATEST: Landlord duo to repay tenants £34,000 after rent-to-rent deal goes wrong | LandlordZONE.

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BREAKING: End to unfair leaseholds in sight as Persimmon and Aviva promise change

A major breakthrough in the reform of leaseholds has been secure by the Competition and Markets Authority ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - BREAKING: End to unfair leaseholds in sight as Persimmon and Aviva promise change | LandlordZONE.

BREAKING: End to unfair leaseholds in sight as Persimmon and Aviva promise change

A major breakthrough in the reform of leaseholds has been secure by the Competition and Markets Authority (CMA) this morning.

The watchdog has secured commitments from two of the UK’s leading players in the leasehold house market to change their contracts to end doubling ground rents and enable existing home owners to buy their freeholds at a discount.

These changes follow a campaign by the CMA to look into unfair practices within the house building sector and enforcement action last year against several developers.

It has also been revealed that the watchdog has been putting pressure on several of the institutional investors who buy freeholds off house builders once developments are completed and who benefit from often unfair ground rent terms.

The two companies involved are builder Persimmon and freeholder Aviva.

Doubling removed

The insurance giant has promised to remove doubling ground rent and retail price index-based ground rent increase clauses from existing leaseholds and revert the leasehold to their starting ground rents.

Aviva will also reimburse property owners who have been affected by doubling ground rent clauses.

Persimmon, on the other hand, is to offer leasehold house owners – which are largely concentrated in the NW of England – the option to buy the freehold of their property at a discount, and reimburse those who have already bought their freeholders without the discount.

Pressure sales

The house builders has also agreed to give home buyers more time to purchase a property after reservation to stop ‘pressure sales’ during which many people don’t have the time to understand the annual costs of owning their home.

Andrea Coscelli, Chief Executive of the , says: “It’s good that Aviva and Persimmon have responded positively to this investigation, enabling these issues to be fixed for leaseholders.

“But our work isn’t done. We now expect other housing developers and investors to follow the lead of Aviva and Persimmon. If not, they can expect to face legal action.”

Housing Secretary Robert Jenrick says: “The Government – and I welcome their efforts to bring justice to homeowners affected by unfair practices, such as doubling ground rents, which have no place in our housing market.

“We have also introduced new legislation that will protect future homeowners by restricting ground rents in new leases to zero and I would strongly urge other developers to follow suit in amending their historic practices.”

Other developers and freeholders facing the CMA’s wrath over leaseholders include Taylor Wimpey, Countrywide Properties, Brigante Properties, and Abacus Land and Adriatic Land.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - BREAKING: End to unfair leaseholds in sight as Persimmon and Aviva promise change | LandlordZONE.

Source : Landlord Zone More   

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