Property FAQ

If you are new to the property game, it's probably best not to. It's time-consuming, stressful and you lose money while the property is not being let out.

If you are experienced, have the time and can afford to do without the incoming rent, then it could be worth your while. Always remember to double the amount you think you'll spend because unforeseen costs almost always emerge.

Find more landlord, tenancy agreement and buy-to-let information.

According to The Buy-to-Let Bible, a good buy-to-let property will give you around 12 per cent of the purchase price each year in income, so if your new buy-to-let property costs £45,000, you would hope to get around £450 per month in rental.

If similar properties in the area are rented out at £350 per month, you know your buy-to-let property will struggle to bring in the rent you need and maybe you should consider investing in buy-to-let somewhere else.

Find more landlord, tenancy agreement and buy-to-let information.

Your tenant can give notice to end their tenancy agreement provided they can find an acceptable replacement tenant for you. If they can't find a replacement tenant, they will be responsible for the rent until the end of the tenancy agreement, even if they have physically left the landlord’s property.

In any case, your tenant cannot end the tenancy agreement during the first three months of their tenancy.

Find out more about a landlord's rights and responsibilities in Residential Lettings.

• Find out all about tenancy agreements and tenant's rights and responsibilities in Renting: The Essential Landlord's Guide to Tenant's Rights.
• Or make a tenancy agreement with our tenancy agreement downloads.
• Or browse our entire range of free articles, legal forms and landlord guides in the Landlord and Tenancy category.

Assured shorthold tenants have the right to refer rent matters to the Rent Assessment Committee. In England and Wales, however, any referral must be made within the first six months of the tenancy. In Scotland, it can be made at any time during the period of the tenancy.

The Rent Assessment Committee can only consider the application if there is a sufficient number of similar dwelling houses in the area, and will only reduce your rent if it considers it to be significantly higher than might reasonably be expected, compared to rent paid under similar tenancies in the locality.

Once a rent has been determined by a Rent Assessment Committee, you, as a landlord, cannot serve a notice of increase on your tenants until more than 12 months have expired since the date of determination.

• Find out more about a landlord's rights and responsibilities in Residential Lettings.
• Find out all about tenancy agreements and tenant's rights and responsibilities in Renting: The Essential Landlord's Guide to Tenant's Rights.
• Or make a tenancy agreement with our tenancy agreement downloads.

A tenant's obligations to their landlord can be summarised as follows.

Repairs

Your tenants are obligated to use the property in a 'tenant-like manner', which means that they will be responsible for any repairs that are their own fault, even if they would otherwise fall to be paid for by the landlord.
Generally, the tenant is responsible for the condition of the interior of the property, but the landlord can restrict their tenants in the tenancy agreement from doing any redecoration.
The tenant must pay for anything that is broken or damaged in the landlord’s property during the tenancy and the landlord can deduct the cost of this from the damage deposit that is taken at the start of a tenancy agreement.

Outgoings

The landlord will not normally want to be stuck with paying a tenant’s bills, so tenancy agreements provide for the tenants to pay them. However, if there are a number of different tenants coming and going on individual tenancy agreements, the utility accounts may have to be in the landlord's name. If there are any accounts that the landlord will pay, for example some landlords pay the water rates, then the tenancy agreement should be altered to show this.

Use of the property

Your tenant’s must use the rented property solely for residential purposes, as otherwise you, as a landlord, may be placed in breach of planning regulations.
The landlord will also want to prevent the tenant from letting anyone else live at the property, as they will only want tenants whom they have checked and approved.

Access for the landlord

This is important, as the landlord will need to visit and inspect the rented property from time to time, to ensure that the rented property is in good condition, and to do any repairs and gas safety checks.
The landlord will retain keys to the rented property; however, they should never use these to gain access to the rented property without the tenant’s consent, except in an emergency.

• Find out more about a landlord's rights and responsibilities in Residential Lettings.
• Find out all about tenancy agreements and tenant's rights and responsibilities in Renting: The Essential Landlord's Guide to Tenant's Rights.
• Or make a tenancy agreement with our tenancy agreement downloads.
• Or browse the lot in our Landlord and Tenancy category.

If you let a room in your house and you are an owner-occupier, or a tenant who is sub-letting, the first £4,250 of any income is tax free, i.e. a rent of £81.73 per week is tax free.

This means you have in your own house access to over £4K income tax free every year!

If the rent is higher than £4,250, you either elect to pay tax on the surplus above £4,250 (without relief for expenses) or you can treat the arrangement as being a furnished letting and prepare accounts.

• Find out more about the Rent a Room Scheme.
• Find more landlord, tenancy agreement and lodger agreement information.

If you let out holiday accommodation, the definition of furnished holiday lettings is as follows:

• The accommodation must be available for holiday lets for at least 140 days per year.
• The accommodation must be let for 70 days in the year.
• No let must exceed 31 days.

The income is treated as earned income (a trade) attracting Capital Gains Tax rollover relief and business asset taper relief.

Tax-saving ideas worth thinking about...

• Rollover of capital gains on the sale of trading assets into the purchase of holiday accommodation.
• Any gain on the sale of the holiday accommodation may eventually attract Capital Gains Tax at only ten per cent.
• You can claim capital allowances on furniture and equipment.
• If you make a trading loss from your holiday lets, you may offset it against your other income or capital gains in the same year or the previous one.

However, don't buy the accommodation with a substantial mortgage because HM Revenue & Customs may regard your motives as not being commercial and don't forget about the VAT consequences if you are VAT-registered.

• Download our legal form for making a Holiday Letting Agreement today.
• Find more landlord, tenancy agreement and buy-to-let information.

If you receive income from furnished lettings, it is taxed under the property income rules.

If you provide laundry, meals, domestic help, etc. for your tenants, then you may be able to claim that you are running a self-employed business - as you usually can if you are providing holiday lettings (see below). The advantage of running your property enterprise as a business means that there are usually more expenses you can claim against Income Tax and, in addition, you may be able to claim business asset taper relief for Capital Gains Tax and business property relief for Inheritance Tax purposes.

Find more landlord, tenancy agreement and buy-to-let information.

Here are five hints:

1. Decorate the property in a neutral style
2. Buy property in high demand areas
3. Be less fussy about the type of tenant you are willing to accept
4. Buy a type of property for which there is high demand
5. Advertise the property in plenty of time before the end of the current tenancy

Find more landlord, tenancy agreement and buy-to-let information.

If you're a landlord who wants to evict your tenant, you must take steps to serve the proper form of eviction notice. You will have to evict your tenant using either a Section 8 Notice, which should be used after the tenant is in rent arrears of more than eight weeks/two months (depending if the rent is paid weekly or monthly), or a Section 21 Notice (which can only be used if the fixed term has ended). The Section 8 Notice has a notice period of not less than two weeks, and a Section 21 Notice has a notice period of not less than two months and it must not end before the end of the fixed term. In many cases, you can use both eviction notices.

All of these eviction notices are available, ready to use, in Lawpack's Residential Lettings Kit, with detailed guidance on how you can terminate a tenancy, or you can download immediately Lawpack's Section 21 Notice here.

• Find out more about evicting tenants with our article 'Managing and Evicting Troublesome Tenants'.
• Find more landlord, tenancy agreement and buy-to-let information.

If you're worried about a prospective tenant's ability to pay the rent, it's wise to take a guarantee from a third party. For example, guarantees are often taken from parents of students when they sign tenancy agreements. However, you should take up references and do credit checks on guarantors, as you would on a tenant; it's no good having a guarantor who is as impecunious as a tenant.

It's unwise to allow the tenant to take the tenancy agreement away to get the guarantor to sign it; it has not been unknown for tenants to forge guarantors' signatures in these circumstances. If the guarantor doesn't sign the agreement in front of you, make sure that the signature is witnessed by someone you can trust, who can vouch for their identity.

Find more landlord, tenancy agreement and buy-to-let information.

In order to create a proper Short Assured Tenancy, you must complete an AT5 Notice of a Short Assured Tenancy which must be used with a Short Assured Tenancy Agreement. The completed AT5 Notice must be given to the tenant(s) before the agreement is signed and dated. It can be given at any time before the agreement is entered into. However, you must be able to prove that it was given to the tenant before he or she signed the agreement, so it's wise to give notice at least one day in advance.

The legal form AT5 Notice is provided free of charge with Lawpack's Short Assured Tenancy Agreement download.

Find more landlord, tenancy agreement and buy-to-let information.

In England and Wales, strictly speaking, there is no need to have signatures witnessed if the tenancy agreement is for a term of less than three years. However, it may be a good idea to have any guarantor's signature witnessed, particularly if they do not sign in front of you. The witness can be the same person for all three signatures on the agreement.

In Scotland, it's recommended that the tenancy is witnessed, as it then becomes self-proving.

• Download a tenancy agreement for England and Wales.
• Download a tenancy agreement for Scotland.

If you have a mortgage or are going to let a leasehold flat, you need to check to see if you need to obtain permission from your mortgage company or your landlord before letting. If consent is not obtained, this could have serious consequences, including the lender or landlord taking possession proceedings against you. Your mortgage company may impose conditions for letting; needless to say, you should be careful to comply with these.

Find out all you need to know about tenancy agreements and letting your property in Residential Lettings.

To increase your chances of finding a tenant and letting your property you can try these ideas (in this order):

Reduce the rent
If you can't let your property at the price you want, then try reducing the rent - even as little as £2 per week less can make a difference.

Be less picky
For example, if you've asked for non-smokers, then consider smokers. A local cleaning company may be able get rid of the smell quite easily.

Put furniture in the property
This will be expensive and is no guarantee that the place will attract tenants. Consider this if you are getting calls rejecting the property because it's unfurnished.

Consider selling it
This is a drastic step, because most properties in the UK are lettable - it's just the rent you are asking for that might put off possible tenants. However, if you are experiencing trouble letting it, think about getting out! You could sell it and buy something else.

You can also...

• Learn the secrets of buy-to-let success with The Buy-to-Let Bible.
• Get the lowdown on landlords, tenants and renting properties in Residential Lettings.
• And when you have found your tenants download a tenancy agreement.
• Or browse all of our free articles, landlord guides and tenancy agreement forms in the Landlord and Tenancy category.

As a landlord you have a number of unavoidable obligations under the law towards your tenants. Here are the main landlord responsibilities.

Repairing covenants
Under the Landlord and Tenant Act 1985, the landlord must look after the structure and exterior of the rented property, and the installations for the supply of services (gas, electricity, water, sanitation and heating). You'll find this in the Assured Shorthold Tenancy agreement for England and Wales and in the Short Assured Tenancy agreement for Scotland. The landlord should also look after the roof of the rented property, the drains, gutters and the garden, if there is one.

Gas safety
Under the Gas Safety Regulations a landlord must have the gas equipment at a property inspected every year by a Council for Registered Gas Installers (CORGI)-registered plumber and give the certificate to the tenant. Landlords should check the current regulations with their local health and safety executive, who enforces them.

Furniture, electrical equipment and general product regulations
These regulations require a rented property's furniture to be fire-resistant, and all electrical equipment and other items in the rented property to be safe. You can get further information from your local trading standards office.

Covenant of quiet enjoyment
This is part of all tenancies and it means the tenant should be able to live without interference. The landlord can't enter the rented property without the tenant's consent (except in an emergency), should keep the rented property in a proper condition, and should not do anything (or allow anyone else to do anything) which would affect the tenant's rights, for example, stopping services to 'persuade' the tenant to leave.

A landlord who lets a number of separate flats in a property has a duty to his other tenants because of the covenant of quiet enjoyment. For example, if one tenant is a nuisance, the other tenants will look to the landlord to solve the problem, and if necessary evict the tenant who is causing disruption.

Insurance
The landlord has an obligation to insure the rented property and its contents (but the tenants are responsible for insuring their own possessions). The landlord should be certain their insurance policy is suitable for rented property - his normal household insurance generally will not be. Check the terms of the policy carefully, as some policies exclude cover for lettings to some types of tenant.

The agreements included in the Residential Lettings Kit allow the landlord to give the tenant a copy of the insurance policy. This is so the landlord can hold the tenant responsible if they do anything that voids the insurance or causes the landlord's premiums to increase.

• Starting out as a landlord? Let the Residential Lettings Kit walk you through the process and kit you out with all the legal forms you need.
• Get the lowdown on the life and responsibilities of a landlord in our Complete Guide to Residential Lettings.
• Find out the rights (and responsibilities) of your tenants in Renting: A Complete Landlord's Guide to Tenant's Rights.
• And make sure you can put it in writing with Landlord's Letters.
• Or browse our articles, FAQs, legal forms and guides for landlords, tenancy agreements and buy-to-let.

Stamp Duty Land Tax was introduced on 1 December 2003 and replaces the 'old' Stamp Duty on land. In the case of freehold property, the Stamp Duty Land Tax payable by the purchaser is as follows:

• up to £125,000 - Nil
• over £125,000 and up to £250,000 - 1 per cent
• over £250,000 and up to £500,000 - 3 per cent
• over £500,000 - 4 per cent

Normally, the house or flat in which you live is exempt from Capital Gains Tax when you sell it. The property must have been your only or main residence during the period of ownership. During the last 36 months of ownership, the property is always regarded as your main residence even if you don't live there. You can also be absent for periods totalling three years and for any period throughout which you worked abroad. In addition, if you had any work which required you to live in job-related accommodation, that also does not stand against you for Capital Gains Tax purposes. Any periods of absence in excess of the periods allowed result in the relevant proportion of your sale profit being charged to Capital Gains Tax.

If a specific part of your house is set aside for business purposes, then that proportion of your profits on the sale of the house will be taxable. However, if you don't have any rooms used exclusively for business purposes, you will not normally be liable to any Capital Gains Tax if you sell your house.

Special consideration needs to be given to houses with a lot of land alongside them. If land is sold in excess of what HM Revenue & Customs regards to be a normal area of garden in character for the house that is being sold, then part of any gain on the sale of such extra land will be subject to Capital Gains Tax.

If you owned two properties, within two years of buying the second one you should have sent in a letter (called an 'election') in which you disclosed to the taxman which you were treating as your private residence for Capital Gains Tax purposes. Otherwise, the taxman will decide for you.

Apart from the annual exemption, you are entitled to set the costs of acquisition of the asset, including purchase price, and the sale costs against the gain.

In addition, if you bought an asset on which you have incurred enhancement or improvement expenditure, then that too will be allowed as a cost. Certain costs such as accountant's fees are not allowed, but if you are looking for allowable costs, and because this subject can be so wide-ranging, we suggest that you talk either to a professional accountant or to HM Revenue & Customs.

Every year there is an annual exemption from Capital Gains Tax and in the year 2008/09 your first £9,600 of gains is exempt. In the case of trusts, it's £4,800.

The rate of Capital Gains Tax is 18 per cent for individuals, partnerships and trusts.

To speed up the house selling process, the following set of papers should be ready for the house buyer:

• Property Information Forms
• Fixtures, Fittings and Contents Form
• Office Copy entries in the Land Registry registers, and a filed plan
• Copy of lease (if leasehold)
• Copy of any relevant Consents (to modernisation, etc.)

It's also advisable to get local water and environmental searches completed.

If you don't know whether or not your house is registered with the Land Registry, you can find out by applying for an 'Index Map Search'. 

You fill in form SIM including a description of the property, enclose the relevant fee and the Land Registry will tell you whether your house is registered, and the title number. 

If it's registered, you can then prove title of ownership by obtaining an official copy of the register. This is done by sending off Form OC1 to the Land Registry, which will then send you a photocopy.

When you are selling your house or flat you should first collect information on two points: how much similar properties have actually fetched, and what opposition there is in the market on this very day. Don't let anyone flatter you into wishing for the moon. There are plenty of estate agencies who, to get a job, will raise your hopes unduly.

Start comparing by collecting details of properties of a similar age and type from your local newspaper's Houses For Sale column. If an estate agent to whom you apply for particulars asks for your name and address give it. When you have found some properties which you think will make useful comparisons, go and view them. Ask the house sellers how they decided on their house sale price. If the way they shape the reply is persuasive, note it for future use; if not, make a note not to say such silly things yourself when your time comes.

Tradition says that house buyers always want something knocked off, so when you have worked out the going house sale price for a house such as yours, add about two per cent on to that figure to arrive at your asking price, thus leaving yourself a little room for negotiation.

Good luck with your house selling!

What is it like at a property auction? Here's a quick guide to what to expect.

1. Property Auction rooms welcome anyone who swells the crowd, who is dressed reasonably whether they're going to bid or not, and who will keep fairly quiet during the property auction.
2. There is always a constant to-ing and fro-ing of people. You can arrive and leave whenever you like, but try not to distract people while bidding on a lot is taking place.
3. It's not unusual to arrive late or leave after the lot you're interested in, but you should try not to miss the property auctioneer's opening speech and announcements.
4. Property Auctioneers often seem to comment on vacant seats available at the front of the property auction room, even though lots are no more expensive whether you are sitting at the front or the back. Use the empty seats if you want to, but it's also good to stand where you can see any other bidders.
5. You can choose whether to sit or stand but if you want to bid, you need to be in a position where you can see the property auctioneer and they can see you easily.
6. Property Auction rooms usually open about one hour before the property auction starts. Most of the audience turns up in the 20 minutes before proceedings start. Property Auctions often start about five minutes late, but don't rely on this. If you have questions to ask the property auctioneer's staff or solicitors before the property auction, try to arrive half an hour before the property auction starts.
7. When you arrive at the Property Auction, always check:
   • if there have been any additions or amendments to the lots and lot details;
   • if the lot in which you are interested has already been sold or withdrawn;
   • if the lots are to be offered in alphabetical or numerical order.
8. If you want to bid, don't be shy about getting the property auctioneer's attention by waving or calling out.

Find out more about Property Auctions in our complete guide to Buying Bargains at Property Auctions.

And learn the secrets of buy-to-let success with our Buy-to-Let Bible.

Properties that are difficult to sell
The property auction route has often proved more successful than private selling for properties that are hard to sell. This might be because some people at property auctions are willing to take a chance on a property, particularly if they think it looks like a bargain.

Repossessed houses
Unfortunately for their previous owners, these properties are very common at property auctions. Whilst feeling for the people who have lost their houses, there is no doubt that house buyers benefit from these situations.
Investment properties

Properties that are owned for the income they produce (such as offices or shops) are often included in property auction catalogues. Investors cover a range of buyers from large pension funds right down to individual investors looking for a return on their money.

Find out more about Property Auctions in our complete guide to Buying Bargains at Property Auctions.

And learn the secrets of buy-to-let success with our Buy-to-Let Bible.

Here's your essential buy-to-let checklist when looking to buy a buy-to-let property.

Kitchen
Is the kitchen big enough to accommodate a small dining table? This is attractive if there is only one reception room and it turns the kitchen into a kitchen-diner.

Smallest bedroom
If the smallest bedroom is smaller than 6' 6" in any direction, then it's not a bedroom! You need to be able to get a bed in a bedroom, so this room can only be considered as a study or a baby's room. You need to think about this when deciding what type of tenant you are looking for. If you're looking for two professional people to share a two-bedroom flat, then the second bedroom must be bigger than 6' 6".

Bathroom
Is there a fitted shower? A bathroom is a lot more desirable if there is a power shower. If there are two bathrooms then the property is very desirable as a buy-to-let investment, even if one is only a shower room.

Heating
An old heating system can be expensive to replace. If possible, get it checked before you buy the house as a buy-to-let project. It's your legal duty as a landlord to provide heating and to issue a gas safety record.

Electrics
Are the electric sockets old? This will tell you that at some point the whole electric system will need rewiring.

This checklist covers the basics but you also should be considering the buy-to-let properties' potential yield.

• To learn about buy-to-let yield you need The Buy-to-Let Bible.
• Or you may want to get the legal lowdown on house buying, house selling and conveyancing (and plenty of practical hints too!) 
• Or have a browse through our landlord's guides and tenancy agreements in our Landlord and Tenancy category.

It's possible to borrow everything you need for investing in a buy-to-let property by taking out an unsecured personal loan and using it as a deposit on your new property. However, this is a risky way of investing, and you should probably only do it if your income is much higher than your spending.

Another option is to arrange a 100 per cent mortgage. Some mortgages still offer several times your salary, plus your partner's salary, and you can find a list of providers in Lawpack's book The Buy-to-Let Bible.

If you do have enough money for a deposit on your new buy-to-let property, it's often easier to get a buy-to-let mortgage than a normal one, because the property rental income - not your income - will fund the repayments.

Find more landlord, tenancy agreement and buy-to-let information.

1. The draft contract for the hose sale has been agreed and one of your copies has been returned unsigned to the hose seller.
2. Satisfactory replies have been received in the house seller's Seller's Property Information Forms or Enquiries before Contract.
3. You are satisfied with the replies you received to the forms you sent to the council, what you learned on your fact-finding tour and to your water company and enviromental search.
4. If the Office Copies revealed anything such as a caution or a Matrimonial Home charge, the house seller has obtained cancellation of the registration of such a charge or notice.
5. You have got a firm offer of a mortgage for buying a house.
6. If it applies, you have your own house sale tied up. If a deposit cheque bounces, the house sale contract is automatically washed out.
7. You have checked that everyone over the age of 18 who lives in the house is prepared to move, whether their names appear on the register or not, by getting them to sign a statement to this effect in the contract.
8. There are no problems with the survey of the property.

Learn more about House Buying, House Selling and Conveyancing.

Or organise a DIY house sale and save £££s with Lawpack's Sell Your Own Home Kit.

1. Compare the information given in the preliminary enquiries with what the solicitor has written concerning the items, referred to as 'chattels' in the Agreement, which the house seller said they were including in the house sale price you agreed?
2. Is the amount of deposit for the house sale stated correctly?
3. Check to whom and under what conditions the deposit is to be paid. You should insist that whosoever receives the deposit does so as stakeholder, because a stakeholder cannot part with the money unless they have been satisfied that completion has taken place.
4. There should be a clause stating the capacity in which the house seller sells, called 'Title Guarantee Full/Limited'. If such a clause doesn't appear in the draft house sale contract, ask for one to be inserted.
5. Check that the address and/or description of the property to be sold is correct. If the property being sold is part of an existing registered title, then you should also be provided with a plan, for more detailed inspection.
6. If you were told that you are buying a freehold, check that it says so in the description.
7. If the house seller agreed to include items such as carpets in the house sale price, they should be in the house sale contract, but if the house sale price you are paying is just over the level at which stamp duty becomes payable, fix a price for the item (£x) and ask that the clause has added to it 'and £x of the purchase price shall be apportioned to these items'.
8. Look at the rate of interest (contract rate) in the house sale contract. This is usually four per cent above bank base rate. If it specifies the Law Society's rate, that is four per cent over the base rate of Barclays Bank. You will be expected to pay interest at that rate if you delay completion beyond the date which eventually gets inserted in the house sale contract.
9. Check the covenants clause so that you know everything there is to know about the property, because you buy property warts and all, and once you are the owner, you will be responsible for seeing that the covenants (if any) are adhered to.

Find out more about house buying, house selling and conveyancing.

You need to complete an Application Form S27A Landlord and Tenant Act 1985, which is available from the Residential Property Tribunal Service's website at www.rpts.gov.uk. The Residential Property Tribunal Service, which settles disputes between landlords and tenants about service charges and other issues, has five regional Leasehold Valuation Tribunals (LVTs) in England.

You must send the completed form, along with a copy of the lease and a cheque in payment of the application fee to the nearest Leasehold Valuation Tribunal or Rent Assessment Panel. The Rent Assessment Panel is another part of the Residential Property Tribunal Service. The amount of the application fee depends on the amount of service charge being challenged.

There are three possible tracks by which a service charge dispute can be handled by the Leashold Valuation Tribunal (LVT). When you are completing the form, you will have to state the track which you consider to be most suitable. The three tracks, from the simplest and fastest to the slowest and most complex, are:

• on paper, without a hearing;
• fast track, with a hearing;
• standard track, with a hearing and possibly a pre-trial review.

If a case is handled 'on paper', the Leashold Valuation Tribunal (LVT) panel will receive written evidence from each party and will then reach its decision without holding an Leashold Valuation Tribunal (LVT) hearing. The 'fast track' and 'standard track' procedures require an Leashold Valuation Tribunal (LVT) hearing and the applicant must pay a £150 hearing fee for this. A case can be considered on the fast track if it is simple and is not expected to generate much paperwork or argument. The Leashold Valuation Tribunal (LVT) says that it tries to hold fast track hearings within ten weeks of receiving the initial application. The standard track is for more complicated cases, including those in which several issues need to be decided and/or a lot of documentation will be required. With standard track cases, both parties may be invited to a pre-trial review, a kind of mini-hearing, so that the Leashold Valuation Tribunal (LVT) can decide on the next steps that need to be taken before the final hearing. Standard track cases often take several months from start to finish.

Learn more about Leaseholds and Leasehold Property.

Find more landlord, tenancy agreement and buy-to-let information.

Ask the vendor about the level of service charges and if the sum appears very high for the services that the freeholder seems to provide, ask why. It may be that the building in inefficiently managed which might herald problems later on. You should also ask for copies of the service charge accounts over the last few years, to give you some indication of the consistency and level of charges. Vendors should dig out the service charge accounts over the past few years and have copies ready to give to you or your solicitor in response to the inevitable question!

You should also ask the vendor and his landlord whether there are any proposed 'major works'. These are works which will cost over £1,000 and must be notified to the leaseholders before they can be carried out. It's best to ask this question before you buy so that you don't find yourself landed with a hefty bill for new windows and all the disruption that will inevitably be involved in the work shortly after you move in. The vendor may also be able to give you some idea about how often the freeholder carries out major decorating work (unless it's prescribed in the lease) so you should be able to work out how often you will be faced with a bills for external redecorations and all the paraphernalia which goes with it.

Find out more about flat buying, flat selling and conveyancing.

Learn more about leaseholds and leasehold property.

Yes, it's consumer best-practice, when considering whether to buy a leasehold property, to obtain a copy of the lease and examine it carefully before making a decision. The lease describes all the rights and obligations of the landlord and the leaseholder. Unfortunately, in too many instances, leaseholders are prepared to buy a flat without first seeing the lease. Many estate agents claim that it's too difficult for them to obtain copies of leases for every would-be flat or house buyer and many flat or house sellers don't hold the original lease themselves, because they have asked their solicitor to keep it, or their mortgagee has it.

If the owner of a property says that they don't have a copy of the lease or is slow in providing it, you should write to the Official Copy Deeds Section of the relevant HM Land Registry office explaining why the lease is required and enclosing the relevant Land Registry form and payment. It usually costs less than £10 to get a copy.

Find out more about house buying, house selling and conveyancing.

Learn more about leaseholds and leasehold property.

Many buildings that operate under leases dating back to the mid-1900s operate on the inefficient basis of charging leaseholders for any major works that are done, when they are done. This can result in a leaseholder paying, for instance, an annual £4,000 in service charges within five years of buying the flat, only to be hit by a staggering £10,000 bill in the sixth and seventh years when major works are done. The remedy for this type of spiky cost is to smooth out leaseholders' annual payments by creating a sinking fund or reserve fund. This is used to save up money over a period of several years, in order then to spend it on major works when needed. In order for a sinking fund to be created, the lease must allow for this. Many older leases have no clause or provision for a sinking fund.

When a landlord collects money from leaseholders for a sinking fund, he or she is essentially holding this money and the interest that it earns on trust for the leaseholders. The law says that sinking fund money must be held in a trust account for the building that is separate from the account in which regular service charges are held. If and when the building freehold is sold, the money in the sinking fund must be returned to the leaseholders.

Find out more about house buying, house selling and conveyancing.

Learn more about Leaseholds and Leasehold Property.

Because leasehold is a tenancy, it's subject to a rent on the land which is paid to the freeholder. This is paid by the leaseholder in the form of ground rent. The amount of ground rent payable must always be identified in the lease. In some cases, the ground rent will be set at a specific and unchanging amount. In other instances, the lease will identify the initial ground rent and increased amounts payable after specific periods of time.

The leaseholder normally has to pay the ground rent on an annual basis or every six months. The landlord or the managing agent company employed by the landlord to run the building usually sends the leaseholder an invoice covering both ground rent and service charge.

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Learn more about leaseholds and leasehold property.

Many flats are advertised as having a 'share of freehold'. This doesn't generally mean that the flat itself has freehold title; there will still be a lease and the covenants contained in it will have to be adhered to. What it will probably mean is that the freehold on which the block stands is owned by a limited company and the shareholders of that limited company are the owners of the flats in the block. If this is the case, and it's fairly common, the purchaser must ensure that the vendor transfers his share in the limited company to the purchaser on completion of the sale of the property.

Leaseholders who own the freehold of the block through the means of a limited company have more freedom to deal with the flat because if they don't like the lease, they can change it. However, even if the flat you are thinking of buying does come with share of freehold, changing the lease might not be so easy, as you are not able to act alone and agreement with your new neighbours would still be required.

• Find out more about flat buying, flat selling and conveyancing.
• Learn more about leaseholds and leasehold property.
• Free yourself up to buy your freehold.

When flat or house buying, you must always carry out a local land charges search. The local land charges search is a series of standard questions designed to give any potential flat or house buyer as much information as possible about the property and is undertaken by your local authority.

Searches have two parts submitted using LLCI and CON29 forms. The LLCI search is a search of the Local Land Charges Register. Examples of what it would tell you are if the property is a listed building, if it's in a conservation or smoke control area. It also tells you if any trees on the property are protected by tree preservation orders.

The CON29 enquiries consist of standard information on local plans for the area, planning decisions affecting the property and if the roads by the property are maintained at the public expense or are private roads. It also tells you any environmental information.

In addition to this local authority search, an environmental search and a separate water drainage search are now required by mortgage lenders.

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Custom seems to say that fixtures are permanencies and semi-permanencies that one can't simply pick up and walk away with. Basically, it includes things which are attached to the property. One way of looking at it is whether removal of the thing in question would damage the property. Television aerials, for example, are fixtures. You can put the lamp shade under your arm and walk away with it but the light switch is a different matter. It's the bits and pieces other than what are obvious parts of the house (such as the doors) and what are obviously not part of the house (such as a heavy plant pot in the garden that's too heavy to lift) which cause the trouble. Situations where it's not strictly breach of contract to remove an item but would be a breach of good faith to do so should be avoided.

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Yes, ask to see last year's receipts for the fuel used. If it's a system such as gas, ask if it has been regularly serviced. Find a radiator at the highest point in the house and as you turn the air-release screw hold a lighted match to it. If you set up a lighted gas jet it isn't because gas has got into the system, it is the product of some corrosion that has started. It might only need some anti-corrosion fluid putting in the system - on the other hand that might not be sufficient. In any case, all the more reason to have a careful look round for leaks particularly at joints. Leaks also tend to make nasty stains on carpets.

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A sure sign of wiring that has had its day is the plug with round pins. In older houses, during your inspections of the roof space and cellar, look out for any wires that pass across the joists. If you see two element wires twisted together and festooned along, you can be pretty sure some re-wiring is necessary to bring the electrical system up to modern standards of efficiency, and, above all, safety.

The area electricity board will be only too glad to make a visual inspection without charge and they will give a free quotation for any work required. If for any reason the supply is cut off, as it no doubt will be, if there is to be any gap between the time when the house seller leaves and you move in, no reconnection will be made if the whole system is not up to standard.

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1. Is the property freehold? If it isn't, what is the ground rent and how long has the lease to run?
2. Does the owner have to pay any maintenance charges to anyone apart from builders, decorators, etc., to whom he or she has given specific orders?
3. Is the road and main drain taken over by the council or do the frontagers have to club up every now and then to have them repaired?
4. If you are in a business or profession, can you put up your brass plate and can your spouse hang out the washing or are there any restrictions?
5. Has anyone got the right to traipse across any part of your property? Ever?
6. If there is any evidence (extra cookers, sinks, etc.) of more than one family living in the property, what guarantee is there that they will all move out, thus ensuring that you get full vacant possession on completion?
7. Has the property ever been flooded or faced serious risk of flooding?

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Home Information Packs (HIPs) cost up to £1,000. A snapshot of leading estate agents shows that most offer a Home Information Pack (HIP) for around £300 to £350 plus VAT.

Find out how to save £££s making your own Home Information Pack (HIP).

The following documents must be included in a Home Information Pack (HIP):

• Home Information Pack Index
• Energy Performance Certificate
• Sale statement
• Standard searches
• Evidence of title
• Additional information for leasehold and commonhold sales, where appropriate

If you want to include any other documents which would be of interest to a potential buyer, such as a Home Condition Report or an environmental or flood risk search, then you can do so.

Find out how to save £££s making your own Home Information Pack (HIP).

Unfortunately, since 5 April 2000, tax relief on mortgage interest payments has been withdrawn; this applies to both interest paid under MIRAS (mortgage interest relief at source) and otherwise.

Find out how you can pay less tax.

Yes, and the only way you can get the lover out is to force your partner to sell the property.

Find out more about separation and divorce.

If your name is not on the tenancy agreement, then normally, yes.

Find out about tenancy rights and about divorce.

You're legally entitled to lop all foliage or branches overhanging up to boundary level, although you must get the consent of the local council in the case of a tree if there's a preservation order on it or if you're in a conservation area. Return the branches and any fruit on them to the neighbour's garden, being careful not to cause damage to them (otherwise the neighbour may try to claim compensation from you).

Neighbour Boundary Dispute? Get it in writing with Lawpack legal forms.

To complain, apply in writing to the listing officer at the Valuation Office Agency (VOA). This is called 'making a proposal'. Examples of valid reasons are where the property has been reduced in size or physically deteriorated so its value should be lower, or the area has gone downhill; perhaps a factory has been built next door. Alternatively, perhaps the property has been adapted to make it suitable for a person with disabilities - if so, take advice. If the VOA doesn't agree with your proposal, your application automatically becomes an appeal to the Valuation Tribunal after six months.

Find out how you can pay less tax this year.

All chartered accountants are members of the Institute of Chartered Accountants, who will assess your complaint to decide whether conciliation is appropriate or alternatively, carry out an investigation.

Other accountants may be members of the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, or the Chartered Institute of Public Finance Accountants. Book-keepers may belong to the Institute of Chartered Secretaries. All of these bodies will investigate and may take disciplinary action against the accountant if your complaint is upheld.

Discuss the problem with your solicitor first. If it's a problem relating to the service you've received, discuss the problem with either the solicitor directly or, if that's awkward, the partner in their firm responsible for complaints. All solicitor firms must have their own complaints procedures. If the solicitor is a sole practitioner, then they may have an arrangement with another local firm or with the local Law Society to deal with complaints.

Now put your complaint in writing. Any complaint should eventually be recorded in writing. Your solicitor will then have a record of the details. You should keep a copy of your letter.

Next refer the case to the Law Society's Legal Complaint Service. You should contact the Law Society if: 

1. you haven't received a detailed reply to your initial complaint from your solicitor within a reasonable time, say 28 days; 
2. you haven't been able to sort out your complaint with your solicitor; and 
3. your complaint is about a solicitor's conduct. 

It's important that you contact the LCS within six months of the matter you are complaining about. If you leave it any longer, it may decide not to investigate your complaint.

Make your complaint heard: find out how...

Solicitor jargon 'no win, no fee' means that solicitors are paid nothing for their work if they lose, but it also covers agreements whereby solicitors can charge more if they're successful. Put simply, there are two types of 'no win, no fee':

1. Conditional fee agreements: this is the only type of 'No win, no fee' that is allowed for the vast majority of cases (with the exception of family and crime). The solicitor is allowed to charge a sum to reward his risk-taking in the event of a successful result which can be as much as double his fees. If you win, the losing side will (generally speaking) pick up this cost.
2. Contingency arrangements: the solicitor takes as his fee a straight percentage of the award (by contrast with a Conditional fee agreement where the lawyer charges a percentage increase on his or her fees). It's limited to cases which don't involve court proceedings, and is especially popular in employment tribunals and Motor Insurers' Bureau claims.

Find out how you can access Affordable Law.

There are various methods of funding a legal case used by solicitors:

• Charging by the hour: This is the most common method of charging. Hourly rates vary from high street firms where you can expect to pay somewhere between £80 to £120 an hour for advice on private and commercial work, all the way through to £350 an hour for a senior partner in a City firm for extremely expert advice on complex points of commercial law.
• Fixed fees: This form of payment has the obvious appeal of limiting your liability for legal costs and, after the hourly rate, it's the next most common way of charging. The obvious downside is that if your case concludes quickly, then you will end up paying more than you may have on the hourly rate basis.
• No win, no fee: 'No win, no fee' is a deceptively simple expression. On one level - and as the name implies - solicitors are paid nothing for their work if they lose, but it also covers agreements whereby solicitors can charge more if they are successful.
• Legal Aid/the Community Legal Service: To be eligible for Legal Aid, you have to show that you cannot pay for your case (i.e. that you are financially eligible) and that you have a sufficiently strong case that you are likely to win. Even if you're working, own your home and have savings, you may still qualify. However, you may well have to pay a contribution towards the cost of taking your case to court.

If you are an employee, so long as your employer agrees that you can work from home (and whether or not your employer provides you with equipment to carry out such work), you may be entitled to seek a reduction in council tax on the ground that the room you use as an office can no longer be used, for example as a bedroom.

It would be advisable for you not to hold business meetings at your home, because too many of those might constitute a change of use and cause other problems with your local council.

Find out more about working from home.

In some circumstances, a landlord may be liable for defects on the property rented out which cause personal injury to his tenants (and in some cases to others, lawfully at the property). Most arrangements relating to residential property create a lease (whether oral or written) and a relationship of landlord and tenant is created. The landlord's duty in relation to hazards on the property or to the condition of the property depends on whether the defects arose due to his own positive actions, and whether the defects occurred before the lease was created or while you were in situ.

Find more landlord, tenancy agreement and buy-to-let information.

For most tenancies there is a statutory procedure that has to be followed with prescribed forms (which are all available from Lawpack), and if this procedure isn't followed, the tenant may not be liable to pay the proposed increase. The tenant may even be able to recover extra rent paid in response to incorrect procedures.

For more information on the what procedures and forms landlords need to use to raise the rent in England and Wales, read our article 'Raising the Rent'.

If the tenant feels that the rent is too high, they can refer the matter to the Rent Assessment Committee for review.

Find more landlord, tenancy agreement and buy-to-let information.

Over the past year, landlords have been hugely affected by the credit crunch with lenders drastically tightening criteria.

Many landlords have come to the end of a buy-to-let mortgage deal, like a fixed rate, and have found that they don't have the same choice of deals available. Plus lenders have restricted the maximum loan-to-value (LTV) ratios they will lend to.

But if you think that the buy-to-let market is all bad news, then think again. House prices are reducing in some areas, the demand for good quality housing to rent is increasing, and average rents are increasing.  

Plus decreases in the Base Rate have meant that any landlords on a tracker mortgage have seen their repayments fall, as well as borrowers who had been forced to go onto their lender’s Standard Variable Rate. Fixed rates are also slowly coming down.

There are still plenty of great Buy to Let mortgage deals out there, so let us find the right Buy to Let mortgage for your property investment today.