Leasing & Letting

Question 1

What legislation must be followed when letting residential properties?

Answer 1

Housing Act 1988
Gas Safety Regulations 1998
Electrical Safety Standards in the Private Rented Sector Regulations 2020
Homes (Fitness for Human Habitations) Act 2018

Question 2

What are the different methods of letting property

Answer 2

Private Treaty
Informal Tender

Question 3

Talk me through the process of letting residential property

Answer 3

After signing of ToE:
- Check compliance - EPC, EICR, Smoke Alarms..
- Draft details and market
- Conduct viewings
- Disclose all applicants to client
- once the client has chosen an applicant conduct due diligence. AML, Affordability , Right to Rent.
- Draft AST and Inventory.
- Take deposit and register with TDS
- On signing of the above issue all compliance certificated, how to rent guide, TDS certificate.

Question 4

What must you do before you let a residential property

Answer 4

Check compliance:
Valid epc of E or above
Gas, electricity, boiler, smoke alarms
Fit for Human Habitation?

Question 5

What legislation covers a grazing licence

Answer 5

AHA 86 S.2, 3a

Question 6

Talk me through the TDS scheme

Question 7

How long can you draft a commercial lease for and why?

Answer 7

3 years

Anything over 3 years must be in the form of a deed and prepared by a solicitor (Law of Property Act 1925)

Leases over 7 years must also be registered with the land registry.

Question 8

How long can you draft a FBT for and why?

Answer 8

Member of the CAAV or RICS can draft FBTs over 3 years.

The ATA 1995 allows members to prepare deeds to establish FBTs as well as deeds for assignment and surrender.

FBTs over 21 years bust be registered with the land registry which can only be done by a solicitor

Question 9

What would you include in the letting details for land?

Answer 9

Description of the land
Directions
Method of letting
Services
Tenure
Rights of way, easements, wayleaves
Fixtures and fittings
Viewing arrangements
Guide price - if private treaty
Plan and photos

Question 10

With regard to commercial lettings, what would you include in the HOTs

Answer 10

Name and address of LL and T
Description of the property
Proposed start date
Length of the term
Rent and rent reviews
Breaks
Repairing obligations
Insurance
Restrictions
Parking
Plan

Question 11

What might affect the level of rent with lettings?

Answer 11

Repairing obligations
Restrictions on use
Access
Length of the lease
Security of Tenure

Question 12

What is a break clause

Answer 12

A break clause provides one or both parties the option to terminate the lease on the agreed break date(s) by serving an agreed amount of notice.

Question 13

What is the rent review basis for commercial tenancies under the LL and T act 54

Answer 13

Freedom of contract between the parties. usually either Market Rent or RPI linked

Question 14

What fee would you charge for letting residential properties for your clients

Answer 14

As detailed in our Management Agreement, we are able to charge 7.5% of the annual rent for re-letting a residential property.

Question 15

What if a residential property is not EPC compliant?

Answer 15

I would instruct an EPC assessor to produce a draft report outlining where energy efficiency measures can be conducted.
I would obtain quotes of the most cost effective methods and run through them with the client.
If the total cost of the works exceeds £3,500 an exemption may be applied for

Question 16

How would you contract out of the security of tenure provisions of the LL & T Act 1954?

Answer 16

Sections 24 - 28 of the act

Firstly, agree with the tenant that the lease will be contracted out.

Before 14 days of the commencement of the lease i would have the tenant sign a notice and declaration confirming the above.

This will be recorded in the lease and a copy of the notice appended to the lease.

Question 17

What if you don’t have 14 days?

Answer 17

the tenant must sign a declaration before an independent solicitor also known as a statutory declaration.