Private Sector Leasing
Colne Housing Society offer a private sector leasing scheme working in partnership with local authorities including: Braintree District Council, Colchester Borough Council , Maldon District, Suffolk Coastal Council & Tendring District Council.
What is a Private Sector Leasing Scheme?
The Scheme is essentially a three-way partnership between the private sector, Colne Housing Society and the local authority. The owners of empty properties provide the homes, the housing association provides the housing management and day-to-day repairs and maintenance and the local authority provides the tenants.
What is the benefit to the owner of the property?
The leases run for a period from between one and six years. During that time the owner will receive the rent paid monthly. The rent paid to the owner will be reviewed on the anniversary date the lease was taken out and adjusted upwards by reference to any percentage change in the Retail Prices Index (RPI). The owner will be paid regardless of whether the property is occupied or not.
The owner will not be responsible for any housing management for the duration of the lease and will not be required to have any dealings with the occupiers of the property.
NB: the owner will require the permission of his or her mortgage lender in order to participate in the Scheme.
How much Rent can I expect to Receive?
The rent that you can expect to receive will depend on factors such as the geographical area, size, type and condition of the property. Figures offered to landlords will be regularly reviewed as market conditions change, and will be based on the Local Reference Rent for the property. (This will most likely change to Local Housing Allowance once it is introduced)
Will there be any Fees to pay for the Service?
There will be no agent’s fees to pay for the service.
Are there any costs for the owner of the property?
The owner is not charged any fees during the lease period. However there may be some additional costs involved if the property does not meet the local authority’s minimum standards and requires work to be carried out prior to leasing. In addition, there are some repair obligations that remain with the owner (see the Summary of Repairing Liabilities within the lease for more details). Also the cost of annual gas and electricity safety test checks may be recharged to the owner depending on the type of lease taken out.
For What Period Can I Take Out A Lease?
You can lease your property out under this Scheme for between three and six years with an opportunity to renew the lease for a further six months or to take out another lease when the existing lease expires for a further period of between one and six years.
The Lease
We offer a repairing lease the landlord is still responsible for certain repairs under the Landlord and Tenant Act 1985. The repairing obligations will be shared between the Landlord and the Tenant with the Repairing Lease. If the Landlord fails to do the repairs that are their responsibility the tenant (Colne) can do them and re-charge the Landlord usually by deducting them from the on-going rent.
In What Condition Do you Expect the Property To Be For it to be Taken onto the Scheme?
The property should meet the required standard so that it is safe, in good repair and weatherproof and has basic amenities. All properties should comply with these requirements.
Is there any Financial Help Available to Improve my Property?
Financial help is available in the form of loans (and grants) to improve property and bring it back into use. Details are available from the local authority in whose area the property is situated.
Should I provide Furniture for the Property?
Properties should be unfurnished. Any chattels including carpets, floor coverings, curtains, refrigerators, cookers, washing machines, boilers and kitchen units on the Premises at the commencement of the Term remain the Landlord’s responsibility through the term of the lease.
What Should I Do If I Want to Let Out my Property?
Initially you should contact Richard Jones, New Business & Commercial Manager at Colne Housing Society on 01206 244700 or E-Mail Richard Jones and discuss with him the condition and type of property you have together with the area in which the property is situated. Arrangements will then be made to appraise the properties suitability for the scheme. You can also see more information by visiting the Safe Haven Project.
Information pack
An Information Pack has been produced that is available to hand out to private landlords and others who may be interested in leasing out their property to a housing association or local authority. It includes all that a landlord will require to make an application and includes a step by step guide to show the process for leasing out their property together with other useful information.
The following documents are included in the Information Pack:
• A letter introducing the Scheme
• An application form
• Details of rents that an owner could expect to get for leasing out his property
• Property standards
• Lender Permission letter
• Lender Permission Form
• Insurance Verification Form
• Agreement to Lease
• Step by step guide to leasing out your property
• Letting Guide
• Sample Lease Agreements
• Letter explaining the gas and electricity check charges
To receive an information pack please contact Colne Housing Society on 01206 244700 or e-mail info@colnehousing.co.uk
