Benefit Cuts Threaten Buy-To-Let Landlord’s Income

Benefit Cuts Threaten Buy-To-Let Landlord’s Income.

Buy-to-let landlords face growing financial pressure as the government’s benefit cuts threaten rental income in some of Britain’s priciest areas.Swaths of outer London and the south coast will be hit by the £23,000-a-year cap on benefit payments which the government is committed to introducing in this session of parliament, according to data modelling by the FT.These areas are relatively affordable for the capital’s commuters but a high proportion of households receive housing benefit because of their low incomes. One in four English private sector tenants now claims housing benefit, a rise of nearly 90 per cent in the past six years.The government plans to roll this and other benefits into a single payment, called universal credit, which will be capped for out-of-work households to ensure that people are always better off in a job than on welfare. But this will make it harder for some tenants to afford their rent.Paul Shamplina, founder of Landlord Action which helps landlords deal with rent arrears and other tenancy problems, said he had seen “a lot of landlords in London and the southeast exiting the market” in the past 18 months, as the benefit cuts — including a cap on total benefits already imposed in the last government — make it harder to find tenants who can afford to pay their rents. Landlords are also facing rising problems with tenants subletting rooms in their properties to benefit claimants who can no longer afford a home of their own, Mr Shamplina said.“Especially in London because rents are so high, tenants are being evicted and [moving to] places like Birmingham and Slough,” he said. “It is only going to get tougher for landlords.”

Precise Treatment Reduces Pain

Detail needs experts. Expert time is worth it when it saves you a costly mistake. Main objective: Get the property back. Best action: Very precise treatment.

Serving a notice is actually the most important part of the possession process.

It isn’t complicated but one tiny error can cause dreadful problems.

That’s why we say, don’t DIY and don’t use internet amateurs. It’s not worth it.

1. Compliance Errors
If the tenant doesn’t leave at Step1, the notice had better be valid. Because then it has to go to court. Any little error can get a case thrown out. And you have to start all over again.

2. Attempting Short-Cuts.
In an effort to be quick, some internet services aimed at landlords are using short-cuts around the process. But if the tenant doesn’t leave (50%) these practices can backfire at court and the case thrown out.

3. Trying to Save Pennies.
Internet services have mushroomed and landlords can expect to get what they pay for. To get the process done PROPERLY it takes a certain amount of time for an expert to look over a file and be accurate. Our fees cover that expert time.

Chasing courts for dates, arranging advocates and preparing court papers is time consuming. Especially if you’ve never done it before.

Some landlord and agents have served notices themselves. They believed they were saving a few pounds but it often ended up costing them more.

If you lose a claim, the court can order you to pay the tenant’s defence cost, which can run to hundreds or thousands of pounds.

Our in-house Solicitors are there to get your property back as fast as they can. And we protect landlords and agents from themselves.

As experts, we know that in the rush to get things done, errors can happen. And those errors can can come back later to mess up your case – and the whole process has to start again.

You can speed things up – give us accurate information quickly. Help us to help you.

There are services on the web who will prepare papers BUT they get you to pay the court-fee separately and get you to sign the court papers – so in fact they don’t represent you!

If your notice (at Step1) wasn’t drafted or served correctly you risk wasting your court fees and losing a whole lot of time because of a small error.

We won’t let your case anywhere near a court until we have checked every little detail. To make sure you don’t waste time or money, at Step-2 we first only charge part of the fee.

If your notice is fine, then you just pay the balance of the fee and we issue the claim. If there is a problem with your notice or paperwork, we will advise you what to do next.

Courts take the view that possession proceedings can make someone homeless. So they are very careful. If there’s any error in the notice, they throw the case out. It’s the process. Get it right or lose.

If the notice is invalid, you have to start all over again. The weeks or months you’ve waited are wasted. If there were rent arrears, there are now more.

If there weren’t rent arrears, they might now start. More fees. More lost rent. And still no possession. Tenants can be alerted to making a counter-claim.

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