Assured Short hold Tenancy
From 6th April 2007 all landlords in England and Wales renting out property under an AST lease will have to sign up to the new compulsory Tenancy Deposit Scheme. This is where deposits will be held securely until the end of the tenancy. It is designed to safeguard the tenant’s money.
There will be two versions of the scheme:
Custodial Scheme – the tenants gives the landlord a deposit, which the landlord hands straight over to the custodial scheme. At the end of the tenancy, if the landlord and tenant agree how the deposit should be apportioned, either party notifies the scheme, which will pay out the money. The interest made on the tenancy deposit will be used by the administrators to run the scheme and pay for running costs with the remainder given to the tenant/landlord. If there is a disagreement then both parties can use the ADR service (Alternative Dispute Resolution).
Insurance based – in this version the landlord pays a fee to an appointed third party, but hold onto the deposit themselves. If there is a problem at the end of the tenancy the landlord will have to hand over the disputed amount over to the administrator and go through the ADR service.
If landlords do not abide by these new rules they face big penalties.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
