Anyone leased a property to a council under a five-year lease?

Anyone leased a property to a council under a five-year lease?

0:01 AM, 25th July 2023, About A year ago 14

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Hello, has anyone leased a property to a council under a five-year lease and had any problems getting it back? Is it considered a business tenancy and therefore it’s advisable to opt out of the 1954 Landlord and Tenant Act?

I am also not concerned about a mortgage and lenders not approving anything other than an AST. So please no comments on these areas.

I can imagine the sort of people the council may house in properties.

Thanks,

Stuart


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RCJ

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9:48 AM, 25th July 2023, About A year ago

It is just a lease, but it is unlikely you will get the property back in the shape you gave it to them. Expect about £30K in major works when they hand it back to you

Frederick Welsh

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9:50 AM, 25th July 2023, About A year ago

Hi Stuart
Yes I had let a property to my local council on a 5 year agreement, never again

Nikki Palmer

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10:29 AM, 25th July 2023, About A year ago

Surely this has been debated in the last couple of weeks?

RoseD

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10:39 AM, 25th July 2023, About A year ago

I guess Stuart you take a risk whoever you let to. Benefit of this it's a 5 year lease with guaranteed income. Can you include clause that property is returned in same condition? That'd be my only reservation as little point if you have to spend £30k on return as one thread has suggested. You must have some reservations hence your question on this site.

Susan Bradley

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11:37 AM, 25th July 2023, About A year ago

Reluctant Landlord

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11:42 AM, 25th July 2023, About A year ago

by the sound of it you are expecting it to be trashed by the end so you are not naive as this will more than likely be the reality.

Sounds like you want a hands off 5 year fixed deal. All good in practice but the issue of it being trashed between tenancies how the Council will monitor this is a concern. Will they be responsible for the actions of their tenant and put right any damage so it can be re let? They will house their nightmare tenants just to get them off their list and out of their hair.

e.g if the tenant complains to the council that the property has damp etc the council will call you. They will inevitably not want to deal with this themselves and say its your issue as a LL to sort out. You will be the fall guy. If its a business tenancy yes you will want to opt out of the LTA and I would suggest getting a solicitor used to dealing with these contracts to take a look and advise.

You ask about 'getting it back'. The tenants themselves will be on some sort of licence with the council so you need to make sure that the obligation is on them to remove so the property is completely vacant at the end of the term, not just they have served notice on the tenant to vacate. That means they have to give the tenant notice. How long is this? You need to know what happens if they do not move out.

Will it just be for families or used as an HMO by the council? Licence issues!
General maintenance? Gas checks etc etc? Who is responsible?

You WILL need to talk to your insurance too about this. If the poop does hit the fan are you covered legally for costs to take the Council to court for breach of contract if for example the tenant does not leave? Who still has to get the tenant out?

H MD

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11:46 AM, 25th July 2023, About A year ago

DO NOT DO IT.

Alarm bells should be going off in your head as you read the comments here. Susan Bradley's is a real life scenario.

If you are still considering it, go ahead.

Jules Azeez

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11:52 AM, 25th July 2023, About A year ago

I'm coming to the end of a five year lease and have been told the council are not handing back properties.....steer clear. Trip to a solicitor for me!!!!

Nick Van Hoogstraten

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22:13 PM, 11th August 2023, About A year ago

Reply to the comment left by Jules Azeez at 25/07/2023 - 11:52
Jules, what have the solicitors said?

Nick Van Hoogstraten

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22:13 PM, 11th August 2023, About A year ago

Reply to the comment left by Frederick Welsh at 25/07/2023 - 09:50
Did you get it back though?

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