Need-to-know Property Jargon for Landlords

With the pandemic pressing ‘pause’ on so many aspects of our work and lives, we welcome the easing of lockdown measures and seeing industries slowly come back to life. And experts are saying we can now expect to see a rise in demand for property solicitors in Hull as a result of a post-lockdown ‘mini-boom’. 

 

Rightmove’s Director and Housing Market Analyst said: “The unexpected mini-boom continues to drive momentum and the strength of buyer demand has contributed to record prices.” 

 

But if you’re one of the many landlords, or prospective landlords, looking to buy your next property, then you’ll need to wrap your head around the property market and unpick all the industry jargon— and we’re here to help. 

 

Because we know it can be easy to get lost in agent-speak and acronyms and terms of the trade that people use without even realising it. And you need to be sure you’re entering into agreements you fully understand. 

1. Liability – If you are negotiating a surrender, you will want to make sure you have a full release of your liabilities under the lease particularly all past, present and future liabilities. A surrender by operation of law only specifically deals with any future liability and does not specifically exclude past liability (this is also the case in express surrenders by deed if the deed does not record the position correctly). 

 

2. Guarantors – Guarantors are not specifically required to enter into a surrender deed but they may wish to be party to take a release of liability under the lease (See above for past, present and future liabilities). 

 

3. Advanced rent and deposit – Make sure in any form of surrender you have recorded expressly the mechanism for the recovery of any advanced rents (paid in advance and after the date of the surrender) paid under the lease and any remaining deposit. 

 

4. Rent reviews – Consider if there is a rent review due. Potentially unless expressly recorded the right to review remains and so does the tenants liability to pay any shortfall. 

 

5. VAT – Check the VAT position with your accountant on any payments to the landlord (a ‘reverse premium’) or made by the landlord in consideration of them taking the surrender. VAT will need to be added to some surrender payments if the landlord has opted to tax the property but if the payment is compensation for damages it is regarded as outside the scope of VAT.