Northwood Lettings: Platinum Scheme

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    Northwood Lettings: Platinum Scheme

    Anyone had dealings with Northwood's regarding their platinum scheme?

    Under this scheme, Northwood claim:
    • To guarantee monthly rent to LL.
    • Offer about 85% market rent (they said it was based on 'their' assessment, so could be lower...).
    • No management fees, but LL is responsible for maintenance.
    • 12 months (binding) contract between LL & Northwood, i.e. Northwood is LL's tenant; & Northwood sub-lets to its tenants (which it finds - LL has no say on tenant selection).
    • 95% tenants are professionals.
    • Periodic (quarterly) inspections (with reports to LL).

    Cannot see any real benefits unless LL is really struggling to let or letting remotely. Also these threads are not encouraging: 1 & 2

    Any feedback welcome...
    The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .

    #2
    1. Would any lender consent to such an arrangement whereby your T (Northwood) are not in occupation of the premises.

    2. Lenders won;t like the above because you have no direct contractual relationship with the occupier (although a head LL can enforce restrictive covenants against a sub-T under the rule in Tulk v Moxhay).

    3. Is the agent ARLA regsitered, if not, avoid.

    4. Advise you check the terms of the tenancy agreement with the agent tenant very carefully, together with any accompanying agency agreement (if applicable).

    Comment


      #3
      Thanks Dominic, some good points made.

      Spoke to one of the chaps at the letting agents (LA):
      He was saying if market rent was £750, the LA subtract 10% (£75) & £11 (VAT) = £664. Then, he went on to claim that annual rent (they offered) was: £6500!

      Hang on...
      £664 x 12 months = £7968 (not £6500 = £650 x 10 months)!!
      £1468 discrepancy for their fees presumably!

      Maybe LA lives in a parallel universe where 2 months rent mysteriously disappear...
      ...and even more miraculously reappears in LA's bank account.


      Oh yes, there's also a £229 set up fee...
      The information in my posts is provided 'as is'. This is not intended to be legal advice. Legal or other professional advice should be sought before acting or relying on this information or any part of it. I will not be held responsible for loss or damage arising from errors in the information or the way in which a person uses the information on this . For more information on your query use the '' link at the top of this page. Agreements, Forms & Notices can be found .

      Comment


        #4
        My parents let out a flat through this scheme, and they're happy with it. I think it just depends on your personal circumstances - they're happy to have a bit less income but have it coming in reliably, rather than trying to maximise income. If you're confident of the market and think you can avoid void periods, you may not need the safety net of this sort of scheme.

        Comment


          #5
          The flaw in these schemes is that the agent effectively becomes the tenant of the owner so it will not be an AST, and then sub-lets on an AST.

          The owner landlord could then find they are tied in under the L & T Act 1954 with the agent tenant and can't repossess as the agent might well have an in-built right to renew their tenancy. It should be exempted out of the L & T Act 1954 to be on the safe side.
          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

          Comment


            #6
            Originally posted by tom999 View Post
            95% tenants are professionals.
            Whatever you take this to mean, it sounds like a seriously bad idea!
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

            Comment

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