New Joint Landlord

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    New Joint Landlord

    I have owned (as a sole owner) several rental properties for many years. All are tenanted with myself as Landlord. Some are currently on their intial fixed term, others have moved onto periodic tenancies.

    The properties have recently been transferred into joint names with my husband 50/50. This is purely because he has now retired and going forward we will jointly take the rental income and we will both complete SA Tax forms on a 50/50 basis.

    I know the tenants all have to be informed within two months of this change in the property ownership.

    The questions I can't find answers to are:

    1. Is it sufficient to simply write to each tenant notifying them that the property they occupy is now owned jointly - giving all my husband's contact details?

    2. Must I, or should I, state that my husband will now also be their joint landlord?

    3. If so, how would this play out in the future when only my name is on the AST?

    4. Should any letters, documents, etc to the tenants, now be sent from both myself and my husband?

    Any advice or comment gratefully received. Thank you.

    #2
    Originally posted by Graddieaddie View Post
    The questions I can't find answers to are:

    1. Is it sufficient to simply write to each tenant notifying them that the property they occupy is now owned jointly - giving all my husband's contact details?
    Yes and that your husband is now their (joint landlord). And it's not "contact details" it's where he normally resides.

    2. Must I, or should I, state that my husband will now also be their joint landlord?
    See above

    3. If so, how would this play out in the future when only my name is on the AST?
    This notice changes that.

    4. Should any letters, documents, etc to the tenants, now be sent from both myself and my husband?
    Most notices can be sent by one of two (or several) joint landlords on behalf of all of them.[/QUOTE]

    Essentially where you are joint landlords, there is only one landlord, who is both of you.
    So, one can act for the other and for both.

    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      That's very helpful. Thank you very much.

      Comment


        #4
        I thought you only had to notify the tenant if the LL changes? And the LL can be just one joint owner or not even an owner at all? So is it necessary to do anything?

        Comment


          #5
          I dont think that the change in ownership necessitates a change of landlord. As far as I am aware, you can continue to be the sole landlord for the jointly owned property, although the income would now be split. In this case, there would be nothing to notify tenants about.

          Comment


            #6
            S48 and s3 notice(s).

            Are properties all in England and do you both live there? If so just one address, your home address will do.
            I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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              #7
              Originally posted by royw View Post
              I thought you only had to notify the tenant if the LL changes? And the LL can be just one joint owner or not even an owner at all? So is it necessary to do anything?
              There's been a change of ownership, which requires notice to the tenant under s3 of the Landlord and Tenant Act 1985.
              Even if the landlord doesn't change, that's necessary because the landlord's interest in the property has changed.

              And because the effect of the change needs to be that the income is split between the two new owners, there needs to be a change of landlord, otherwise all of the rent will continue to be received by the original landlord.
              And the new joint landlord needs to give the tenants their address as per s48 of the Landlord and Tenant Act 1987.

              Technically if the section 48 notice isn't received, the tenant doesn't have to pay over any rent due until it does.

              In real life, I'd say that the possibility of something happening to a landlord who doesn't comply with the requirements is close to zero, but the regulations are there.


              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                Surely the existing landlord just needs to ensure the rental income received is allocated appropriately for tax purposes, but that wouldn't in itself require a change of landlord. I'm also not convinced about the requirement for the s3 notice as although the landlords interest has changed, there need be no new landlord.

                Comment


                  #9
                  Originally posted by DPT57 View Post
                  Surely the existing landlord just needs to ensure the rental income received is allocated appropriately for tax purposes, but that wouldn't in itself require a change of landlord.I'm also not convinced about the requirement for the s3 notice as although the landlords interest has changed, there need be no new landlord.
                  The purpose of the change is for the overall amount of tax to be paid to be reduced.
                  That's best done transparently and simply.


                  There doesn't seem to be any downside to the spouse being joint landlord, other than the need to send a notice.

                  Not being a joint landlord, but being the owner of the property and receiving income is less advantageous for the spouse.
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment

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