Court repossession fees may soar for the second time in two years
When you’re a landlord, there will, unfortunately, be times when you need to seek possession of your property. This could be a necessity if, for example, your tenants are in arrears; or if your property’s been damaged in some way (these are the top two reasons a landlord’s forced to go down this route).
If you do opt for this (we don’t advise this at all, this is why our service exists – to spare you the hassle); you need to be aware that the costs of this process may go up yet again.
Following the announcement in April 2014, when possession claim court fees went up from £170 to £280 (an increase of 60%), there are now plans afoot to increase the fee by £75, which means the price will soar to £355.
There were also other increases on a range of other fees last year, including applications for possession, plus fees for using Possession Claim Online (PCOL), which jumped up by 150% to £250. The warrant of possession (where a bailiff has been instructed) was the only fee which stayed the same at £110.
The government has launched a consultation on this issue, so if you wish to have your say, have a look here.
What are the implications of this?
While this increase is inevitably going to affect the landlord, tenants may also lose out. If an agreement says that the tenant would be liable for legal costs incurred as a result of the breach, the landlord may be able to deduct the costs. The potential cost to the landlord – and therefore the tenant – of using the courts could soar to more than £400. Landlords may wish to have a look at their contract terms in their tenancy agreements, as if your tenant disputes deductions for losses but you don’t have the necessary conditions in your agreement, you may find yourself paying more.
How we can help
However, none of the above will be necessary if you use our guaranteed rent service. Throughout the years, we’ve helped hundreds of landlords and investors avoid such dramatic scenarios and hassles, by taking care of their properties in every way – from managing all the daily tasks, along with viewings, maintenance and legal issues.
Luckily, when you lease a property with us, there are no rent arrears for you to concern yourself with. We guarantee to pay your rent each month on an agreed date; and, with more than 35 years of dedicated experience in this sector, we’re confident we can deal effectively with any problem that arises.