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Property Inventories – How To Avoid A Legal Dispute

Property inventories are written documents that give a comprehensive report on the condition and contents of a property. They can be used in a court of law as evidence if a dispute arises between a landlord and tenant. It is imperative therefore that a signed inventory is properly documented at the beginning of the tenancy in order to help resolve any future disputes if they arise. The following are the top three tips that you should do if you want to avoid a tenant landlord dispute in cases of property damage.

1. Do write the inventory – The next most important document between the landlord and tenant after the rental agreement is the written inventory. Some landlords fail to have a written inventory and this is never a good idea. Landlords should always a have a written record of the condition and contents of their property at the time the tenant moves in. Without a written inventory the potential for conflict is greater as it will rely on people’s memories what the property condition was at the start of the tenancy.

2. Take detailed records of everything that you consider important – An inventory should contain a detailed account of all the items that are in a property such as the furniture and electrical items. In addition to removable items the inventory should also contain detailed records of fixed items. This will include things such as the condition of the flooring, walls, ceilings, windows and other items that are fixed into or part of the property structure.

It is a good idea to take photographs since images together with written text will give a stronger analysis of the state of the property. The inventory should be as comprehensive as possible to remove any ambiguities. Greater detail and attention in the report should be given to anything in the property that you consider important. This may be anything that is expensive or valuable or things that do not have much monetary value that you consider important.

3. Use a professional property inventory services provider – Landlords can compile property inventories themselves, however, compiling an inventory can be a laborious task. It involves a keen eye for detail and the process of producing a comprehensive report takes time. Landlords who do not wish to use their time in this way can outsource this job to a specialist property inventory services provider. They will have inventory clerks who specialises in this role and produce property inventories to a professional standard. Another advantage of using a property inventory services provider is that they are independent and impartial and can therefore mediate and resolve matters between the tenant and landlord regarding property issues.

The Leasehold System Explained

One of the primary characteristics of a leasehold property is that as the leaseholder you should be able to remain in the property for a designated number of years – typically 99 or 125 when first granted. However, the freeholder retains ownership and responsibility for the common parts of the building. The property will then revert back into the landlord’s ownership when the lease finishes.

If you are buying an existing lease, look for one with over 80 years left to expire. Other than this, it is a good idea to extend your lease before that number decreases. This is because a short lease means your property will be worth less. Further options when your lease comes to an end are; purchasing the freehold from the owner or continue renting as a tenant.

Think about what the terms of the agreement will be before you sign? Make sure you keep a copy of your lease agreement – or leasehold extension agreement – because it details both the duties owed and rights owned of the landlord and leaseholder.

Those terms will normally state who is responsible for looking after different parts of the building and insures it. This may limit how the property can be used – for example, business activities may be forbidden. It may also state what transactions require the landlord’s permission, such as selling the property.

In this document you will also find that you are required to pay ground rent and a regular service charge. The ground rent will cover your right to occupy the space your flat sits on and the service charges will be used for the whole maintenance of the common areas within the building. When you come to extend a lease, the same rules apply.

But what do you do if you are not satisfied with the term? Then you can vary them by agreement. What if you feel the need to challenge any of the clauses or if they aren’t met by the freeholder? You also have the right to apply to a Leasehold Valuation Tribunal (LVT) on specific grounds to vary your lease or to report the negligence.

Once you understand how the leasehold system works, it is advisable to get the advice of a solicitor with specialist knowledge of leasehold laws and how to extend a lease. With confidence, you can purchase the flat of your dreams.