Buy-to-let policy
- Properties must be let on a single tenancy agreement with a maximum of 4 tenants. They must not be an HMO. An HMO is a property with 3 or more tenants forming more than 1 household who share a toilet, bathroom or kitchen. A household is either a single person or a family (including unmarried partners)
- There’s no maximum tenancy length
- Tenants need to be individuals (not a company, local authority or housing association), and it’s acceptable for tenants to be in receipt of benefits
- In England the contract should be an Assured Shorthold Tenancy agreement. ASTs aren’t available where the rent is over £100,000 a year and the tenancy agreement would need to be confirmed acceptable by the legal rep
- In Scotland the contract should be a Short Assured Tenancy under the Housing (Scotland) Act 1988 or a Private Residential Tenancy
- In Wales the contract should be a Standard Contract
- Properties which aren’t let on one of the above contract types, including short term holiday style lets, are not accepted
- We don’t allow premium leases (where a lump sum is paid for the grant of a lease rather than as rent due), or sale and leaseback (where the property has been sold by someone who becomes its tenant)