Legal implications
The legal implications of BTL Ownership are governed by the Housing Act 1988 but important changes were made by the Housing Act 1996 which came into effect on 28 February 1997. The act introduced assured shorthold tenancies which allowed landlords to charge market rates, have guaranteed possession of the property once the tenancy has ended and provided a quicker and simpler process to evict tenants who fail to pay their rent or cause a nuisance to the landlord or the local community. The tenancy agreement is a legally binding contract between a landlord and tenant that sets out both the legal and contractual responsibilities of the two parties. It should be written in plain language and not be misleading in any way. The tenancy agreement must contain all terms for the use of the property, both relating to the tenant and the landlord. Details of the deposit and the circumstances of when it will not be returned must also be stated. It is advisable that all terms are checked by a third party before signing, because when both parties sign the document they are both bound by the terms of the agreement.
In general Buy to Let mortgages are not regulated by the Financial Services Authority.
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