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  • Buy-to-Let

    LHA direct payments?

    do the LHA pay direct to the LL  now automatically or do we still have to show good reason ie tenant is vulnerable etc , the reason im asking is im taking  one on in one of my properties but i would like to be paid direct , is there a good way of ensuring this? thanks for your help, , tam
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    Hi Tam
    Its not guaranteed unfortunatley, we are still putting as much vulnerability evidence in as always, just to make sure. I've read the DWP circular (ill put it on here tomorrow) and as usual its advisory rather than mandatory. We have spoken to most of our councils who will pay direct if the LL accepts the lower rent, however I'm not going to be taking any chances
    JP
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    John Paul MARLA
    Managing Director
    Sunday Times Letting Agent of the Year 2014
    Investors In People GOLD accreditation
    http://www.thecastledenegroup.com
    hi john paul thanks for that, i was on facebook the other day and , i think it was bobby gill that posted it , somewhere along the lines of , the LHAs were gauranteeing  direct payments if we accept lower rents , but only for 2 years , have you heard about this, thanks, tam
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    https://networkedblogs.com/ghVgD i think ive copied and pasted the link here to bobby gill post but not sure if ive done it right lol
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    Hi All

    https://dwp.gov.uk/docs/a4-2011.pdf

    Link to the DWP circular about the new direct payment. As you can see its not guaranteed by a long shot so i would suggest carrying on with as much vulnerable information as possible.

     

    Also speak to your council see what they want in order to pay you direct. We have spoken to all our councils and some want different things, in order to secure direct payment

     

    JP

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    John Paul MARLA
    Managing Director
    Sunday Times Letting Agent of the Year 2014
    Investors In People GOLD accreditation
    http://www.thecastledenegroup.com

    Unfortunately, with LHA changes, there never seems to be any definitive guidance.

     

    As councils all make independent decisions and policies, you get mixed results.

     

    We have looked at the regs, and where we are limiting our rent to LHA amount, we are seeking direct payment on the basis of;

     

    1. Rent being lowered to LHA amount for area to make it affordable in accordance with DWP guidelines.

    2. Direct payment is required by the landlord for the tenant to secure and retain the tenancy

    3. Direct payment is a condition precedent of the tenancy being granted.

    4. If direct payment is not granted, this is breach of the tenancy, upon which the landlord can seek possession on Ground 12 for Section 8 Housing Act

    5. If direct payment is not granted, we put the council on notice that we wish to appeal immediately.

     

    We hope we've covered all legal bases, but with LHA there will be some teething issues. I'll keep you posted.

     

    @NPGLettings

    https://www.NationalPropertyGroup.co.uk

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    My first application for direct payment with no vulnerability issues goes in tomorrow. I`ve added a clause on the AST to reflect this requirement as a prerequisite to the tenancy being granted. I`ve negotiated seperately with the tenant regarding the payment of the top up amount to make it back up to the old amount which they are willing to pay

    I will let you know how it goes  

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    Jonathan Clarke. http://www.buytoletmk.com