Jargon Buster
Guarantor – Lettings
A lettings guarantor is someone nominated by a tenant to cover their financial obligations should they be unable to do so.
Letting agents will often request a guarantor if a tenancy applicant’s affordability is stretched.
Handover
Handover refers to the point where a landlord allows a tenant occupation of their property.
Head Landlord
The Head Landlord is a person or company that owns the freehold of a property let out to a tenant.
Holding Deposit
A holding deposit may be put down by a potential tenant to secure a rental property while referencing is carried out. Holding deposits are capped at no more than one week of rent.
Housing Act Tenancy
A Housing Act Tenancy refers to tenancies that fall under the Housing Act 1988 and Housing Act 1996.
Inland Revenue FICO Number
Letting agents are given an Inland Revenue FICO number, which is required by overseas landlords completing an NRL1 form for overseas tax purposes.
Instruction
When a seller decides on an estate agent to act for them, this is known as an ‘instruction’. The seller will then sign a terms of business agreement and agree to the agent’s terms.
Inventory
A property inventory is a detailed list of the condition of a property just before a tenancy begins.
Inventories should also list all fixtures and free-standing items included at the start of the tenancy.
Joint Tenants and Tenants in Common
If two or more people own a property equally, they’re known as Joint Tenants.
When one tenant passes away, their share in the property automatically transfers to the other tenant(s).
Tenants in common, however, can own different shares of a property and their share passes to their estate on death, rather than the other tenant(s).
Jointly and Severally
For multiple tenants who are living in one property, they are jointly responsible for paying rent and meeting their obligations, but are also individually responsible, too.
Landlord’s Gas Safety
Landlords must make sure all gas appliances, fittings, and flues are safe and must do this by obtaining an annual gas safety certificate.
Certificates must be issued by a GAS SAFE engineer licensed to complete work on gas appliances.
Law of Contract
Law of Contract Tenancy/ Tenancies outside the scope of the Housing Acts of 1988 and 1996 and subject to the standard provisions of contracts.