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Rental guarantee

Firstly, congratulations on your new purchase!

Under this solution, we take away all the headaches normally associated with letting by guaranteeing an investor a 6% gross yield for a 24 month period (less our charges and costs) whether we have found a tenant or not.

Terms and Conditions

Upon legally completing your purchase and in consideration of your instructing and continuing to instruct us for a term of not less than 24 months from the date of legal completion to let and manage your Property:

1. We will pay you a rent equivalent to *6% of the purchase price* for a period of 24 months from the date of completion (namely the “Rental Guarantee Period”), paid monthly in arrears, less our charges and costs;

2. Our Charges and Costs which will be deducted from the gross rent are:

a. Our reduced Letting & Management fees of 12% of the guaranteed rent plus VAT, charged three monthly in advance

b. £350 including VAT for the drafting of the tenancy agreement

c. £60 including VAT for registering the Deposit

d. The cost of an inventory (make and check) at the start of each tenancy

e. The cost of an inventory (check) at the end of each tenancy

f. A rental guarantee policy fee of £300 per year including VAT

g. Any withholding tax (and a fee of £75 including VAT per rent payment payable by any overseas customer not registered for the HMRC non-resident landlord scheme).

3. You instruct and allow us to Let and Manage your property for not less than 24 months and will not terminate our service for at least 24 months or until the property next becomes vacant – which ever shall be the later. Should you attempt to terminate our service within 24 months or otherwise interfere with our letting and management of the property then we shall in our sole discretion be entitled to withdraw the said Rental Guarantee;

4. At the end of the Rental Guarantee Period, this guarantee shall end and you will then receive rent (net of our Charges and Costs) at the rate (if any) at which the property is then let;

5. We will let the property in our sole discretion to tenants of our selection and you authorise us to negotiate and sign tenancy agreements on your behalf and without any further reference to you;

6. In the event that a tenant should default in the payment of rent or in the performance of their other obligations then we are authorised (but not obliged) to bring Court Proceedings in your name but at our expense, to seek possession of the property or to otherwise enforce the terms of any Tenancy Agreement. Should such Proceedings remain in place upon the expiry of the Rental Guarantee Period then you will at your expense going forward assume conduct of those Proceedings;

7. You recognise and accept that it is very likely that the term of any letting may not tally exactly with the Rental Guarantee Period and that we will enter into Tenancy Agreements on your behalf that may end after the end of the Rental Guarantee Period and you agree that we are entitled to do so.

8. To the extent that the terms of this Rent Guarantee agreement shall conflict with our Terms and Conditions of Business then during the Rental Guarantee Period the terms of this Rent Guarantee agreement shall prevail but thereafter those terms shall be read as if this agreement has been deleted.

Once you have confirmation from Barratt London that your property will qualify for our Rental Guarantee solution, then ask your Barratt London sales consultant to put you in contact with us so we can sign up the formal Rental Guarantee Agreement between us detailing all the terms so it’s totally clear what you will be receiving.