What Does Let Agreed Mean?
Are you on the lookout for a property to live or establish your business? When looking around for a property, be it a home, an office space, or a store, you have to sign the appropriate documents so that you can officially move in. And when you do not wholly purchase the property, then you are bound to rent it.
During your search, you may see a lot of signs that say “Let Agree” on a property you are interested in. But what does “let agreed” mean? And what does it mean to you or your potential business venture? When sellers place this sign, it means that they - the estate manager or the landlord have already accepted an offer for the property.
When a property is on a “Let Agreed” status, it is no longer available. At this period, the agent is in the process of completing the necessary documents that have to be signed by the tenant and the landlord.
Is “Let” and “Let Agreed” the Same?
No, when a property is on “Let Agreed,” it means that the landlord has already received and agreed on a rental offer, but the documents are not yet signed. After complying and signing all the legal documents, then the deal is successfully and legally agreed upon. It also means that the prospective tenant can now move into the property.
A potential tenant who made an offer to the landlord and the agents of the property needs to agree on some specific conditions and terms for them to a lease. This can range widely depending on the type of property in the market and its history.
These two statements or statuses are posted on the signs outside the property, home, or land that is just waiting for the completion of the lease agreement.
Is There a Difference Between Letting and Renting?
The difference of its use is mainly on who is the landlord and the tenant. The landlord is the one who “lets” the property, while the tenant is the one who “rents” it from the landlord or the company. In essence, these terms mean the same and the difference depends upon which side of the transaction.
Is a Rent and Lease Agreement the Same Thing?
No, it is different. In case of a rental agreement, a landlord will give a tenancy agreement for a specific period and this will renew automatically. The landlord and the tenant can pull out of this agreement easier with a written notice.
Meanwhile, a lease agreement provides the tenant the right to occupy the land, estate, or property for a specific length of time. The agreement can be a minimum of six months to a certain number of years. Under the lease agreement, increasing the price to occupy or lease the property is not allowed. It is unlike rental agreements where there are frequent changes. Thus, it is best to check all the documents whether it is a rental or a lease agreement before you sign. If in doubt or if there is anything that you do not understand, consult with a solicitor to help you out.
Additionally, lease tenancy does not auto-renew once the contract is served. The tenant and the landlord will restart with a new series of documentation if they agree to continue with the lease.
What You Should Know About “Buy to Let”?
When a property is on a “buy to let” status, it specifically means that the property is bought for the purpose of “letting or renting” once the exchange contract is completed and the sale is finalized.
The new property owner shall be on a specialised mortgage designed for this type of property sale agreement - the “buy to let mortgage.” There are various parts in the ownership agreement that need to be explained to a potential tenant when the property becomes available “to let.”
Properties, homes, or estates that are on a “buy to let” status are often those in residential areas. However, they may also include apartments, hotels/motels, retail, trading estates, or student accommodations.
Why Consider A “Buy to Let” Property?
Properties open for rental or lease agreements have several benefits to a future landlord. One major benefit of buying a “buy to let” property is the potential stable and regular income from the rental agreement. As the landlord, it is a great investment as well because of the rising property prices in the UK.
You can find estates, properties, or homes that are listed as “buy to let” properties in areas where there are great developments happening. These locations are set to experience rapid economic growth and investment from private and public funding.
There are landlords with several properties on “let” and it is a lucrative business for many. If you are purchasing a “buy to let” property, seek assistance from experienced solicitors to navigate you through the process.
Are There Risks Involved in “Buy to Let” Properties?
This will depend on the circumstances of how the property is purchased. If it is purchased out on a loan or mortgage, then you should expect higher repayments and insurance for it.
Thus, before you go ahead with your purchase, consider the circumstance of the sale of the property. In case you do not meet the monthly repayments, it can lead to serious economic and legal sanctions. It may affect your business and the other properties that you own.
Fortunately, the UK government has implemented steps to prevent landlords from using loopholes in the legislation and took advantage of the tenants. In 2015, these loopholes were mended and a third-party deposit is made compulsory to protect tenants from unlawful schemes. Likewise, landlords are then mandated to register their properties to “let” in multiple locations.
When considering investing in real estate, you have to understand the various terms used by agents. “Let agreed” status of a property means that there is already an offer accepted and the documentation is in the process of completion. In case you are interested in renting, you will accomplish either a lease or rental agreement as well. Make sure that you know the details of your agreement as landlords can raise rental prices if you are naive about these things.