I have been advised that it is in my best interests to incorporate my property business from a tax point of view. Will I have to reissue all my tenancy agreements once I have done this?
It’s a little more complicated than just reissuing documents unfortunately.
If the existing tenancy is still in place, the properties will be sold by you (the individual) to your new limited company with a tenant in situ, and sold’ Subject to tenancy.’ All that needs to happen in this instance is that the identity of the landlord will change, but yes, new documents will need to be reissued.
As the limited company is the official ‘new landlord’ (despite the fact that theoretically it is still you!), you are required to issue your tenants with a Section 3, and a Section 48 notice. The section 3 notice formally informs them of the changes and must be issued no later than the next rent due date or two months after the assignment of the new landlord. The Section 48 is simply a legal document provide which gives formal details of the landlord’s address to which tenants may serve notice. Whilst this may not have changed, it is still a requirement. It is also good practice to send a more personal letter (from the new company) explaining the changes, and detailing that rent is now due to the company, not you personally.
There is no need to reissue the How to rent Booklet, Gas Safety certificate of EPC, as long as they are still in date, however, you will have to re-register their deposit.
Your deposit registration scheme will be able to work with you to transfer the deposit to the new landlord, and will provide you with a new deposit registration certificate. You should issue this to your tenant, along with all of the Prescribed Information documentation as you would at the start f any tenancy.
Let my property online from
£99 inc VAT
FREE Instant Online Valuation