Buy to let mortgage holders must ensure they know law

30 April 2010

Written by Jeni Browne

Buy to let mortgage holders must be sure they don't lose out on money by not understanding the law on tenant deposits, Recover My Deposit - specialist solicitors and lawyers who act on the behalf of tenants - have said this week.

When tenants are on an assured shorthold tenancy (AST), where their deposit can be used to plug shortfalls in the event of missed payments or damage to the property, the landlord must pay the deposit into an approved scheme and give the tenant specific information on the scheme chosen.

This law came into force in April 2007 for tenants paying rent less than £25,000 per annum. It will be revised on October 1st 2010 to include tenants paying up to £100,000 per annum so it will affect even more landlords.

For landlords who don't want court fines to impact on their buy to let mortgage repayments, it is very important to abide by this law. If it is ignored, tenants can take the matter to court where the landlord may be required to pay a set amount of money.

Why not take a look at our best Buy to Let mortgages and make an enquiry online now.