How Long Lease Works

How the Long Lease Scheme works and whether it’s right for you.

Due to Covid-19, landlords may currently be facing many other problems we haven’t listed. Please get in touch - we may be able to offer a solution!

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Our Long Lease Scheme is an innovative way of managing your rental property, designed to address many common problems faced by landlords. The scheme is particularly suited to owners who want to generate a steady income from their property, without the hassles of maintenance and dealing with tenants.

When you join the scheme, in effect Ailbe Homes becomes your tenant. We agree to pay you guaranteed rent throughout the period of the contract  — even if the property isn’t currently occupied! This could be for up to five years.

During the contract period, we sub-let your property in a way that’s most appropriate for the type of building and area. For example, the property could be used as a House of Multiple Occupancy (HMO), with rooms rented to professionals, or as a holiday let.

 

Our Long Lease Scheme means that your property can generate a genuinely passive income. We take care of maintaining the property, any refurbishment that’s required, finding suitable tenants and drawing up contracts with them.

This means that you can receive an income without having to deal with any of the problems usually associated with being a landlord.

We're careful to match your property to the most suitable tenants. These could include tourists seeking holiday rentals, workers requiring accommodation close to their employment or people looking for loner-term rentals.

For longer term rentals, we vet and check any potential tenants. As we are maintaining your property throughout the contract, it’s in our interests to find the best and most reliable tenants.

If your property needs updating before it is rented, we will let you know what’s needed. With your approval, we’ll then carry out the work. As experienced property renovators, we are confident in the quality of our work.

Once the rental period begins, we inspect your property regularly and carry out any maintenance required. Your property is also cleaned regularly, and our cleaning team informs us of any issues requiring attention.

Our profits come from keeping a proportion of the rent we receive. In exchange, you receive the convenience of a complete management package that removes all of the hassle of owning a rental property. With longer term rentals, you also benefit from a stable income.

By using our service, your net income may equal or even exceed what you could achieve by renting direct.

Renting directly incurs the costs of finding tenants, drawing up contracts, refurbishment, maintenance, cleaning and many other hidden expenses. We carry out all of those services at a lower rate than you might pay to separate contractors and agencies.

Our Long Lease Scheme also means there are no void periods to eat into your income.

In 2019, the Government announced its intention to scrap Section 21 of the Housing Act. Many landlords are worried that this will make it harder to remove problem tenants. Our Long Lease Scheme removes this worry, because Ailbe Homes becomes your tenant — and that means that any issues with who we're renting to remain our problem, not yours.

The Government has also changed Section 24 of the Finance Act, effectively removing tax relief for landlords on their mortgages and finance costs. This will reduce many landlords’ profits. Again, the Long Lease Scheme can help by consolidating all your maintenance and other management costs.

Depending on the property and your needs, Ailbe Homes can offer contract periods from 12 months to five years. Contracts can be renewed on a rolling basis.

At the moment, Ailbe Homes operates in Chippenham and the surrounding towns and villages of North Wiltshire. If you live elsewhere in the country, we can put you in touch with other long lease services in your area.