Reply To: Loan Costs in Core Rent
I must admit to not having heard anything like this before even from a landlords perspective.
One of the things I would address is what you define as ‘core rent’
In my world, Core Rent is made up of the following:
Basic Rent – either mortgage payments, lease costs, or loan repayment
Housing management – reasonable percentage
Management Overheads – reasonable percentage
Responsive repairs & maintenance – buildings – note ONLY the buildings usually exterior and common areas
Planned maintenance – buildings —- ditto 000
Buildings Insurance
Sinking Fund
Council Tax
Exterior Décor
Development Costs
I add this together to get CORE RENT
After this we add SERVICE CHARGES and deduct INELIGIBLES.
Now you COULD go down the route of ‘designed to take advantage’ but you might be in for a huge amount of work and need for proof (possibly that the original method of calculation was designed to take advantage) but I might argue – “What took you so long??”
You could go for a section 13ZA restriction but you would need to ensure you have appropriate comparisons and many of my peers would argue that section 13 and 13ZA restrictions are ‘overpriced’. i.e. pretty useless
I guess that what I’m saying is that if the total rent is grossly overpriced then get stuck in. But if not — move on — youve got far too much work for which I give you thanks..\\\