If you're transferring property from one owner to another, this is referred to as transfer of equity.

But what is transfer of equity and what does it involve? Let’s take a look.

## What is equity?

Equity is a common legal term used in property law, specifically when talking about property ownership. Equity refers to the percentage of a property that you own outright: your property's value minus your outstanding mortgage.

For example, if your home has a value of £500,000 and your outstanding mortgage is £250,000, your equity would be £250,000.

When you co own a property, the equity is split between the two (or more) owners. So, if one owner wants to give up their ownership, they are legally entitled to their percentage of the equity.

## What is a transfer of equity?

So, what is a transfer of equity? Transfer of equity when you transfer ownership of the property, either by adding or removing someone from the title deeds of a jointly owned property. The property isn't sold; at least one of the original owners has to stay the same.

Equity transfers can be fairly straightforward if all the parties involved agree with the property transfer. Unlike a property sale, there are no house searches required.

However, it is important to be thorough when transferring equity, especially if there are mortgages or disagreements between parties.

## Why transfer equity?

#### Transfer of equity occurs for a number of reasons, including:

* If you marital status changes and you want to add your new partner to the title deeds.
* If you want to add someone like a family member to the title deeds.
* To remove someone from the title deeds like an ex-partner as part of divorce proceedings or the end of a civil partnership.
* For tax efficiency when gifting equity to children or other family members as a gift.
* To buy out the co owner's share of the property.
* To change the percentage shares owned by each party.

## The transfer of equity process

When it comes to transfer of equity, you can't use the same solicitor as the person you co own the property with. Instead, you'll each need to seek legal advice independently from an experienced conveyancing solicitor. The legal process stipulates that each joint owner will need to have separate legal representation to ensure everyone gets independent, impartial advice.

### Here are the stages of the transfer of equity process.

#### Stage one: review the title deeds.

Instruct your own solicitor to review the title deeds to prepare for the property transfer. They'll be able to check the if the equity transfer is being made by the current owner, as well as if there are any outstanding debts or mortgages attached to the property.

Stage two: prepare the transfer deed documents.

Once the title deeds have been reviewed, you'll need to prepare the transfer deed documents.

#### Stage three: meet with the parties involved.

Once the transfer deed is ready, you'll need to meet with each solicitor to sign them in the presence of a witness.

#### Stage four: notify your mortgage lender.

When it comes to transferring equity, you must get the written consent of any mortgage lenders, banks or building societies involved.

Similarly to your own initial mortgage application, your lender will want to run credit checks to ensure the new owner you're bringing onto the lease will also be able to afford the mortgage repayments.

On the other hand, if you're removing someone from the lease, your lender will want to know that the remaining owners will be able to make the monthly payments on their own.

#### Stage five: obtain a valuation.

You'll need to obtain a property valuation in order to work out the monetary value of the ownership share being transferred as part of the transfer of equity. This needs to be done so the right amount of money is given to the leaving party, for example as part of a financial settlement in a divorce.

You may be able to get a valuation with an estate agent, but sometimes a valuation from a chartered surveyor will be needed.

For a quick, instant property valuation, use our Online Valuation Tool here.

#### Stage six: register the transfer deed.

You'll then need to register the deed transfer at the [Land Registry.](https://www.getagent.co.uk/blog/conveyancing/how-long-does-land-registry-take) You'll have to pay the Land Registry a fee anywhere between £50 to £920 depending on how much the property is worth. The Land Registry will update its records.

## How long does transferring equity take?

Equity works pretty quickly if there's no mortgage involved. But if you do have to wait for consent from a mortgage lender, it could take several weeks to transfer equity (depending on your own situation and your mortgage lender).

Transfer of equity may also take longer if it's part of a wider financial arrangement like a divorce settlement.

[Read here for more information about how long equity takes.](https://www.getagent.co.uk/blog/conveyancing/how-long-does-a-transfer-of-equity-take)

## How much does transferring equity cost?

Transferring equity costs vary depending on how much the property is worth. For example, the land registry fees depend on the value of the property.

As well as the land registry fee, you'll have to think about solicitor fees.

## Transferring equity with an existing mortgage

If you want to transfer equity with an existing mortgage, it can be a bit of a trickier process.

You can't leave the property deeds without paying back the debt you used to purchase the property in the first place. After all, your mortgage payments are part of a credit agreement you're obliged to uphold until you pay off the debt.

The person leaving the title deeds will also need to be released from the mortgage terms and conditions. That means no longer being liable for mortgage repayments.

As such, you'll need permission from your [mortgage](https://www.getagent.co.uk/blog/mortgages/what-is-a-mortgage) provider before the transfer of equity can take place.

There are a few ways you can do this, including:

#### Pay off your mortgage payments

This means paying off the mortgage with other resources.

#### Consent as part of a buyout

You may be able to get your mortgage lender's consent to transfer of equity as part of a property buyout. For example, the co owner might buy your share of the property.

#### Remortgage

You could also remortgage your property (this means getting a new mortgage with a with a new lender) in order to secure enough funds to pay off the existing mortgage repayments, as well as securing extra to buy out your joint owner. This may be preferable if you're going through a divorce or separation and you want a completely clean slate.

#### Transfer of equity as a gift

This is a less common process, but it may be used for tax efficiency purposes. The transfer of equity happens without any money changing hands, which makes it more tax efficient (for example, if parents transfer documents as part of gifting houses to their children).

## Capital gains tax implications

There may be capital gains tax implications if you transfer equity for certain reasons. For example, if you're transferring ownership because of a Financial Remedy Order on divorce, and the property is the main home of both parties involved, you'll probably be exempt from capital gains tax.

But if the transfer of equity is to an adult (for example as a gift to a child) it might be treated as an exempt transfer of equity because of inheritance tax.

## Equity and stamp duty land tax

You may also have to pay stamp duty (SDLT) in certain cases when it comes to transfer equity. For example, if you're buying out a co owner's share of the property, you'll have to pay SDLT.

If you're not sure about whether or not you have to pay SDLT, you should always seek professional advice to ensure you're making the right decision based on your individual circumstances.

If you want to go through transfer of equity into joint names (for example, if you're just married) you may also have to pay SDLT. Even though no money changes hands, you'll have to pay stamp duty because the new joint owner is taking on half of the mortgage debt (if you the monetary value of the property is above the threshold subject to stamp duty land tax).

#### Stamp duty land tax example

A property owner has a £300,000 mortgage on a property valued at £400,000. They get married and want to undergo an equity transfer with their new partner.

This means the new partner takes on half the mortgage, which is known as chargeable consideration. They'll be responsible for £150,000.

They must therefore pay stamp duty on that amount.

## If the mortgage lender doesn't give consent

You must get written consent from your mortgage provider before you can transfer equity. However, they may want to change the mortgage conditions before consenting, and they might not offer any consent at all.

If that's the case, the only way to continue with the transfer of equity process would be to repay ther mortgage in full. And remember you may be charged a redemption fee for this.

## Summary: A change of ownership arrangement

You should now have a better idea of what transfer of equity is, why it's used and what it involves.

One of the key elements with an equity transfer is knowing the value of your home. For an instant valuation use our [Online Valuation Tool here.](https://www.getagent.co.uk/online-valuation)


equity-getagent

What is transfer of equity and what does it involve? Let’s take a look.

What is a transfer of equity? | GetAgent

What is a transfer of equity?

A **[Declaration of Trust](https://www.getagent.co.uk/blog/conveyancing/declaration-of-trust)** is an important document in the world of property ownership - by outlining the responsibilities and shares of each owner, it serves to protect their interests. But what if you want to challenge a declaration? 

In this article we explain the process, step by step.

## Declaration of Trust: Explained

A Declaration of Trust is a legally binding document that sets out the financial arrangements regarding property ownership. It's a super useful document for three reasons:

* It sets out the financial obligations of each person with a share in the property (who owes what for mortgage repayments. 
* It says exactly who has a beneficial interest in the property, protecting their rights (useful for when you eventually sell the property).
* It serves as a contingency plan, outlining a course of action in case of unforeseen circumstances, like changes in ownership and disputes among the parties involved.

## What makes a Declaration of Trust legally binding?

A Declaration of Trust becomes a legally binding document when the following are satisfied:

* All parties described in the document have consented to creating the legally binding agreement.
* The terms of the declaration are clearly communicated and agreed by all parties. These terms must also be capable of being performed, with vague clauses undermining the document's legality.
* All parties have the legal capacity to enter into the declaration, being sound of mind and not under duress.
* The agreement involves something of value exchanged between the legal owners, like financial contributions, responsibilities and benefits related to property ownership.
* Signatures, witnesses and registration with relevant authorities are required to enhance the document's legal standing.
* Lastly, the document needs to comply with all the laws and regulations that apply to property ownership and contracts.

## Can a Declaration of Trust be challenged?

Yes! While a Declaration of Trust is a legally-binding agreement, you can in fact challenge one. If the challenge is successful, you can alter its contents with additional clauses or create a new agreement entirely. 

Sometimes it's worth making a new declaration, but for small changes, you can use a **Deed of Variation**.

## Five reasons to challenge a Declaration of Trust

While there are valid reasons for challenging a Declaration of Trust, it's important to emphasise that anyone contemplating this course of action will require legal advice. You can't approach this sort of thing without the help of a legal professional, especially if the parties involved are at odds with one another.

#### 1. Lack of capacity

You could challenge a trust deed on the basis that one or more parties lacked the mental capacity to understand the legal implications of the document at the time of its creation. For example, an elderly person suffering from dementia may have signed the document without fully comprehending the consequences.

The party pursuing this challenge could argue that since the person was not in their right state of mind, the agreement stands on shaky grounds, and as a result, must be amended.

#### 2. Duress or undue influence

A Declaration of Trust can also be challenged if a party believes that they were subjected to coercion, duress, or undue influence. Any such treatment would render their consent to the terms involuntary. 

One scenario may see **Person A**, facing financial hardship, coerced by a wealthy family member, **Person B**, into signing a declaration that significantly favours the interests of Person B. Person B might threaten to withdraw essential financial support unless Person A agrees to the terms outlined in the document.

Person A may decide to challenge the declaration based on the fact that their agreement to the document was obtained through the coercive tactics of Person B.

#### 3. Fraud or misrepresentation

If fraud or misrepresentation were used to obtain a party's signature in the Declaration of Trust, there is strong basis for a legal challenge. 

For example, if a party engaged in phishing activities to impersonate a legitimate party involved in the declaration's creation, and the party signed the document under the false belief that they were interacting with the authentic party, this could be considered fraud.

#### 4. Mistake

While a legal document should always be checked thoroughly, mistakes happen - and a declaration could be challenged on the grounds of mistake. This could be a mutual mistake by all parties (which makes the process of challenging and correcting the mistake much more straightforward) or a unilateral mistake that the other parties took advantage of.

#### 5. Illegality or violation of public policy

If the trust agreement involves actions prohibited by law or goes against societal norms, a challenge can be made. For example, the declaration may seek to facilitate illegal activities or violate recognised ethical standards, providing the courts with the means to alter the terms of the property's legal ownership.

## What's a Deed of Variation?

If you succeed with your challenge and the current Declaration of Trust doesn't quite fit the bill for everyone involved in the property, there's an option to go for a Deed of Variation. This document lets the parties tweak the original terms without having to start from scratch. Once everyone's on board with the changes, they sign off on the deed of variation, locking in the adjustments.

## How to challenge a Declaration of Trust

While it's possible to avoid legal proceedings while challenging a declaration (especially if the parties involved are in agreement), they're unfortunately a typical part of the process. That's why it's really important to get the first step sorted - enlisting the help of a reliable solicitor. 

#### 1. Consult with a solicitor

If you want to challenge a Declaration of Trust, a solicitor is your first point-of-call, ideally one who specialises in trusts and estates. They can help you determine the grounds for challenging the trust and guide you through the legal process.

Generally speaking, the more you pay for a solicitor, the better they are - but you can expect legal fees to be in the region of **£1500 - £5000**. However, they can be much higher depending on the complexity of the case and the value of the property.

#### 2. Identify the grounds for challenging

Your next step is to clearly identify and establish the grounds on which you are challenging the declaration of trust. This could include any of the reasons mentioned above, including lack of capacity, undue influence, fraud, duress, or mistake.

#### 3. Gather evidence

The next step is to gather any evidence that supports your challenge. This may include documents, witness statements, or any other relevant information that can help support the grounds on which you are contesting the legitimacy of the agreement. Your solicitor will help direct the focus of your evidence gathering, advising you on what will best support your case.

#### 4. Begin legal proceedings

Your solicitor will help you begin the legal process of challenging the declaration by taking out all of the necessary documents with the courts. Be on hand to help your solicitor where needed as they may regularly need your input at this stage of the process.

#### 5. Notify parties in the declaration of your intention

At this point it's time to notify all the parties involved in the declaration about the legal challenge. They will have an opportunity to respond and present their case. 

#### 6. Possible mediation or settlement

There may be a chance to resolve the situation before going to court, but the joint tenants or owners (whoever is mentioned in the official Land Registry documents) must be in unanimous agreement for this to happen.

#### 7. Court proceedings

The case will proceed to court, where both parties present their arguments and evidence. The court will evaluate the legal merits of the challenge and make a decision based on the available evidence.

#### 8. Court decision

The court will make a decision based on the evidence and arguments presented. The outcome may involve declaring the declaration invalid, modifying its terms with a Deed of Variation, or upholding its validity.

## Summary: Legal work for the professionals

Challenging a Declaration of Trust is a nuanced process best handled by the professionals. If you believe you have valid grounds for a challenge, it's in your best interest to engage in due process. Seek the expertise of a reputable solicitor, gather the necessary evidence, and explore alternative mediation options, if available.

What is a Declaration of Trust?

A Declaration of Trust is an important document in the world of property ownership - by outlining the responsibilities of each owner, it serves to protect their interests. But what if you want to challenge one?

Can a declaration of trust be challenged? | GetAgent

Can a declaration of trust be challenged?

Whether you're a homeowner or a renter, utility bills are a big part of living in a property. But what counts as a utility bill, and is [council tax](https://www.getagent.co.uk/blog/properties/what-do-i-pay-council-tax-for) included?

Paying council tax is a legal requirement, and it's paid monthly to the local council. But does it count as a utility bill?

In this article, we'll be running through the ins and outs of utility bills, council tax, and if they come as a package. Let's dive in!

## What are utility bills?

**Utility bills** are invoices from a utility company that provides **water, telecommunications, or gas and electricity** - basically any services that keep a property functioning.

It will usually include the number of goods or services that have been used, as well as their respective costs.

Different companies will charge differently, so it's always best to do your research to ensure you're getting the best deal for you.

#### How much is the average utility bill?

There isn't really an average cost for utility bills. The cost will be calculated by how much energy you use during a given time period.

So, **the more you've used, the more it will cost.** For example, if your energy consumption was high over the winter months, your energy bill will be high as well. Costs may also vary depending on your location, local climate and how big your property is.

Your provider might have given you a fixed rate, but these are quite rare.

Utility bills are still regulated by some local authorities and governments to ensure they're charging fair rates for their services.

Utility bills are usually **paid monthly via direct debit,** but your utility provider might ask for an annual prepayment in exchange for a discounted service.

![electric-getagent](//images.ctfassets.net/us6n8ous4bz0/6RQ5iwgZqoMIoq9EAib274/304a44815a6fd5d78ae36c099a694ac7/electric-getagent.png)

## What counts as a utility bill?

So, what are some utility bill examples? Anything that's needed to keep your house or flat running is classed as a utility, so could include any of the following:

#### Electricity

One of the biggest elements of energy bills is **electricity usage.** After all, electricity is essential for most of the key appliances in your home to function, from lights and heating to washing machines, televisions and dishwashers.

Of course, in a Cost of Living Crisis, people are always looking for ways they can save money on their energy bills.

You can try and reduce your electricity bill by using more **efficient appliances and devices,** as well as maximising efficiency when it comes to your energy usage.

For example, you could wait until you have a full load of washing before using the washing machine, or remember to switch off machines that are on stand-by when you know you won't be using them for a while.

Utility companies will have varying rates for their electricity usage costs, so make sure you do your research to find the right energy company for you.

#### Gas

**Gas** is another key element to your energy bill. Gas will go towards heating and cooling your home. It can also be used for other appliances like your oven.

How much gas you use in a billing period will impact the cost of your bills, so it's good to think about ways you could save money and reduce energy consumption.

For example, you could lower the thermostat by a couple of degrees - it's such a minor change you probably won't notice the temperature difference, but it could do wonders for your average bill.

Not only that, you could also switch to a **more sustainable energy provider who prioritises a greener regime.** After all, many homeowners are now looking for more ways in which they can [make their home sustainable.](https://www.getagent.co.uk/blog/diy/sustainable-house)

#### Water

Water bills cover (you guessed it) all the water that enters and leaves the property. From the bath and shower, to the taps, toilet, washing machine and sewer systems, it's all covered by your water bills.

You can check your water metre readings to find out how much water you use during a given period, and try to find ways to reduce it.

It could be simple changes like shortening your showers, turning off running taps and only using the washing machine or dishwasher when you have a full load, rather than half a load.

It's also good to fix any leaks in the taps, sinks or toilet valves as soon as possible to minimise any water wastage.

#### Telephones

When you're setting up broadband or internet for WiFi services, you'll need to have a landline set up. Home phone bills are usually considered to be utility bills, but this only refers to landline phones.

Other expenses like mobile phones aren't considered to be a utility bill because they're for personal use and there are hundreds of different types of phone bill contracts out there.

For landline phones, telephone companies charge utility bills as they provide a service to the public, like energy providers.

Phone bills are paid in monthly instalments. You can either pay depending on your usage or through a pre agreed tariff.

## What is council tax?

So, now you've got a better idea about what counts as a utility bill, where does council tax come in?

**[In the UK, council tax is a mandatory local tax applied by your local authority. ](https://www.getagent.co.uk/blog/properties/what-do-i-pay-council-tax-for)** While utility bills are based on usage, a council tax bill is based on the value of a property.

[You can find out how much your property is worth here.](https://www.getagent.co.uk/online-valuation)

It is updated annually and different councils will have different rates, known as **council tax bands.**

Council tax is collected by the local government and pays for **public services like transportation and roadworks, rubbish collection, law enforcement and education.** You'll often pay in monthly instalments.

You can find out how much council tax you need to **pay on your local council's website.** You then need to pay council tax directly to your local government - this can be done via online services, direct debit, cheque, or cash at a Post Office or PayPoint location.

Paying council tax is compulsory, but some people may be eligible for savings on their council tax bill if they meet certain requirements (for example if you live alone or live with students).

Always make sure to check your local council website to find out how much you need to pay.

## Is council tax a utility bill?

Short answer? No. Despite being a household bill, **council tax is not a utility bill.**

Unlike utilities bills which are based on how much you consume, council tax is based on a property's worth. This means how much you pay depends on where you live, and it's updated annually.

This means a council tax bill might not be accepted as valid proof if you're asked to provide a utility bill.

**It is, however, a compulsory payment as part of living in a property (unless you are exempt).**

## Television licences

With technology ever advancing with online streaming services, not everyone might have a TV licence. But if you want to watch live TV like the news and BBC, **you must pay for a television licence.**

A TV licence isn't usually counted as a utility bill because it's not an essential service. However, if you do want to use its services you have to pay an annual bill.

## Proof of address

You'll sometimes be asked to provide proof of address, for example if you're registering with a new GP or applying for rented accommodation. The company won't use it for anything else, just for proof of address.

You mustn't use a fake utility bill to try and prove your address. If it's found out, you could end up in a lot of legal trouble for fraud or forgery. And you almost definitely won't have your application accepted.

#### Is a bank statement a utility bill?

A bank statement doesn't count as a utility bill. It's just a clear breakdown of the contents of your bank account including your income and outgoings. It's a good outline of what your bank is doing with interest rates.

## Do students pay council tax?

**Full time students aren't legally required to pay council tax.** As long as you have a council tax exemption certificate, you won't have to pay council tax as a full time student.

**If you're living in a home with full time students as the only earner, you get a 25% discount on your council tax bill.**

To qualify as a student and be exempt from council tax, you must be one of the following:

#### A foreign language assistant

You must be registered with the Central Bureau for Educational Visits & Exchanges as an appointed foreign language assistant at a school or other educational institution in the UK.

#### A full time student

You must be enrolled in a full time course with an educational institution such as a university. The course must run for at least one academic year, requires at least 24 weeks attendance per year, and requires study, tuition or work experience worth 21 hours per week.

#### Taking a qualifying course

You must be under 20 years old and not taking any sort of full-time education.

The course also has to be longer than three months and be more than 12 hours per week with tuition or studies between 8am, and 5.30pm. It can't be a correspondence course, and it also can't be taken in connection with a job.

You can usually apply for council tax exemption online, or request an exemption certificate from your university or school.

![council tax-getagent](//images.ctfassets.net/us6n8ous4bz0/2yJFe3xYddcpk4DDxhutU7/51298d8432630914964ed49ba6ed3bac/council_tax-getagent.png)

## Summary: Don't include council tax in your utility bills!

Though council tax is a compulsory annual payment, it's not classed as a utility bill. You'll need to check your local authority website to find out how much council tax you need to pay, and make sure to add it to your monthly budget!

For more homeowner tips, [check out our blog!](https://www.getagent.co.uk/blog)


cover-getagent

In this article, we'll be running through the ins and outs of utility bills, council tax, and if they come as a package.

Is council tax a utility bill? | GetAgent

Is council tax a utility bill?

Picture this. You've just invested in one, two, maybe multiple rental properties. You’re ready to start your journey as a landlord. 

But how do you go about managing a property? Or managing multiple properties? It can seem like a daunting prospect. The amount of time and knowledge it takes to collect rental payments, stay on top of legislation, liaise with tenants...it can seem overwhelming.

That's where **property management** comes in. If you don't have the time to manage all the properties you own, it might be worth outsourcing the work with an experienced professional. It can save you time and stress as they take on the workload for you.

But how does property management work? What are the different types of property management and how can you find the right one?

We'll be covering everything you need to know in this article. Let's dive in!

## What is property management?

Property management involves **staying on top of the maintenance of a building, overseeing property assets, and adhering to any health and safety regulations, as well as other lettings legislation.** They also act as a **communication bridge between a property owner and property occupant** (for example a landlord and a tenant in a rental property).

They'll help ensure both parties are happy with the property, stay on top of its day to day operations, and make sure all obligations under the rental agreement are fulfilled.

![letting-agent1-getagent](//images.ctfassets.net/us6n8ous4bz0/2mXjTFPc0KL4GZlHg8O3pZ/1dd54e21d96bea0590658d29ac2f3089/letting-agent1-getagent.png)

## What is a property manager?

A property manager's role is to **maintain the value of the property whilst generating income.** Property management services are traditionally associated with long term residential, commercial and industrial properties. But since [short-term lettings like Airbnb have risen in popularity,](https://www.getagent.co.uk/blog/research/short-term-rentals-account-for-7-of-total-housing-stock) more and more owners are seeking property management.

Property managers will usually work on behalf of property owners, but they can also work with businesses with large property portfolios (like hospitality or retailers).

They're sometimes employed directly by a property owning business, but most of the time, property managers will work for a professional property management company.

## How to find the right property manager

If you're trying to find a property manager, make sure to look out for a local and respected letting agency who has good experience in your property type. Make sure they're a good communicator, calm and considerate, whilst also highly organised and reputable.

## Property management services

Property management services can vary depending on the size and type of property. In short, they're in charge of managing properties. But what does this mean? Most of the time, services will include:

* Reception or concierge services like security, guest entry and receiving deliveries.
* Carrying out regular property inspections to ensure everything is adhering to health and safety regulations.
* Managing tenant relations.
* Performing maintenance and repairs.
* Managing the finances of the property (this may include deposit protection, collecting rent payments and service charge collection).
* Maintaining and cleaning any communal areas and facilities like hallways, gyms, gardens, bike storage and parking.
* Managing rental and lease agreements, record keeping, advertising properties, screening tenants and tenant referencing (though often a letting agent will do that for the homeowner instead).

#### Additional property management services

As well as the standard property management services, some companies will offer extra, including:

#### Building data and insights

They can use enhanced data and monitoring of the property to get a better insight into how it operates. This can help inform a property owner's decision on how to best upgrade the property, what's the most cost effective, and what's the best type of long-term investment.

#### Advanced technology

For [smart buildings,](https://www.getagent.co.uk/blog/diy/what-is-a-smart-home) some property managers use advanced technology for managing property, like [security,](https://www.getagent.co.uk/blog/moving-house/feeling-safe-in-your-new-home) maintenance monitoring, and lighting and temperature control. Not only can this save owners and occupiers a whole lot of money, it can also provide preventative maintenance, as well as increasing the energy efficiency of the building. And everyone wants a more sustainable property!

![letting-agent2-getagent](//images.ctfassets.net/us6n8ous4bz0/2GZFX0Mqq2zDx6mNWOxfHK/6ff310b652aa1807a665d812a824bf9e/letting-agent2-getagent.png)

## Types of property management in the UK

There are three main property types in the UK.

### Residential property

**Residential property management** involves overseeing (you guessed it!) residential properties like flats and apartments. Residential property managers handle the day to day goings on of any residential property, which includes:

* Handling tenant requests and complaints.
* Finding potential tenants including tenant screening.
* Collecting rent.
* Ongoing maintenance.
* Generally keeping up appearances.
* Tenant support and tenant relations.
* Understanding residential rights.

### Commercial property

**Commercial property managers** oversee commercial real estate like stores, restaurants and offices.

Commercial property management services may differ slightly, because it might require commercial-grade maintenance or specialist cleaning services. 

They'll also need more frequent attention than residential property management because they'll have varied occupations and longer leases.

### Holiday homes

**Holiday property management** is used for those who have invested property that they plan to rent on holiday rental platforms.

It will include services like screening suitable tenants, marketing holiday homes, and planning promotions and discounts. They may also offer online viewings or offer accompanied viewings.

Holiday property managers will also need to stay in contact with guests throughout the course of their stay, as well as maintaining the property between guests.

## Why should you use a property manager?

Managing properties takes time and resources, especially if you're managing large or multiple developments. Here are the benefits of outsourcing effective property management.

#### A professional job

A professional property manager will have the experience to deal with all obligations required of them, so homeowners don't have to - and may have more experience than you in specific areas like health and safety, property law, accounting and customer service.

#### Saving time

Not only that - through maintenance and upkeep, using a property management company will be able to maintain and even **[add value to your home,](https://www.getagent.co.uk/blog/research/8-ways-to-add-value-to-your-home-in-2024)** saving you valuable time.

#### Keep tenants happy

A property management company will act as the bridge between you and your tenants, managing all communication. They'll ensure tenants are looked after and take care of any extra services they need while they're occupying the property.

Property managers have specialist skills and knowledge in communication, so will be able to deal with guest and tenant enquiries efficiently.

Property management companies also have access to a lot of different guest communication tools like automated messaging services. Not only does this add a level of professionalism, it also saves time for the property owners.

#### Property maintenance solutions

One of the biggest benefits of using a property management company is that they'll often take care of ongoing maintenance and day to day repairs, so you don't have to. They'll also offer preventive measures to ensure the building is kept well.

You'll have a good rapport with your property management company which means you'll trust that they can get the job done effectively, enabling you to give your guests the best experience.

## Property managers versus landlords

So what's the difference between a landlord and a property manager? A landlord is the property owner, while a property manager is hired by the landlord to oversee the property and deal with tenant affairs.

But if you self manage your properties as a landlord, that makes you a property manager as well!

## How to become a property manager

If you have an interest in real estate property, you might be wondering how you can get into property management.

You'll need a **real estate broker's licence** to work as a successful property manager and give you credibility in your field. You can acquire a broker's licence through the local authority, real estate boards, or via ARLA (Association of Residential Letting Agents).

You'll also need really effective communication skills, as that is a key part of property management. You'll need to maintain good relationships with tenants, communicate with them well, as well as having a comprehensive understanding of lettings compliance landlords need to follow.

And of course, you'll need to be really really organised if you want a career in real estate. Undertaking regular inspections, staying on top of legislation and regulation changes, managing tenancy deposits, renewals, and disputes, the works. It's a lot to think about, and you always need to be in the know.

If property owners want to self manage their rental properties, it's important to have these skills, keep on top of maintenance issues, and stay up to date on legislation and obligations - after all, you don't want to find yourself in legal trouble.

## Regulating property management companies

The UK had two main organisations to ensure the professional standards of property management companies are maintained: **Royal Institution of Chartered Surveyors (RICS) and ARLA (Association of Residential Letting Agents).**

RICS and ARLA both have a code of conduct for property managers and landlords in the UK, specifying best practices and how to improve the standard of the business. They also ensure property management companies comply with legislation.

![letting-agent-3-getagent](//images.ctfassets.net/us6n8ous4bz0/1PNnLvaPcT6Tcd5tkzAriJ/d53d0f8b855e4dbcf75a897aa3c4265c/letting-agent-3-getagent.png)

## Property management fees

If you're looking for a letting agent or property management company to manage your property, the fees you'll pay will depend on a number of different factors.

For example, if your property is managed by a letting agent, their fees may vary than fees by a specialist property management company.

You'll also be charged differently depending on the management agreement with your property manager. There are different fees for different levels of service.

There are usually three tiers of property management:

#### Tenant-find only

With a tenant-find management style, the letting agent will handle tenant screening, referencing, rent collection, and collect tenant deposits with a deposit protection scheme. They'll also draw up an inventory and a tenancy rental agreement for a **one-off fixed fee.**

#### Rent collection

With a rent collection management type, your property manager or letting agent collects the rent from your tenant and processes the payment to you. They'll also chase the tenant's rent if it's late. This service also comes with a **fixed fee.**

#### Full property management

A full property management service means your letting agent will oversee all aspects of the property, from rent collection and maintenance requests to keeping up with legislation. For those who want to own their property with a completely hands-off management style, this type of property management would be perfect.

For a full management service, the property manager will take a percentage of your **monthly rent as payment (it'll usually be between 10% and 20%).**

## Property management agreements

So, how do property management agreements work?

They're quite similar to a tenancy agreement between a landlord and a tenant. **Property management agreements are a legally binding contract that outlines what's expected from each party.**

A property management agreement also outlines the fees that need to be paid by the property owners, as well as the timescales of the agreement.

You'll need to sign an agreement between you and your property management company if you want them to manage your property - otherwise you could face a lot of legal issues. It also protects your interests if you feel like they haven't fulfilled their duties.

## Summary: Taking care of your property for you

Property management is a great way to outsource a lot of the work that comes with owning a rental property. There are different levels of property management for those who have differing needs, which is great for landlords who might want to get a bit more involved in their property management!

Ultimately, property management is no mean feat, and takes a lot of work. That's why property management companies are out there - to help those maximise their investment!


How does property management work? What are the different types of property management and how can you find the right one? We'll be covering everything you need to know in this article. 

What is property management? | GetAgent

What is property management?

Does your property sit adjacent to a patch of grass or an open green space? Not sure who owns it? There's a chance that this is residential **amenity land**. In this article we take a closer look at amenity land - who owns it and who can build there - and whether you too can build there.

## What is amenity land?

Amenity land is green, unfenced land that borders residential dwellings. It serves to enhance the aesthetic appeal and greenery of neighbourhoods. It's not unusual to find dog walkers, families and friends making use of these public areas.

## Who owns amenity land?

Amenity land is typically owned by the council for the purposes of providing recreational benefits to adjacent property owners. If you're unsure who owns the land, you can always check **[HM Land Registry](https://www.gov.uk/government/organisations/land-registry)** to see if the title or deeds are available.

## The importance of amenity land

Green spaces are like the friendly gathering spots of local communities. They act as a sort of 'breathing space', nestling among homes, encompassing parks, playgrounds, and other inviting public areas. They significantly boost the quality of life in UK towns and cities.

Let's take a look at the some of the other benefits amenity land has for the local community:

#### 1. Increased property value

Proximity to well-maintained amenity land can have a positive impact on the value of local real estate. Homes near such land are more attractive to potential buyers, who are willing to pay a premium for cheerful suburban settings.

#### 2. Mental health

Access to green spaces has been linked to improved mental health and well-being. Having areas for relaxation and reflection reduces stress and promotes a healthier lifestyle.

#### 3. Aesthetic and environmental value

Green spaces enhance the visual appeal of neighbourhoods, providing a break from the hustle and bustle of the city and contributing to a more pleasant living environment. They also encourage environmental sustainability by absorbing carbon dioxide, providing shade, and helping to mitigate the urban heat island effect.

#### 4. Recreation and leisure

Amenity land provides spaces for recreational activities such as walking, jogging, picnicking, and playing sports. These activities contribute to the physical and general well-being of local residents.

## Can I build on amenity land?

Sadly not. You may wish to extend your property onto amenity land, but residents are limited to a maximum of **28 days a year** for semi-permanent structures. This is usually seen in the form of festivities, lemonade stands and car boot sales.

To build permanent structures on amenity land you first need to **apply for planning permission** to purchase the land from the council...but this can be a long road. Councils are reluctant to sell amenity land to residents.

#### Why are councils reluctant to approve planning permission for amenity land builds?

There's a number of reasons why councils don't like approving planning permission for amenity land builds...

1. **Community:** Amenity land can play a big role in the community. Your local authority may be reluctant to infringe upon public spaces enjoyed by multiple households.
2. **Long term planning:** Councils adhere to specific urban planning and local planning policies to maintain balanced development in the community. Selling amenity land to homeowners for private builds might conflict with these regulations and disrupt the planned use of land.
3. **Environment:** It's the prerogative of the local council to maintain the natural integrity of rural areas and open spaces. Allowing a homeowner to extend their property into amenity land might contradict these efforts.
4. **Public opposition:** Lastly, because amenity land is a shared space and planning applications are open to public inspection, other neighbours or homeowners may challenge the application. 

## The application process for building on amenity land

![Amenity land application](//images.ctfassets.net/us6n8ous4bz0/2LYvD0biaTZo6EaSHrl5p/b344579dd50b9c555b4626d83f2160cc/amenity-land-application.jpg)

The road to building on amenity land isn't an easy one. While we've outlined the key steps below, it's worth getting in touch with a professional, like a local planning consultant. They'll be familiar with the guidelines in your area, allowing for a more appropriate application that's more likely to be accepted.

### 1. The initial application

This step involves initiating the planning application process with the local council. It's about expressing your interest in acquiring or licensing amenity land and providing the council with essential information.

Your initial application needs to outline...

* **Your purpose:** Clearly state why you want the land and what you plan to do with it.
* **Details:** Provide the address, size, and features of the land you're interested in.
* **Use of land:** Explain how you intend to use the land, such as for living or recreation purposes.
* **Environmental impact:** If applicable, share any efforts to minimise the impact on the environment.
* **Community benefit:** Describe any positives your use of the land may have for the local community.
* **Finances:** Show that you have the financial means to acquire or license the land.
* **Legal compliance:** Ensure your plans follow all relevant laws and regulations.
* **Timeline:** Provide a realistic schedule for the acquisition process.
* **Supporting documents:** Include any extra documents that support your application.
* **Contact information:** Give accurate contact details for easy communication.

Providing this information helps the council understand your initial proposal and evaluate the eligibility of the land for sale or licensing. 

### 2. Your location plan

Upon receipt of the application, the council will provide the applicant with a location plan. You must use the plan to specify the desired area of the land. The location plan must be returned to the council for thorough assessment.

### 3. Preliminary assessment

The council will conduct a preliminary assessment to ascertain whether the proposed land acquisition can proceed. In certain instances, the land may not be owned by the council or legally available for sale, leading to an early conclusion of the application process.

### 4. Application fee

You're obligated to submit a **non-refundable application fee (£50)**. This fee covers the council's administrative expenses associated with processing the application. If the sale is agreed upon, the fee is deducted from the overall costs upon the completion of the transaction.

### 5. Surveyor inspection

The council thoroughly examines its property records and appoints a surveyor to conduct a land inspection. Subsequent to the inspection, the council will provide you with a letter detailing the findings and the costs associated with purchasing or licensing the land.

### 6. Planning permission

While Step 1 (Your initial application) focuses on declaring your interest and providing basic details, Step 6 requires a more detailed assessment and application for planning permission.

This involves confirming your decision in writing and formally applying for permission to change the use of the land. This step ensures that your plans align with local planning regulations and that the local authority approves the intended use of the land.

### 7. Legal completion

After it's obtained permission, the council's legal services team concludes the transaction, finalising the purchase or granting of the licence.

## Legal fees for obtaining amenity land

| Service                            | Cost                     |
| ---------------------------------- | ------------------------ |
| Application                        | £50 + VAT                |
| Surveyor                           | £300                     |
| Legal                              | £300 (varies)            |
| Homes England fee                  | Approximately £1000      |
| Planning                           | Refer to planning portal |
| Public open space statutory notice | Approximately £200       |

Let's take a look at the costs involved in obtaining planning consent for amenity land…

## Summary: All for one and one for all!

Amenity land shouldn't be taken for granted - it's a valuable asset for the local community. That's why if you're planning on extending your garden or property into amenity land, your plans will most likely be rejected. But if you ever feel an itch or compulsion to build on it, and think you have a fair shot of succeeding, get started by checking the Land Registry and finding out if the council owns the green space.

What is amenity land?

Does your property sit adjacent to a patch of grass or an open green space? Not sure who owns it? There's a chance that this is residential amenity land. 

What is amenity land? | GetAgent

Does your property sit adjacent to a patch of grass or an open green space? Not sure who owns it? There's a chance that this is residential amenity land.

There are plenty of reasons as to why you might want to buy land. Maybe you're thinking about starting a self build project for your own custom build, bespoke home. Or you might be undertaking a land development project for a commercial or residential property. Or you might just want to make a long-term investment in a high value area and see where the market takes you.

If you haven't bought land before, it might seem like a daunting process - one that's completely different to buying and selling a property. But in reality, buying land can be a much smoother and simpler process than buying property. You just need to know where to look, and what you're in the market for to find the right plot.

So if you're ready to build your own home or make a new investment, **let's take a look at how you can buy land in the UK.**

## Different types of land

There are two main types of land: greenfield and brownfield land.

#### Greenfield land

**Greenfield land** has never been built on before. **A greenfield site is full of undeveloped land.** You can get greenfield land in urban areas, but they're often based in rural areas like woodland, grassland or agricultural land. It could even literally refer to a green field!

#### Brownfield land

**Brownfield land has been built over previously** (not including farmland) but is no longer being used. Brownfield sites have been (or still are) previously developed and are occupied by permanent existing structures.

## The land buying process

So, what's the process for buying land?

Although it's similar in some ways to buying property, buying land varies significantly in many other ways - and in some cases, the role of an estate agent is really minimal.

We’re going to take you through the land buying process and what you need to think about before buying land.

### Finding land for sale

First, you'll need to **find rural plots of land available for sale.** Whether you're using an estate agent, land agent, an appointed representative, or looking independently, make sure you **set out specifications clearly before starting your search.** Include the size, location and purpose of the plot of land you're looking for.

Sometimes you'll be able to talk to the owner of the land directly, or search for land for sale on the internet.

But in the vast majority of cases, you'll be able to check the specifications and status of the land via the **HM Land Registry.**

[You can find out more about how HM Land Registry works here.](https://www.getagent.co.uk/blog/conveyancing/how-long-does-land-registry-take)

![land-getagent](//images.ctfassets.net/us6n8ous4bz0/2SzXi05M81sqFGtgkq0ic6/2841799e9b4faef69afbe677c534fed9/land-getagent.png)

### Factors to consider

#### Cost of the land

If you're not interested in the long game, finding the cheapest land for sale might not be your top priority. But if you want to buy land as a long-term investment, you may want to find cheap land that holds value or has the potential to grow in value in the future.

You'll also need to **think about your budget,** including the price of financing when you're budgeting for buying land.

#### Location

**You can talk to the local planning authority or local council to register your interest in a plot of land in a particular area.** Building good relationships with local council members and land agents is a good way to beat the competition for popular plots of land.

Just as with property purchasing, **location plays a big part in the price of land.** So remember - if you've found the ideal location for your land purchase, it might be more expensive if it's in the Southern regions of England.

However, it could be worthwhile to make an investment in a cheaper area that holds higher projected value. You could then use the site as a basis for a development project.

## The benefits of buying land

Take a look at some of the key benefits of buying land.

#### It's a secure investment

Land can't be stolen or destroyed, and you don't have to do anything with it. Because it doesn't deteriorate (unless it's in a volatile area), the land is still worth something, even if it stays in an undeveloped state.

#### It's a limited resource

Unlike properties, land is a limited resource as no-one can make any more of it. This makes it a really valuable investment. It's also a tangible resource, which makes it more secure even if monetary values change over time.

#### It's low maintenance

One of the great benefits of purchasing and owning vacant land is you don't have to spend time dealing with a lot of the issues that come with buying property, including electricals, foundations and plumbing - there's little to no maintenance required.

Unlike commercial buildings, undeveloped land doesn't need any upkeep. You also don't have to deal with making changes to an existing property that isn't fit for purpose.

#### It's easy to purchase land

In a lot of cases, land purchases are private, cash transactions that don't require expensive loans or mortgages with high-interest rates.

But if you are on a budget, there are a tonne of affordable financing plans that make it possible for people to buy land.

## Buying land for a residential or commercial property

Buying land to build a commercial or residential property (or you want to sell it via an estate agent so other people can use the land for these reasons) is more expensive than agricultural land. It can also be expensive to prepare the land for building commercial or residential properties.

![diagram-getagent](//images.ctfassets.net/us6n8ous4bz0/4Mj7MNQQnjZmpa0aSbPOd1/7d17e10798e33124c61c945187640ff0/diagram-getagent.png)

## Questions to ask when buying land

You might think you've found the perfect plot for your dream home or next investment, but it's important to double check all the fine details.

Here are some questions to ask the current land owner:

* Are there any issues with the land?
* Why are you selling the land?
* Are you selling land via an estate agent or independently?
* If there's an existing infrastructure or current property on the plot, what type of property is it?
* What are the access rights?
* Is planning permission in place? If so, is it outline planning permission or detailed planning permission?
* What is the ground's condition like?
* Is the plot of land connected to sewerage, water and electricity?
* Are there septic tanks or wells on the land?
* What are the transport links like?
* What's the guide price?

## Land development feasibility study

You should also make sure you conduct a **feasibility study** into the plot of land you're looking to buy. This will give you an analytical and systematic insight into the potential of the land, and whether or not it's a worthwhile investment for your development.

### Land surveying

You need to conduct a **land survey** prior to conducting a development. Land surveying refers to mapping out the shape and boundaries of a plot of land. A qualified and registered surveyor will use specialist equipment to run tests on the land.

You'll need to factor hiring a land surveyor into your budget when you're buying land (or building on it). Make sure you check their reviews and accreditations to ensure you're choosing one that's right for you.

It's always recommended to get a **topographical survey** as it's the most extensive kind, uncovering details about natural and man-made features on the site.

Even if you don't want to get the most extensive type of survey, it's still really important to seek professional advice and make sure you uncover any hidden issues like flood risks, boundaries, rights of way and overhead power lines.

After all, it might look like the perfect plot, but you need to make sure you're covering all the bases before purchasing the land.

## Land mortgages

Just as with a property mortgage, you need a **land mortgage.** Unlike property mortgages, mortgages for land purchases can be trickier as there isn't a physical building to act as collateral if you fail to make the repayments.

Before applying for a land mortgage, make sure you consider:

Organise a professional survey and use the report to inform the lender about any legal issues, boundaries, electricity, sewerage and water, restrictions and zoning and whether it's close to a public highway.

It's also recommended to **talk to the local authorities or local planning officials** to find out about any nearby developments planned for the future. If a set of new homes, a motorway or a park is due to be built nearby in the near future, this could affect the value of your land or compromise your plans for the development.

You also need to think about the intended purpose of the land and how this might affect the cost of the land mortgage. For example, if the land doesn't have an existing structure to act as tangible collateral, lenders may be less confident as the proposed project has a lot more obstacles and potential issues that could delay the process. This would mean the mortgage would be more expensive.

The deposit amount would also vary depending on the size of land and type of mortgage. Remember - not all lenders offer land mortgages, so your choices are more limited than that of a normal property mortgage.

## Types of land mortgages

#### Agricultural mortgage

An agricultural mortgage is used for agricultural land like farms or other forms of land used for rural properties to keep animals and grow produce.

#### Commercial mortgage

This is for any type of commercial property development such as residential housing, shops, or any other commercial property type.

#### Self-build mortgage

A self build mortgage is often used for a self build house. This refers to the development of a new property, often for residential use where developers create their own home. It could also be used for commercial use on private company buildings on plots of land that are empty.

#### Woodland mortgage

A woodland mortgage is for rural land being used as a private sanctuary or long term investment.

#### Stamp Duty Land Tax

As well as your land mortgage, you might have to pay **stamp duty land tax (SDLT).** Stamp Duty is a tax payable to the government if you buy a residential property or piece of land **over £250,000.** (The rules will be different for Scotland and Wales).

However, if you qualify for first-time buyers relief, you won't have to pay any stamp duty on properties costing up to £425,000, and get a discounted rate on property purchases up to £625,000.

[You can find out more about Stamp Duty Land Tax here.](https://www.getagent.co.uk/blog/buying/stamp-duty)

#### Land auctions

Just as you can auction houses, you can buy land through land auctions. Land auctions can be a great opportunity to buy land at a cheaper price.

![land-2-getagent](//images.ctfassets.net/us6n8ous4bz0/7jsesmro9S3dlOwBSutl4x/ed879f8d57f770a37ce59c1a264c1adf/land-2-getagent.png)

## Planning permission for building on land

Before you buy land, make sure you know if planning permission has already been granted, and if so, what type of planning permission is in place. You'll need to talk to planning officials to make sure you're aware of the [planning permission status](https://www.getagent.co.uk/blog/research/planning-permission-breaches) of the land.

This can help you avoid any legal disputes, and ensure your decision to purchase the land is still a worthwhile investment.

When you're purchasing land, it may have outline or detailed planning permission.

#### Outline planning permission

**Outline planning permission** is (you guessed it) just the outline of your development plans, rather than the full picture. It's used to gain an initial understanding of whether or not the development is suitable for the land in the first place. The **reserved matters** (with all the details of the project) will be decided later.

#### Detailed planning permission

**Detailed planning permission,** otherwise known as a full planning application, includes all the details of your development including a full set of plans. This will inform the local authority's decision as to whether or not you can go ahead with the planning.

## Summary: Do your research!

Bottom line? When it comes to buying land, **you need to do your research.**

Think about where you want to purchase the land, what type of land you want, why you want to buy it, and how much it's going to cost (as well as the investment opportunities). If you want to make sure you're covering all the bases, make sure you're seeking professional advice as and when you can.

And if you're selling land or property, you can use our **[Estate Agent Comparison Tool](https://www.getagent.co.uk/vendor)** to find top-performing estate agents in your area. You'll get a tailored short list of estate agents to help you choose one that is best suited to your property (or land purchasing) needs.


If you're ready to build your own home or make a new investment, we're talking through how you can buy land in the UK.

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