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Leeds Building Society encourages longer tenancies
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Leeds Building Society has move to alter its mortgage criteria, in an attempt to encourage buy-to-let landlords to take on longer-term tenancies.
The lender has announced that it is to accept tenancy agreements for periods that suit both the landlord and the tenant, instead of stipulating a maximum timeframe. Previously, agreements were set at 12 months.
Long-term tenancies
A number of leading lenders have said that they will advocate longer-term tenancies, but many will only go to a maximum of three years. Leeds Building Society will be amongst a small group with no set length of agreement.
Richard Fearon, Chief Commercial Officer at Leeds, said, ‘this is a good example of our strategy of supporting borrowers who are not well served by the market. By demonstrating flexibility and not imposing a maximum tenancy period we are helping to support out buy-to-let borrowers.’[1]
Leeds Building Society encourages longer tenancies
A recent report from Shelter has revealed that 70% of tenants in the private rental sector would prefer a tenancy agreement of between three and five years. Many tenants have voiced their concern over insecurities with shorter-term arrangements.
David Hollingworth of L & C Mortgages observed, ‘more people are renting for longer but often find that they have little security of tenure, with tenancies often offered only as a six-to-twelve month option. Leeds’ removal of the maximum tenancy period will help increase choice for landlords and their tenants, both of whom may prefer a longer-term tenancy agreement to be in place.’[1]
[1] http://www.propertyreporter.co.uk/landlords/leeds-bs-announces-landlord-focussed-criteria-changes.html
