UK Landlord Forum / Life

Evening All,

I am looking for some advice if possible please regarding renting property owned by a limited company...

I have recently purchased my first property within a limited company, (i am the only director and 100% shareholder) but not a first time landlord as I have a couple of properties in my personal name.. (The limited company option was seen as the best for my circumstances for many reasons after discussions with my accountant and reading various articles online.. wont bore you with the details).

I was just looking for some knowledge on this forum to ensure I have all bases covered.

The main question is, with regards to paperwork (tenancy agreement etc) what is the differences for a limited company?

I understand all documentation has to be in the name of the company, as the company is the landlord... but is there any extra paperwork that needs to be used/added?

Thanks in advance for any response   

Not so much about additional paperwork (Im not referring to companies filing requirements/accounts etc - which I dont think is the object of your question) but you need to execute agreements in a certain way for validity.

Under the Companies Act 2006 s44 (2)(b)
A document is validly executed by a company if it is signed on behalf of the company
......by a director of the company in the presence of a witness who attests the signature.

Most folks (incl letting agents) fail to recognise that under Law of Property Act 1925 s54(2) there is usually (when the Landlord is a natural person) no need to sign a tenancy agreement that is no greater than 3 years as a Deed.  A simple contract suffices and so no need for a witness. 
The majority of tenancy agreements are signed as a Deed and witnessed regardless and so you may well not even recognise the difference, however if in the past you have (correctly) signed without a Deed and no witness you now need to get it done differently.

Other than that I can't think of anything specific assuming you have insurance, bank accounts, deposit protection etc all sorted out.

Best of luck

[Sorry an afterthought - if you do want to use a Deed (and there are minor reasons for doing so) or you have to use a Deed (e..g. Deed of Surrender) then the same execution requirements apply]

Thanks for the reply theangrylandlord..

Yes, my tenancy agreements have been signed in the past in the presence of a witness, as this was the formatting of the document.. I did not know the information you stated mind, so I have learned something new, thanks for that! 

So just to clarify the tenancy agreement for the limited company property, can be the same type (AST) as i usually use (when i let preoperty is my personal name).. just when it comes to the signatures section (and obviously any other mention of landlords details, where I would enter the company name), something like the below is needed:

Company Name (Landlord)
Company Registered Address (Landlords Address)
Directors Name (On behalf of 'company name')
Directors Signature
Date
Witness Name, Signature & Date

And obvisouly the usual tenants name, signature, date & witness details...

Regarding a Bank Account etc all this is sorted.