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Corporate Let Agreement: Colchester Borough Homes

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Colchester Borough Homes has two housing schemes to help benefit both private landlords and tenants looking for accommodation within Colchester; the HomeStep and private sector leasing schemes.

The schemes on offer by Colchester Borough Homes Landlords are summarised below.

Private Sector Leasing Scheme

The Private Sector Leasing Scheme allows landlords to lease their property, via a Corporate Let Agreement, to Colchester Borough Council for a period of 3 – 5 years. You can learn more about Corporate Let Agreements by reading our previous article AST & Corporate Let Agreements – Do you know the difference?

Colchester Borough Council will then sub-let the property and fully manage the tenancy for you.

In return, the Council will pay the Landlord the full rent regardless of whether the property is tenanted or vacant; this will be paid monthly in advance. It is also guaranteed that at the end of the Corporate Let Agreement, the property will be returned in the same condition it was initially in.

If you are planning to take advantage of this scheme landlords must ensure they obtain the correct Buy to Let mortgage that allows corporate let agreements. We would always refer a Corporate Let Agreement to a mortgage lender ahead of a mortgage application for the assurance the lender would accept this. In this instance, I have referred the Colchester Borough Homes Landlord Agreement to several buy-to-let mortgage lenders, who have confirmed this is an arrangement they could consider; however, ultimately, it is down to a lender’s solicitor to ensure it is acceptable.

HomeStep Scheme

The HomeStep scheme is another initiative on offer by Colchester Borough Council. The aim is to help landlords source and vet prospective tenants from their pool of approved and credit-checked tenants.

The main difference between the HomeStep Scheme and the Private Sector Leasing Scheme is that the property is let direct to the tenant via a 12-month AST, rather than letting via a Corporate Let Agreement to Colchester Borough Council who then subsequently sub-let the property; this means you maintain that direct tenant-landlord relationship.

In return for granting a 12-month AST to one of Colchester Borough Homes’ approved tenants, the Council will provide the following benefits:

  • One month’s rent is directly paid to you in advance as a landlord or to your chosen letting agent.
  • Five weeks damage deposit.

 

You will also get the choice between two of the following incentives:

  • A goodwill payment worth up to £750 & if renewed after the first year for a further 12 months, another goodwill payment worth up to £375 could be made (subject to terms).
  • Landlord Rent & Legal Insurance and/or Tenants Liability Insurance paid by Colchester Borough Homes for the first 2 years (subject to terms).

 

If you would like to know more about becoming a Colchester Borough Council Landlord, the potential benefits and how to enquire about the Private Sector Leasing & HomeStep Schemes, please click on the following link Calling Private Landlords! Do you have private property to rent in Colchester? (cbhomes.org.uk)

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