Being a landlord involves many financial and legal responsibilities. This article explains why landlords need a Lasting Power of Attorney and the problems that can arise without it.
If you have an accident or an illness that means you cannot make decisions, who would…
- Collect the rent / follow up non-payment?
- Pay bills?
- Arrange repairs?
- Communicate legally with tenants and letting agents?
- Arrange mortgages and insurance?
- Set-up, end and manage tenancy agreements?
- Enforce the tenancy and safeguard your property?
It is not safe to assume that your spouse or business partner will be able to legally deal with these things.
What happens if I don’t make a Lasting Power of Attorney?
You will have no access to solely owned bank accounts. Even joint bank accounts between married couples can be frozen to protect the incapacitated person from exploitation. They will also find it difficult to manage the day to day running of your business without the legal permission to act on your behalf.
If you lose mental capacity, your spouse or business partner will need to apply to the Court of Protection. This is to request permission to make financial decisions and act on your behalf. The Court of Protection is a specialist Court that looks after the welfare of vulnerable people.
This is a very expensive and time-consuming process. It can cost several thousands of pounds in Court, legal and medical fees with ongoing annual costs whilst the Court order is in place. The greatest problem for many is the time that this takes and the delays in being able to act.
Making a Lasting Power of Attorney avoids many of these issues by legally appointing somebody that you trust to act on your behalf.
It will give you peace of mind that your business and the people that depend upon you will be covered.
To book your free consultation visit www.trentwillsestates.co.uk or call Claudine Jackson on 0115 8461446