What Is A Home Information Pack?

It is a set of documents providing important information about the property for sale. It is a legal requirement that all sellers of residential properties for sale must have a HIP in place prior to marketing the property.

Why Do We Need Them?

The aim is to reduce the stress involved in the house buying and selling process by providing key documents at the time the property is put on the market.

As part of the regulations, all estate agents are required to belong to an approved customer redress scheme, meaning peace of mind for customers, and better standards of service.                         What Is Included in a Home Information Pack?

Required Documents:
1. Index
2. Sale Statements
3. Evidence of Title and Title Plan
4. Energy Performance Certificate (EPC)
5. Property Information Questionnaire (PIQ)
6. Searches
7. Copy of the lease (if leasehold)

Items 1-5 must be in the HIP before marketing can commence, items 6 & 7 must be ordered and then added within 28 days.

Who Are The Parties Involved In Producing a Home Information Pack?

The Agent – explains to the vendor about the legal requirements for a HIP and what it consists of.

The Vendor – purchases the HIP and provides some of the required documents

The HIP Provider – produces the HIP and employs people to collate various required information. Once the information is collated, provides copies of the HIP.

Domestic Energy Assessors (DEA) – produces the Energy Performance Certificate

What is an Energy Performance Certificate (EPC)?

This provides an energy efficiency rating for a property, and also shows the environmental impact of the building, by indicating its carbon dioxide emissions.



What is a Property Information Questionnaire (PIQ)?

This is a detailed checklist providing important information about the property. The seller will complete this and it will be included in the HIP prior to marketing the property.

Who Can Help Me Get a Home Information Pack?

Cranford Property Services consultants will be able to arrange for the Home Information Pack to be produced for you by our provider. They will handle all aspects of the legalities involved in getting your property to the point of marketing, in the shortest possible time.

Please ask for further information about how we can do this for you, and the fees involved, or any further clarification you need.

Alternatively you can obtain a HIP yourself, or if you already have a HIP this can be transferred, subject to verification.

The first step to finding the property that is right for you is for us to establish your wants and needs

We will only take you to see properties that meet your requirements, and will welcome your feedback on the ones you view.

Once you have found the perfect home we will advise you of the next steps, and keep you informed all the way through to completion – when the property will be legally yours!

It is important that you discuss this with your landlord or agent first and discuss your choices of colour with them. You must remember that any painting or redecorating you do yourself must be of a good standard.

As a general rule the property must be in the same condition when you move out as it was when you moved in. Part of your legal obligation as a tenant in looking after the property is to act in a ‘tenant like manner’, which means to look after it by keeping it clean and tidy, making sure it is well ventilated, and reporting any maintenance issues to your landlord or agent as soon as possible. Make sure you read your tenancy agreement so that you know exactly what your obligations are.

Normally the landlord will pay for the cost of any maintenance, but you should be aware that you will be responsible for the cost if the work is necessary because of something you have done or failed to do.

If you rent your home through Cranfords Property Services, you will be given an inventory to document the condition of the property at the start of the tenancy as well as a Guide to Fair Wear and Tear so that you know what needs to be done whilst you live there. These are important documents, so make sure you keep them in a safe place and refer to them when necessary.

A deposit is required prior to occupation. This deposit will be protected in accordance with Tenancy Deposit Protection legislation. The deposit is held to cover any breakages, damage or other tenant liabilities.

As business systems and practices evolve so do we and, by embracing change and incorporating new ideas we will maintain and will benefit our customers

Comprehensive Buildings and Contents Insurance

If you let out a property in the UK (including your home), tax is payable on the rental income you receive and you are deemed to be a Landlord.

Tax for UK Resident and Non-Resident Landlords

If you let out a property in the UK (including your home), tax is payable on the rental income you receive and you are deemed to be a Landlord. Landlords will need to declare this income on their Self Assessment Tax Return. If you don’t already complete a Tax Return you are legally required to notify HM Revenue and Customs (HMRC) of any liability you may have. Remember – if the property you are letting is jointly owned you should only be taxable on a proportion of the income you receive but both parties will need to complete a Tax Return.

HMRC legislation states that you will need to keep records of your income and expenses relating to the rental property for at least six years to support your Tax Returns.

Cranford Property Services will provide you with copies of any maintenance or work invoices undertaken on your behalf. We can also provide an annual statement of your account on request.

Tax for Non – Resident Landlords

HMRC legislation requires UK letting agents to deduct income tax at the current basic rate from a Landlords net rental income i.e. after any deductions for maintenance invoices etc. The withheld tax is then passed to HMRC. You can, however, apply to HMRC to receive your rental income free of any tax deductions by completing an approval form.

The Guaranteed Rent scheme  works in a slightly different way. If a Landlord is guaranteed a value of £5,200 per annum or less then there is no need to apply for approval to receive your rental income without tax deduction. If there are two parties to the Platinum contract, that value is doubled to £10,400.

If it is necessary for you to apply to HMRC for approval, Cranford Property Services can provide you with an application form or alternatively you can download the form directly from the HMRC website using the link below:
http://www.hmrc.gov.uk/cnr/nrl1.pdf

Notes are available to assist you completing this form on the link below:
http://www.hmrc.gov.uk/cnr/nrl1_notes_bw.pdf

Once authorisation has been received from HMRC then we can pay rental income without deduction of tax at source.

If tax has been deducted from your rental income you will receive a certificate by 5th July following the end of the relevant tax year which details the total tax deducted from you during the year.

Further information

Further information on the taxation of rental income for both UK and Non Resident Landlords is available by following the following links:

http://www.hmrc.gov.uk/index.htm
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/index.htm

The content of this page is for general guidance only. It is based on current legislation at the time of publication, which may have been subject to change. Specific professional advice should be sought based on your personal circumstances. Cranford Property Services accepts no responsibility for any actions taken or refrained from on the basis of this information

Gas Safety (Installations and Use)

Regulations 1994 (amended 1996 and 1998). When you rent out your property, it is your responsibility to ensure that any gas appliances in the property and gas installation pipe work are safe for the use of the tenant. In order to ensure this, your tenant must be furnished with a record showing that a gas safety check has been carried out. The purpose of this is to safeguard against the risk of carbon monoxide poisoning, and to ensure the wellbeing of the tenant and safety of the property.

Electrical Equipment

If you decide to leave some electrical equipment for the use of the tenant when you let your property, you must ensure it is safe and of no risk or injury to human or animal. This means that manufacturers have to insert a CE marking on packaging to confirm the appliance has been tested and is safe under the regulations. Once the appliance is 12 months old, the easiest way to ensure the safety of it, is to have a qualified NICEIC registered electrician perform a portable appliance test. This is renewable annually and can also be arranged by Northwood

Smoke Alarms

If you are renting out a property in Scotland, you must ensure that you have a smoke alarm in the property before the tenant moves in. In England and Wales, the Building Regulations require all properties built after June 1992 to have a mains connected smoke alarm. Older properties should have battery operated smoke alarms.

Money Laundering Regulation

Before we let your property, it is important that we know who you are and that you are the legal owner of the property. This allows us to comply with the Money Laundering Regulations. At the time of completing your instruction form, formally appointing us as your letting agent, you will be asked to provide two forms of identification, one of which needs to be a new style driving licence or passport showing your photograph and the other a document showing your address.

Consent to Let

If you have a mortgage you must obtain consent from your mortgage lender. If your interest in the property is leasehold, your lease may require you to obtain consent from your landlord prior to sub letting.