Applicant Guide. A simple guide to help you through the offer process. savills.co.uk

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1 Applicant Guide ~ A simple guide to help you through the offer process savills.co.uk

2 ~ MAKING AN OFFER ~ In the event your offer is accepted, you will need to pay a Pre Tenancy Application Charge equivalent to the value of one week s rent or 600 inclusive of VAT. You will receive a receipt for this and the sum will be deducted from the total monies required for you to move into the property. Please note that the Pre Tenancy Application Charge does not constitute a holding deposit. The property may continue to be marketed until such time as we are in receipt of references (approved by the landlord), a signed tenancy agreement from all parties and cleared funds from you. If your references are unsatisfactory, a minimum charge of 300 inclusive of VAT per person will be deducted from the Pre Tenancy Application Charge to cover any reasonable expenses incurred by us. If your application form includes misleading information that cannot be construed as an error, or if you withdraw your application, the Pre Tenancy Application Charge is non-refundable. In the event that you subsequently decline to complete the tenancy for any reason, and so do not move into the property on the intended start date, the landlord reserves the right to withdraw the offer of a tenancy of the property, and all reasonable expenses incurred will be deducted from your Pre Tenancy Application Charge. NB In the event that the landlord should withdraw from the tenancy for any other reason, your Pre Tenancy Application Charge will be refunded to you in full. If payment is made by credit card the card charge is non-refundable. ~ REFERENCING ~ The tenancy is subject to references and each applicant will need to pay 36 (including VAT) for the reference check and we will ask you for a passport or UK driving licence (bearing a photograph) and a copy of a utility or credit card bill or bank statement showing your existing address and bearing your name. We reserve the right to ask you for any other identification documentation that is deemed necessary. Any adult over 18 residing at the premises (with some exceptions, such as nannies/au pairs), will be named on the tenancy agreement as tenants and will therefore be required to complete a tenancy referencing application form to be processed by a referencing agency. The reference company will obtain references from employers, any previous landlord (if applicable) and an accountant (if applicable), and will undertake a credit check. The referencing agency may require you to provide a Guarantor who will also need to follow the same referencing procedure, which will incur a further charge. Please note that a Guarantor must be a UK resident. NB as a guide the calculation used by the referencing company is as follows: Affordability is based upon monthly rent x 30. E.g. 2,000 pcm rent x 30 = 60,000. Applicant therefore requires a minimum income of 60,000 pa. Affordability of a Guarantor is based upon the monthly rent x 36. E.g. 2,000 pcm rent x 36 = 72,000. A Guarantor would therefore require a minimum income of 72,000 pa to be able to stand as Guarantor for a tenancy with a monthly rental of 2,000. ~ TENANCY AGREEMENT ~ The tenancy is always subject to contract until completed and dated, when it becomes binding on both parties and Guarantors (if applicable). The tenancy agreement sets out the terms of the tenancy and the obligations of both the landlord and the tenant(s). Please ensure that any separately agreed terms have been included in your tenancy agreement. If there is anything you do not understand, you should seek independent advice from a solicitor or a Citizens Advice Bureau before agreeing to the tenancy. In order to prepare the tenancy agreement, you will be charged 246 inclusive of VAT as a contribution towards the cost. Draft tenancy agreements are available upon request.

3 ~ THE DEPOSIT ~ A deposit, usually equivalent of six to eight weeks rent, will be required before the tenancy commences. If the landlord has agreed to allow you to keep a pet, we may require a larger deposit and associated clauses regarding damage and cleaning will be included in your tenancy agreement. Savills will generally hold the deposit as stakeholder. If the tenancy agreement is an Assured Shorthold Tenancy agreement, then the deposit will be held in accordance with a Tenancy Deposit Scheme. Savills is a member of The Dispute Service Ltd. The deposit is held against any damage, arrears of rent or other breach of the terms of the tenancy. It will be held in our client account on your behalf and will not be released until the property has been vacated and the inventory check-out agreed by all parties. No deductions can be made from the deposit without written consent from both you and the landlord. Any interest earned on the deposit shall be retained by Savills to cover bank administrative costs. There may be occasions when the Landlord will hold the deposit due to having their own membership with one of the schemes. ~ COMMENCEMENT FUNDS ~ Before the tenancy can commence, Savills will require the following cleared funds: First rental period in advance Tenancy agreement paperwork charge Deposit Referencing charge/s Please ensure cleared funds are received at least 48 hours prior to completing the tenancy agreement, or such earlier date as we may agree with you. ~ INVENTORY AND SCHEDULE OF CONDITION ~ An inventory and schedule of condition of the property will be prepared before the start of the tenancy. In most cases, an independent inventory clerk will check you into the property prior to any keys being handed over, and will give you a detailed report of the contents and condition of the property. You will be asked to sign it as confirmation of the property s contents and condition as it will be used to assess the comparative condition of the property at the end of your tenancy. We recommend that you are present during both check-in and check-out. Should all of the tenants on the tenancy agreement not be available to sign the inventory report, the signing tenant will sign on behalf of all the tenants and the inventory report will be binding to all of the tenants. The landlord pays for the preparation of the inventory/schedule of condition and for the check-in report. You will be responsible for paying the inventory check-out fee. Charges vary according to which inventory clerk Savills or the landlord has instructed, but are applied on a sliding scale depending on the number of bedrooms the property has and whether or not it is furnished. Please note that Savills may charge a fee for the time taken to arrange appointments etc. The range of charges for check outs vary across the country and depend upon the size of the property and whether it is furnished or unfurnished. Example: minimum charge being 69 (inc VAT) for a one bedroom flat and maximum of 582 (inc VAT) for a 6 bedroom London house. If you cancel or alter a check in or check out appointment with short notice you may be charged 60 (inc VAT).

4 ~ CONTENTS INSURANCE ~ The landlord is responsible for the insurance of the property and the landlord s contents as detailed in the inventory. Tenants are responsible for arranging contents insurance for their own possessions. To cover all insurable risks we must emphasise that the landlords policy does not cover the tenants possessions under any circumstances or for re-housing the tenant in the event of the property becoming uninhabitable. It would be prudent to consider obtaining accidental damage cover for your possessions. SPF Insurance Services can provide you with a free quotation for Tenants insurance. Please call Andrew Boateng on +44 (0) or for further details. ~ GREEN DEAL PLAN (IF ANY) ~ If the premises has a Green Deal plan, as the prospective electricity bill payer you will be required to pay the instalments under the plan. The obligations under the Green Deal Plan remain with the premises. Savills will advise you if there is a Green Deal in place. ~ RENTAL PAYMENTS ~ All rent is payable in advance by standing order. The payment date must be three days before the rent due date in order to allow funds to clear. A charge of 30 inclusive of VAT will be made to cover bank and administrative charges on each occasion of any unpaid/late rent occuring. The Landlord can claim interest payments on any late rent received or non payment of rent, which would be a cost to you. VAT Charges have been quoted inclusive of VAT at the rate of 20%. In the event the rate is increased or decreased the prevailing rate at the time payment is due will be the rate we would defer to. ~ RENEWALS / EXTENSIONS ~ Savills charges the tenant 120 (inc VAT) towards the cost of preparing the documentation for each renewal, extension or any amendment of the tenancy. ~ CHANGE OF SHARER ~ In the event that you wish to change a sharer (subject to contract) during the tenancy the new sharer will be subject to referencing and the tenancy agreement will need to be updated. The charge for change of one sharer to include referencing and tenancy paperwork is 282 (inc VAT). ~ CALL OUT SERVICES ~ Where the actions of the tenant results in the agent (or nominated contractor) attending the property, time to remedy the situation is charged at the prevailing rate to a maximum of 240 per hour (inc VAT) plus any actual costs incurred. ~ LAST MINUTE CANCELLATION OF PRE ARRANGED VISITS ~ In the event that the tenant cancels a prearranged property visit a charge of 120 (inc VAT) per visit applies. ~ HOURLY RATE ~ For Landlord or Landlords Agent replacing any damaged or broken items and reinstating any fixtures and fittings to its original position as reflected in the inventory check in.

5 ~ UNPAID/RETURNED PAYMENTS ~ Should any payment due from you be either unpaid or returned there is a charge of 30 (inc VAT) per payment. In addition interest on any unpaid rent or late rent is due at 4% above the base rate of Barclays Bank PLC. ~ FORMAL COMPLAINT PROCEDURE ~ If you are dissatisfied or feel the need to complain, please contact the Lettings Manager of the office you are dealing with in the first instance. In the event they cannot resolve your complaint Savills conduct a formal complaints procedure. Please contact Theresa Wallace, Lettings Customer Services, 1 Church Road, Richmond upon Thames TW9 2QE or Disclaimer At the time of printing Savills believes the information contained in this guide to be current and up-to-date. We do not accept any responsibility for any resulting actions from parties acting upon the information contained in this guide. This guide is not a legal document and is for your assistance only. It does not supersede the terms of your tenancy agreement. Why Should A Tenant Seek Out An ARLA Licensed Agent We strive to deliver professional excellence and aim to ensure all of our lettings team are licensed ARLA agents. ARLA is the industry s regulatory body, ensuring the highest level of ethical and professional practice from its membership. ARLA members are required to work within a robust Code of Practice, which covers the key stages in letting and managing a property. W There are comprehensive r memberships Byelaws which r include compliance r with such issues as handling r and accounting y for Clients pr money; the mandatory r ARLA Client Money Protection r requir Bonding r roperty r r compr Scheme; Professional Indemnity Insurance; Dealing with Complaints and Disciplinary Procedures. For you, this means your Savills team will be fully briefed on all the latest legal, Pr financial and compliance r issues affecting the lettings market. rocedur be fully briefed on all the latest legal, financial and complian Client money protection (CMP) provided by ARLA Independent redress provided by OS:P savills.co.uk 01/16

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