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Jo C.
Jo C., Barrister
Category: Law
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Experience:  Over 5 years in practice
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I am a UK citizen living in Portugal. I rent out one

Customer Question

Hi
I am a UK citizen living in Portugal. I rent out one property in London. I have fallen out with the estate agent who found my current tenants.
I am drafting a new contract between my tenants and myself with no reference to the estate agent.
In the old contract there is a clause that says this.
3.7 Where the landlord’s normal place of abode is not in the United Kingdom he agrees to nominate a representative or appoint an agent to whom the rent due under this agreement shall be paid. If the landlord fails to appoint such a representative or agent the landlord agrees that the tenant will be entitled to deduct, and hold for payment to the Inland Revenue, basic rate tax from the rent as may be required by the Finance Act 1995 or subsequent similar legislation as it relates to non UK resident landlords.
My bank account is Portuguese and the tenants are having misgivings about paying their rent into my Portuguese bank account. Simply because their bank, as a formality told them it could be viewed as money laundering or tax avoidance. They are insisting that I must have the rent paid to an agent who has a UK bank account. My brother is my agent for the purpose of being available if I'm not for any reason etc. He lives in London and has a UK bank account but I really don't see any practical purpose in having my rent paid to him and then him transferring it to me. He doesn't want to be bothered unless absolutely necessary.
Question. Does the clause have to be included in the new contract or can I omit it? I want the tenants to pay their rent directly to my Portuguese bank account.
Submitted: 6 months ago.
Category: Law
Expert:  Ash replied 6 months ago.

Hello my name is ***** ***** I will help you.

Do you have a UK address named on the tenancy agreement for the Landlord please?
Alex

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