Paragon Plus

Fulfilling The Wish List Of Every Landlord

Following a major survey of their investment borrowers, Paragon Mortgages has announced a range of specialist services to support investors in residential property.

These services are offered as Paragon Plus and are aimed at fulfilling the wish list of both professional landlords and newer Buy to Let landlords who are still building their portfolios.

 The survey has also revealed some serious deficiencies in landlords' insurance cover and their approach to general risk management. The new Paragon Plus service includes credit checks, tenant referencing, rental income guarantee, insurance, home emergency assistance and legal and tax advice helplines. It is all available online, by fax, phone or by post.

Online users of Paragon Plus also have access to a legal Hot Topics page and a discussion forum. The credit and referencing services include a simple credit check, or they can go a stage further and check out employment histories over three years and tenant applicants' records at previous addresses.

There is also a Guaranteed Reference. With this, a clear recommendation is made about the suitability of the tenant. This is linked to a rental income guarantee for the first six months of a tenancy. Currently, less than a quarter of all professional landlords carries out a thorough review of a tenant's ability to service a commitment to rent. To repair the deficiencies in insurance cover and assist in the general approach to risk management, the Paragon Plus landlords' property policy is tailored to cover the particular liabilities that can affect residential investment landlords.

 For the landlord renting in the course of business, the insurance should cover areas such as liability towards cleaners, maintenance and repair personnel, as well as casual visitors, including potential tenants. Cover is also needed when investment property is empty. The Paragon survey showed that it is often not understood that typical household policies can be inadequate for the Buy to Let investor.

 According to the survey, over half of all landlords rely on ordinary household insurance policies to protect their investment. "Numerous risks that specifically effect both landlords and tenants may not be covered properly through a regular household policy, if these risks are covered at all," explained John Heron, Managing Director of Paragon Mortgages. "Ironically, getting it right by choosing a buildings or contents policy specifically designed for rental property will often cost less."

 Coupled to insurance peace of mind is the Emergency Home Assistance service. A special feature of this is that it can be activated by the tenant should the need arise. This cover includes call out charges and labour and materials up to £500. There is no excess. It is designed for the full range of emergencies including problems with heating and cooking facilities, the roof, the guttering and the security of the property - and lost keys with which to get back into the building.

The Legal and Tax Helpline is provided for Paragon by the largest network of solicitors in the UK. A call for advice will be returned by the end of the next working day. It will come from the nearest solicitor in the network, experienced in landlord and tenant law. The first half-hour consultation is free. Costs for any further work required on the same case will be clearly stated.

Online to Paragon, both the Hot Topic page and the discussion forum are designed to help landlords keep up-to-date and provide a system for passing on information, ideas, problems and solutions. The Paragon Mortgages survey into the wish list of investment borrowers also showed that as many as 90% of them have internet access and 50% have actually traded over the net. Only 20% actively dislike the concept of trading electronically. Commented John Heron: "As a major innovator in the Buy to Let market, we have to be very well informed about requirements for property professionals and for newcomers to Buy to Let. This special expertise in residential investment has enabled us to introduce a valuable package of services to help landlords manage their risks, especially as they are growing their property portfolios."

The Paragon survey has also revealed that eight out of ten landlords expect to increase their portfolios by as much as 100% within the next five years. The Paragon Plus service is available as a ready-made package for investors with up to two properties. For the property professional, the service is a la carte with discounts to 25% available.