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landlord insurance

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  1. Transferring a £250k property from daughter to Ltd Co would attract £10k stamp duty. New house purchase then attracts £11.5k stamp duty. So thats £21.5k total instead of £24.4k if everything left as it is. Still a saving but not as attactive as before, especially as you have to factor in the company set up costs and inherent administrative tasks and responsibilities of running a Ltd Co.
  2. The diffence in stamp duty suggests your daughter is looking at a £430k property and you are comparing first time buyer stamp duty (£6.5k) and second home stamp duty (£24.4k). Is this right? Basically your daughter can no longer get first time buyer stamp duty. Even if she sells her existing property, she would have to pay standard stamp duty (£11.5k based on figures above). Her fiance could go it alone but obviously that rules out your daughter's income on the mortgage and she would have no interest in the property. An £18k saving though (assuming fiance is a FTB). Transferring flat to Ltd Co (as above) is an option but be aware that Stamp Duty would be payable on market value of the flat and at the higher rate. Stamp duty for the new purchase would then be £11.5k (at standard rate) saving £12.9k on the second home rate. Above is only from what I have seen from investigating a similar issue with a friend, it may or may not be accurate but might point you in the right direction. I would suggest speaking with an accountant to help you before making any decisions.
  3. Your building insurer is already aware of the incident so just contact them to tell them of the tenant's accusations so they can handle them for you. IF it is causing a health problem, you should have alternative accomodation cover and IF you are liable for damage to the tenant's property you should have property owners liability cover. Both of these however are big IFS and (as above comments mention) are highly unlikely. The tenant would need to provide proof of his/her health claims and would also have to officially hold you liable. I would just give everything to your insurer and tell your tenant that it is out of your hands as your insurance company and their solicitors are dealing with it.
  4. The buildings insurance should hopefully have alternative accomodation cover included. I would contact the insurer in question to obtain assistance.
  5. Insuring a flat separately is not ideal and I would always recommend insuring the block as a whole where at all possible. Not only does it make claims a lot easier to be handled (imagine 4 different insurers trying to get together to arrange the rebuilding or repair of a property that has had a large incident), it will probably result in a lower premium to pay each. There are specialists that can help for those where this is not possible. Try Ashburnham Insurance and their Unoccupied Property Insurance options.
  6. I'm sure I've come across rent free lease agreements, however I cannot disagree with what seems to be a good arguement - maybe this could be solved with a £1p/m payment??? I do agree that a qualified legal opinion should be the only advice you take.
  7. You don't have to take rent to have a lease agreement. This lease agreement will simply say that the tenant agrees to pay you £0 per month. I've seen this many times where landlords let to family/friends. It makes it official without the rent payments making them able to obtain landlord insurance in the same way as everyone else.
  8. Wow kerbut! That's one hell of a good quote. Even if the policy was rubbish and was just giving you fire cover that would be a good price but seems you have done your homework!
  9. I know your tenant's haven't moved in yet, but surely you already have buildings insurance in place if you own the property? Normally the first call should be to them to see if they can amend the policy to show it as let to tenants from 5th Feb. If it is a standard home insurance then this may not be possible but still worth a try.
  10. I'm pretty sure most people will not have a problem with an insurer until it comes to the time of making a claim. Even then, each and every claim is different and cover is always in black and white before an incident, it is usually after the event that brings it too light that there might be a gap in cover. Always best to shop around for a few options at renewal just to check the price is "the going rate". I think the most important thing though is to compare cover. Checking things like malicious damage by tenant cover, loss of rent cover, property owners liability, etc. is probably more important than price. It is known that a few of the insurers that guarantee to price match are unable to provide like for like cover so always compare what you are getting for your money so you can make the best decision.
  11. Certainly pays to shop around! Incidentally, do you know who the insurer is behind the CIA quote you received?
  12. As far as insurance goes - most landlord insurers will requirew you to have a minimum of a 6 month lease agreement in force. No obvious benefit to having 12 months other than the guaranteed rental income.
  13. Please remember that although this is your son's friend, treat everything as if it is a normal tenant. In terms of landlords buildings insurance, you may be required to do checks on the property and have a written record of them. In cases of friends/family renting these things can get overlooked but the insurance company may want to see evidence of them at a time of a claim.
  14. It seems you have the "main" insurances covered! As with all insurance, you will only NEED it if you NEED to claim. If there is a flood/fire/etc then you stand to lose the contents within the property. A landlords contents only policy may only cost £50 a year for example but there may also be a £100 excess on a claim so taking this into account you should be able to decide whether it is worth taking out the cover or just taking a risk and lumping the costs if the worst happens (obvious depends on the total value of all your contents really).
  15. I completely agree with everything you say! My comment was just aimed at the fact you said that you never insure contents and just get an inventory and take it off the tenant's deposit if they damage it. An inexperienced landlord may possibly have seen that comment as a reason not to insure their contents and I was merely pointing out a few basic reasons why it should at least be considered. Your new comment has now brought to the attention many more reasons to take into account when considering landlords contents insurance which should be useful to anyone reading.
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