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Richlist

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Everything posted by Richlist

  1. Won't it be absolute magic if..... There is a vote. The vote is to leave the union. Then they find that they can't actually achieve it. I can't wait to see the SNP eat humble pie......they must be one of the most disliked political parties this side of the border. Why they are given so much air time on TV is beyond me. Surely they only mean something if you are a Scottish voter.
  2. I would think the biggest fear a landlord would have in Edinburgh is Nicola Sturgeon and her quest for Scottish Independance. I wouldn't want to be a landlord North of the border if independence is achieved......New currency or Euro, new taxes, new legislation, property prices will hit the floor.....an absolute nightmare.
  3. Your responsibilities as a leaseholder will be identified in your lease. I would be surprised if you were not responsible for maintenance costs. As an example normally maintenance costs are shared between ALL leaseholders......if the roof leaks costs are shared by all owners, it's the same if there is a problem with the foundations or pipework on the ground floor or if the chimney needs repointing or the facia/ soffit needs to be replaced etc. Rusty steel staircases usually need a coat of paint, not replacement.
  4. Grampa have you done a calculation comparing your Ltd company mortgage including all the costs vs a normal BTL mortgage including all the costs AND taking the different tax treatment into account ? My assumption is that your purchase through your Ltd company ...including the cost of setting up the company, the higher arrangement fees & higher interest rate etc is more profitable than buying through the normal BTL route. Haven't the Tories indicated they intend to lower corporation tax significantly (ultimately to 10%) with or without a Brexit deal........the future might look very bright ? My agent just told me they have done exactly the same as you by taking a Ltd company loan......I think it's the way to go.
  5. Capital growth since 2008 has been very good for me. Property that I bought in 2007/2008 has risen in value by at least 60%. That is considered poor if compared to London but it varies considerably across the country. Of course, my return is much greater than 60% because I didn't pay for the property in the first place.......I just paid a small deposit and borrowed the rest of the money. The rental income paid the mortgage payments and other outgoings. There is always capital growth with property.......it's the only thing that makes a property with a low yield an attractive proposition. Capital growth has allowed me to pull a 7 figure profit out of my rental business over the last few years. Its capital growth that produces property wealth, not rental income.
  6. I see positives and negatives........I think the POSITIVES win....... POSITIVES * You have funds already available. * You've agreed to buy at a good price. * Share of freehold included. * Attractive service charges. * Good yield. * Limited company purchase which provides tax advantages. * You are already working professionally in the industry......so have first hand, up to date knowledge. NEGATIVES * Legislation continues to impact profit......future Tory legislation is all negative for landlords. * Property price rises halted......potential fall in prices possible depending on Brexit outcome. * Labour may win the next General Election.....additional very bad news for landlords. But where else can you currently put your money to produce a better return in these low interest times ? If anyone knows......please let me know.
  7. I've never let on a tenancy agreement for more than 12 months. Personally I wouldn't want to let for a 3 year term.....here's my thoughts :- * What would happen if you have a 3 year term with no break clause and the tenant finds that they need to leave at say 7 months into the contract......happens all the time. * A 3 year contract without a break clause means you can't regain possession or increase the rent when you want to. * Some mortgages have restrictions on length of tenancy agreement.......as do many leases. * You may decide that the advantage of a long term tenant outweighs the disadvantages.......but surely you would want a financial incentive from the tenant........who can decide to leave any time. Could or would the tenant be prepared to pay the outstanding rent for the outstanding term if they left early. You'd probably want a guarantor......but who would sign up for a 3 year commitment ? Far to risky for me.
  8. A guarantor is way down the list of my priorities. My list is as follows: 1. A tenant that can tick all the boxes, meets all of my requirements, doesn't leave me with any doubts or questions, has impeccable references, works preferably in a profession, doesn't mean I'm taking on additional risk and very probably doesnt need rent guarantee insurance or a guarantor. These tenants are out there......I've been letting to them for 20 years. 2. Take a deposit. 3. My preference is RGI not a guarantor. Insurance is clean, easy, less labour intensive and puts all the risk onto the insurer. 4. If a tenant cannot tick all the boxes and doesn't qualify for RGI and I still want to let to them, then and only then will I ask for guarantor. A guarantor ......finding, administering, checking, signing, keeping on board etc etc, just seems like such a lot of really unnecessary work when there is an alternative......I give it a miss generally.
  9. In my opinion you don't need to take rent guarantee insurance and a home owning guarantor.......just one or the other.......unless you are exceptionally risk adverse. The majority of landlords do not take both. If you choose to go down the rent guarantee insurance route then the insurers will normally set the tenant selection criteria that you & they need to comply with. Therefore, there may be situations where a perfectly acceptable tenant applicant will fail that criteria. You may then still choose to let the property to them and will insist on them providing a guarantor.
  10. A guarantor that is a home owner is not just preferable it's essential otherwise if you find yourself in a situation where you need to enforce the guarantor agreement there may be no money or assets available for you to claim.
  11. Andy.......I disagree with your comments. 1. None of your tips apply specifically to Scotland or Edinburgh......they are general points that apply to anywhere. 2. A lettings agents DOES NOT necessarily give you the best advice to let out your property. The world is full of poor, ineffective, untrained, inexperienced, time wasters who call themselves lettings agents. Employing a lettings agents by recommendation is always preferable and a landlord should not assume that any agent will act in his or her best interests.
  12. Oh i agree 100% Mortitia, I always make it clear that tenants can change their supplier. In fact......it's law......landlords must permit tenants to change suppliers for all tenancies of 12 months or longer.
  13. An outgoing tenant changed their electricity supplier to a company I have never dealt with before.....and never heard of previously. Having dealt with them for a few months now they have turned out to be the worst supplier i have ever dealt with in 50 years.......and I've dealt with quite a lot of different suppliers Worst for.....communication, billing, ability to get hold of, accuracy of bills etc etc. Totally appalling in every respect. Who are they ?.......iSupplyEnergy..........recommend you avoid wherever possible.
  14. Richlist

    EPCs

    Let's face it......it's got to be a very, very poor property to achieve an F or a G. I'd probably go further to suggest that a property with an F or a G rating would not form part of a professional landlords portfolio. Most of my 30 + year old properties just about get a C rating .......they have no cavity wall insulation, minimal loft insulation, ancient electric storage heaters etc, etc. It makes me wonder what sort of features a property rated F or G has to have to get such a low rating.
  15. Richlist

    EPCs

    £45/£50 per EPC is the going rate in my part of Essex. Your agents probably just tried adding their bit for arranging things .......and felt able to justify it if you were overseas at the time and might have found it difficult or time consuming to arrange yourself.
  16. I agree with Melboy. Employing anyone by personal recommendation is far preferable to taking a stab in the dark. Forming good relations with others in the lettings business.......other landlords or lettings agents will usually provide strong recommendations that can be relied on. The chances of finding a recommendation on an internet forum is somewhat remote. Good luck
  17. Very poor English grammar exhibited in your post. When seeking an agent, i'd suggest it might be a good idea to check they have mastered the English language ! This sort of thing irritates me enormously.
  18. It is allwhite............it looks loverly......it's just got specks on it 😂
  19. No idea what it is. It certainly looks like paint.......what else could it possibly be ? If it's oil based it'll be more difficult to remove than water based (emulsion) paint. Ask the tenant to come back and clean it or tell them they'll be charged for the work. To remove I'd start by rubbing with white spirit then try meths and if they don't work then a very mild abrasive like kitchen cleaner (Jif). If that fails get someone with fingernails to do it for you and charge the bill to the tenant. Edit...... 1. Just remembered that sometimes a good quality rubber/eraser can work at getting paint spots off....might be worth a try. 2. A sharp plastic scraper/ spatula might work instead of a fingernail. Let us know how you get on please.
  20. You can pick up snippets of information and some good advice from internet forums......when you have specific questions about a particular problem but your situation is probably best dealt with by an expert. I would suggest using someone like Paul Shamplina of Landlord Action. There are other firms who will handle this for you....I have no connection with any of them. Search for Landlord Action for details of costs and services offered.
  21. On face value it doesn't look good BUT I'd want to see the detail before making a judgement. I've sold property to sitting tenants and given them a 'small' discount on market value. Surely it all depends on the details which are likely to be years away. Do you really believe that the Labour party can win an election with Cornyn & McDonald (currently on 25% in the polls) running the show ?The Tories (on 33%) will make a non aggression pact with the Brexit Party (on15%) and sweep the floor. Labour don't stand a chance.......for years and years of ever winning a general election. Rest easy, no need to panic.
  22. The short answer is no, ...there are very few ways of avoiding CGT. The few ways that do exist don't look particularly attractive....eg * You can die......then you can avoid CGT......but then your estate might get hit by IHT. * There are a few countries around the world that you can move to, permanantly, and avoid CGT......none of them look attractive locations. The annual personal allowances are generous plus you can offset buying and selling costs and any capital expenditure during your period of ownership. After that its either 18% or 28% depending on your marginal tax rate. Pay up, the country needs your tax revenues to pay for schools, NHS and defence etc. The only good bit about CGT is that currently you don't need to pay it until between 10 - 22 months after the sale completes. Because of this delay in payment of tax due, if the proceeds are invested wisely, it's my experience that a large proportion of the tax bill can be recovered from income.
  23. If you're going to employ a lettings agent to fully manage a property (as opposed to a lettings agents that provides a find service only) you are well advised to find an agent through recommendation. There are so many poor agents around who will promise everything & deliver very little, have little knowledge or experience and will disappoint you. Why do you think online agents are any better ?
  24. The short answer is that if you are out of the country for a month you aren't gonna be around to do anything worthwhile and you should probably let your agents deal with it. When we receive a months notice we do the following: * Issue a moving out letter that details everything a tenant should do when they vacate. * Arrange a preliminary viewing and discuss what the tenant needs to do when they vacate. Then on moving day.... * take meter readings. * Contact utilities. * Carry out final inspection for deposit return. * Get forwarding address. * Obtain details of energy supplier(s) * Ensure we get all keys and instruction books returned. * Refund deposit based on final inspection. *Ensure they have removed all rubbish, personal be!ongings, locked doors and windows and turned everything off.
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