Carryon Regardless

42 minutes ago, Richlist said:

Well as an Agent I do hope you are charging it the appropriate fee for using your drive. 😅

RL you're assuming it's minted, but that was the polar bear.

I didn't realise I would be penalised on remortgage in 2008. It was heavy, and if I bad waited e few months would have passed it. Super doh.

My guess is that in 3 years we will be at approx 4 - 4.5% base. Beyond is too much for my crystal ball, and in truth I feel a new world order may be looming. But I am a witch / landlord so feel free to come to my hanging.

I tend to agree, with the majority of my tenants that's the case anyway.

Even if local comparison rents went much higher, the money just 'aint there. By squeezing them too hard all I would do is cause them to default. Once that starts they rarely make it back.

Also from today Wales repossessions require 6 months notice, as a start of the process. So not easy to replace them either.

So there is now bad news about Penny M, how accurate would be interesting. I hope it's just dirty lies as part of the Tory dirty tricks.

Aside from fair rent tribunals,

from today Wales introduce a style of rent cap,

how long before England does similar?

I read an article that says rent inflation is more in the last year than the total of the previous 13, due to a lack of rental properties.

Trouble is I trust the media about as much as politicians.

I've expressed my opinion of Sunak, not high,

Truss is the Tory equivalent of Diane Abbott, although she would have to wear 2 right shoes. But similar intellectual capacity.

I like what Mel informed us of, some I knew, but I would say that.

Assuming Penny M gets to the final round I'm glad it isn't only up to the Tory Westminster elite to decide.

15 minutes ago, kanrent said:

But she hasn't got a degree in history 

She isn't an ex / failed lawyer either, does this make her unsuitable?

I think I'm with Mel, I wouldn't want to vote for Sunak as our countries figurehead at the next election. Aside from Gove he is the most alien like politician out there. I mean of another planet.

Wiki can be useful.

https://en.wikipedia.org/wiki/Penny_Mordaunt

It can even make me seem enlightened.

But are we really watching a pantomime, where promises and favour exchanges will see the most influential get the job anyway? As opposed to the best person for the country.

I'm disappointed as I hoped David Davies had been discreetly gearing himself up for the leadership challenge.

I don't know much of Mordaunt, but I like what I've heard. Maybe she has some Thatcher qualities.

Believes in Brexit, a change from the Eton mold.

Look after the Penny and the MP's who've nicked our pounds might look better at themselves.

The last sentence still has me chuckling. As I have visions of travelling the last 40 miles of my ingoing journey at 20mph. The WRA are deciding on that today.

Maybe this is what our Gov't's should realise about policy making, slow things down so they might analyse the effects of their changes better.

I'm not sure any housing legislation will be any more than a short deferral though, since it isn't the PM that designs it and pushes it. Other Tory Socialist heroes can continue to do that.

D'ya think Sunak can save the economy that he has been responsible for? Who ever gets the flat at No10 I don't see they can get away with giving us more money via tax cuts, Sunak has spent it.

To some extent I can understand the payment security.

The house just sold was to an investor, should've been easy. His mortgage company rejected his application as works were ongoing. The problem was we had agreed a reduced value so he could finish the works (that to save me 4 hours drive each day). It could've meant I had lost other buyers and some weeks progress to complete the works while his application went through.

It meant some trust on both sides. He gave me a cash in hand deposit, I allowed his 'chap' to do as required to satisfy his valuer. We got there.

I'm with RL, although in the early 90's we were struggling with what many thought was a crazy high mortgage, at 16% (for a short while). I paid for courses to be become able to work offshore, hated it, but it paid for the mortgage, and later enabled me to go for BTL's.

Bl**dy offshore.

You gotta live somewhere, you gotta pay to live somewhere. Property prices might crash and so buying later is better, but they might continue to rise. Interest rates will rise further, but how far?

The gamble is your choice. How many years till you're 40, how much of the mortgage would be paid off by then?

44 minutes ago, Grampa said:

Yes that

Yes, that is what I was mulling over and feasibility of. However, the profit generated within the Ltd Co (after tax) still needs to be be taken out at some point from the Ltd Co and how that is done also needs some thought because if is classed as personal income it would be declarable therefore defeating the whole excise. Though I acknowledge a certain amount of dividends can be taken tax free.   Or the profits put towards the deposit on the next purchase brought by the Ltd Co. 

You've given me some thought on the dividends.

A Co can take and lose directors at will as I understand. Directors have possibility of taking some dividends free of tax, up to a threshold each year. So if I understand correctly, a co will pay profits on tax in the year it is achieved, it can sit w/o tax consideration after that as co funds.

In later years it might be director/s could enjoy drawing down those funds as dividends. Some research as to if this is then additional to a directors personal income, or a capital gain, seems worth while.

Is this  a legal way to transfer to the kids, for example?

Grampa I might have misunderstood your intent.

But the agreement, whatever that is, between yourselves as individuals and the company (the fact you have control of the company is irrelevant in legislation) means that is all in house and can be designed and adjusted as desired (within HMRC parameters).

The result of that is that as individuals 'a' company rents from you. The company pay you a rent for which you will be assessed for tax.

The company is allowed to let on the property to 'another'. That agreement of tenancy is likely to be an AST. All relevant legislation such as deposit protection should be adhered to. The company shall then be assessed for the rental income it receives.

You desire that your taxable profit is low. You desire that the company enjoys the majority of profit and pays a lower percentage tax (than you might) on that profit. I think you have suggested that the company pays a somewhat reduced rent and that is justified by it being a guaranteed rent. And in fact if that meant you happen to run this particular agreement at a personal loss then that would reduce your portfolio profits. To that end you are better being responsible for overheads and ongoing expense's.

Any repossession of an AST tenant is for the company to concern itself with (as it is the companies tenancy), can the company use a S21? Either way it is being removed from England soon enough anyway so may be irrelevant.

Requires your accountant to clarify feasibility.

Are there mortgage issues?

Surely insurance is easy to obtain.

Have I understood your intent anyway?

As I understand Mel a LL can still use the S21 no fault eviction in Wales. I just have and no defence was raised.

On 15th July the period of the S21 will be extended to 6 months, Shelter are disgusted and fear an increase in S21's before this. It effectively gives any new tenant 12 months tenure, I haven't researched the S8 route for Wales recently, to see if it is still as it was.

So soon England will remove our S21 route. I'm all for housing security but here there is a total failure to recognise that intelligent LL's don't evict for no reason. Either the tenancy is bad or they wish to sell. If the tenancy is bad I don't see the LL should be forced to suffer it for longer. If the LL wishes to sell then keeping them trapped is a terrible design in this supposedly capitalist free country.

A few years back a drinking buddy was outed by a S21, so he was was hunting for the next domicile. We suggested he might consider buying, with a mortgage. As is usual for this Socialist bod he became angry "I don't want a mortgage". We shrugged shoulders, it's his life. But he is an example of some one that expects society to take responsibility for his welfare, imo this has been normalised.

My longest tenants (Wales) served and left late last year. Around 2004 I offered them the house at £54k, a good deal for them. They rejected believing that prices were artificially high. Had they bought they would have paid less than their rent for a mortgage and owned outright by 2019. they bought a few miles away at £135k, I've just sold at £137,500.

LL's are considered greedy and uncaring, too many people believe the media cr*p and don't recognise that many tenants, not all, could easily have bettered themselves. But I don't see attitudes changing any time soon, and politicians pander to these whims.

Thanks RL, I would look to confirm information on the fools rush in type thinking. I've an expat friend who has Spanish residency on Lanzarote (too hot for my northern complexion) and get some tips there.

My cunning plan is over approx 4 years. As is usual a battle plan rarely survives the 1st encounter with the enemy. The remaining welsh house shouldn't be issue, assuming the market holds out long enough to support a reasonable sale.

Selling the flats caught me as the lease is no longer long enough to support remortgage for a buyer/s. I am reluctant to spend ,000's on a lease purchase anyway so more inclined to keep taking those revenues and hope legislation will give us advantage in future, at some time.

With enough to be dealing with now the English properties can wait. Meanwhile I envisage more cr*p from the English gov't, such as the incoming right of tenants to have animals.

3 hours ago, Melboy said:

Sorry COR Wales is definitely off my list

Tbh I don't blame you.

On Saturday we take the batteries and some other kit to Beaumaris for the new owner of the yacht. Whilst we both feel some sorrow we know selling it is the best thing.

It is v churlish I know, but I try as best I can to buy anything I need for Wales in England now, fuel included. I would resent any of my dosh helping the Welsh economy. What have the Welsh ever done for me? Gosh, we even built their castles.

1 hour ago, Richlist said:

I heard of a potential business opportunity yesterday for those brave enough to get in early. Apparently there is likely to be a strong market for flying relocated immigrants from Rwanda back to France in the near future.

Anyone fancy sharing the cost of a good second hand Boeing767 to get the party started ?

The problem will arise when the French air traffic control redirects the flight to the UK, if they're not on strike anyway.

I read, so take as you will, that France give free train travel warrants to immigrants that wish to travel north. Thus they are then closer to the camps for departure across the channel.

Nice tip RL re: Spain. I / we have had thoughts about relocating there. 1st would be to organise our own settlement, 2nd would be to create a holiday letting business. It's v early days and lifting my anchors here (Wales clearly 1st) is part of the design.

Becoming resident there is more difficult post Brexit, although I believe Spain wish to restore ease of relations with us fruitful Brits. But your suggestion is that making a reasonable profit is Spain might be a challenge, that assuming the same tax status applies to holiday letting as does domestic letting.

I wonder if Greece still ignore their taxman.

Nice one Mel.

Now I have a decent one for you, it was returned to my possession only today. The sale sign is up already.

On a similar way of thinking, would I do it all again with BTL's? Yes I would, but in very different ways.

If I had the benefit of hindsight before i started in this business I believe I / we would have enough of a pot to retire on now.

Mel the 2x council tax to 2nd property owners in Wales is the max a local authority can charge.

It comes in April 2023 and as yet Denbighshire haven't decided how much of that 200% will be applied to me and others. Btw that's in addition to the 100% that residents are paying.

I am aiming to get out, the tenant hanging on may prove to be disastrous if the market changes. Not only, but due to the Welsh Retard Assembly attack on landlords, I see the  Welsh housing market will go into decline first, and at speed. 

A question for us here in England, is will Westminster watch, amend and impose similar measure. Last night BoJo announced a right to buy for housing association tenants, can / will he decide similar is reasonable when private tenants (through Shelter and the like) shout that they are being unfairly disadvantaged.

Small thought but sub prime world market collapse started with a sort of similar directive of causing the less capable of taking ownership.

Anyway, while we can see good profits in England, I view that the tenant protecting measures have go way toooo far, and there are toooo many pretend do gooder organisation jumping on that band wagon.

We should all start making band wagons as that is a growing business.

All good Grampa.

Yes there are differences in Welsh housing law, there is risk I am not fully aware. Where I'm not aware of a difference I answer as I understand from the real world.

I'm with you on get property back then worry about other issues later. I am biased here so it isn't for me to advise the outgoing tenant of legalities. There's plenty of freebies will do that already.  

I am aware of the situation that we aren't able to charge rents to 2 tenants. That being if we re let after a departure that is still paying out their notice then there must be a refund or a no charge. I have attempted to negotiate a settlement of tenancy closure in those circumstances.

Here I am selling, this being my 2nd Welsh property to go to market (t'other sold). My taking possession maybe muddies the waters if that is considered to be to my financial benefit, although i might yet be out of pocket if the market turns, as is increasingly likely. But surely it is reasonable to take possession to ensure security and no issues that could cause property deterioration.

I gave up attempting to claim for tenant damage years ago. They cite fair wear and tear and my claim fails, pointless. But the correct payment of rent during a 'valid' notice period does seem reasonable and easily demonstrated as due, assuming my understanding (as stated) is true. I do accept a judge would sympathise with a tenant so being able to state the case well would be a great advantage, should negotiations (as per RL) fail, and i decide it's got a high enough chance of success, in a Welsh court.

Welsh housing law changes seriously on 15th July,

and for a change I've been messaged of more changes on 1st December 22. I haven't looked at those yet.

Run for the hills I say, but perhaps not the Welsh hills as they tow your car away when you get there.

Meeting in the middle is a nice resolution.

Trouble is sometimes when one party takes the p and abuses beyond reasonable, the halfway can seem like a greater advantage to the other than should be accepted.

It's early days.

I served a S21 to expire 31st May. That being the last day of a tenancy period (SPT).

I was contacted by some one purporting to be local council(Denbighshire) homeless assistance. Essentially he wanted to negotiate an extension to the S21. I wouldn't talk of specifics (data protection / privacy) and the pushy attitude resulted in my putting the phone down, twice, and maybe I used a couple of expletives.

Now the tenant has told me they intend to move on the 14th June. No biggy. That's a lot easier than progressing to court, whenever that may have been.

The tenant clearly believes he should only pay till the 14th, as I have served a S21.

My view is that as he  / they haven't vacated by the 31st May then they are now in a new period of tenancy and should pay till the end of a period. And as I was only informed yesterday a full months notice would expire at the end of the July period.

I had requested pre arranged access for viewing, to include estate agent. Possibly I could start some required works also. This wasn't permitted. So I've lost time and will have expenses I may have avoided.

I'm expecting to have to deal with their abuse of the property, and disposal of their rubbish is likely. In Wales LL's must now treat rubbish as commercial and employ a registered contractor, or be liable to a £2k fine.

It's easy to understand the stresses of having to relocate, although this may have been avoided had the tenants complied with my requests during the tenancy. So really I'm feeling that I have been and will be disadvantaged too much to be financially sympathetic.

Thought appreciated.

I'm not so sure your situation is as straight forward as mine was. Mine is a purpose built block of 6 flats.

I ignored the opportunity when the ex freeholder served notice that the freehold was to be bought by another.

By law I / we had to be given opportunity to buy it at the negotiated selling price as the incoming new owners were buying for. I don't know when this law came about.

So for you there are a couple of things to check. Is there / was there a legal requirement for you to be informed and so given opportunity to purchase both then and now.

I have enquired recently about buying the freehold, for resale / remortgage reasons. There is an online calculator available for us to understand values should we force a sale to us.

The big but is that there is a push to change legislation. As many naive buyers find themselves effectively trapped by decreasing value / unmortgageable properties. As far as I understand the aim is to make lease extensions or purchases easier and fairer, whatever that might mean.

One aim is to allow free or cheap lease extensions, as often might be desired.

An issue with a sale is that for mortgage companies they want a responsible body that will ensure upkeep of their risk.

Till I understand where legislation might go I've decided to hang loose and see.