Carryon Regardless Posted November 12, 2020 Report Share Posted November 12, 2020 I feel that it is no longer our choice of who lives in our property once we have handed over the keys. The legislation increases the barriers for us to repossess, and the cost of simple claims and even possible court appearances shouldn't be ignored in this thinking. Increasingly I see that route as requiring more specialist agencies to assist, at cost. Shelter are seen as beyond reproach and play a supporting role in the gov't's strategy of protecting T's in continuance of their tenure, and penalising LL's effectively for being a LL. They employ specialist lawyers and come court time claim against us for those lawyers costs (seen that one when a friend fought a deposit dispute (taken by his agent) and it cost circa £16k). In any case I perceive that the courts will do as they can to provide 2nd chances and more to wayward T's (that of course ignores whatever might have occurred in a tenancy to cause us to attempt repossession). That comes with additional application costs to us. We may hope for such costs to be awarded against the T, that requires a sympathetic judge and a T / G'tor that can afford, I actually see that as a cat in hells hope. So , beside possible phycological advantage, are regular inspections of value? There is less and less we can do about whatever we might discover. Are we better signing T's up for the 3 year max now? The additional and rising costs associated to each tenancy are then reduced where T fast turn around is expected. Quote Link to comment Share on other sites More sharing options...
Melboy Posted November 13, 2020 Report Share Posted November 13, 2020 I have a property coming up for re rental in January after a 6 year tenancy and I have been in two minds whether to re-let or sell it. It is what I call my flagship property and it's a very good one and the best in my fleet. The problem is I will get wacked with a heavy CGT payment even with joint husband / wife ownership and CGT allowances and I am in no mood to pass over a huge sum of money to the Government right now coupled with the fact that any financial investment from the sale will earn nothing by way of capital interest. I am also getting a little exasperated with the way this Government is treating landlords in the private sector and perhaps I should call it quits after more than 30 years of being a private landlord. Looking on the bright side though thank God I am not a landlord in Wales. 😅 Quote Link to comment Share on other sites More sharing options...
Richlist Posted November 13, 2020 Report Share Posted November 13, 2020 If you think CGT payments are high at the moment when they stand at 18% & 28% don't read the newspapers. Rishi Sunak is considering raising CGT in line with income tax i.e. 20% & 40% or reducing the allowance from its current £12300 per person pa to £5000 or even £1000. In my opinion things WILL get worse, charges will undoubtedly be higher than they are now. Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted November 13, 2020 Author Report Share Posted November 13, 2020 It isn't difficult to see from my continual winging that I agree, and have thought same for a long while, that we are being abused by whichever flavour of gov't we have and will get. We can't beat it so we either live with it as best we can or get the hell outa Dodge (get it, dodge ( the ongoing crap that is)). As for having a go at my friendly Welsh overseers, well they won't realise that they are cutting all Welsh noses off until they are the much poorer neighbour of England that the WRA are creating, and then it will be our fault so our investments there will become kindling once again. I used to be pretty well appraised of tax concerns, but laziness and apathy have caused me to be less so. Are we no longer able to reinvest our capital gains revenues into a new investment to avoid CGT (well defer it as it is merely transferred)? Mel you might consider selling to your limited company and at a price that avoids a CGT hit. That at least can soak up 2x CGT up to the allowance threshold. I'm not sure if later advantages might be created for the Ltd Co. Quote Link to comment Share on other sites More sharing options...
Grampa Posted November 13, 2020 Report Share Posted November 13, 2020 https://www.landlordzone.co.uk/news/breaking-sunak-gets-green-light-to-drop-cgt-bombshell-on-landlords-and-property-investors/?fbclid=IwAR2Y3Pz4xvHy1TwR1yV_v6OOd-HRf_T47_Wt8YbWD5FOsxE_RGrGXyD3REI Quote Link to comment Share on other sites More sharing options...
Melboy Posted November 14, 2020 Report Share Posted November 14, 2020 I was feeling quite chirpy and relaxed this Saturday morning until I scrolled down to the Funster.....Grampa... with his latest contribution relevant to all landlords thinking of selling up. 😅 Quote Link to comment Share on other sites More sharing options...
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