kanrent

If interest rates fall below zero you will probably have to pay the bank to keep your money 

Hi does anyone know about the VAT cut, my letting agent still charges me the usual 20% Vat

On 9/8/2020 at 11:50 PM, Richlist said:

 I sympathise with you, I'd hate this sort of thing to happen to me.

* Try to attract a better kind of tenant. Stick to professional people.......doctors, teachers, engineers etc.

* Avoid applicants on benefits.

* Take rent guarantee insurance or insist on a home owning guarantor.

* Above all else.....follow the rules, even if the courts are closed.

It's always more difficult to design a satisfactory outcome after the event. 

 

As a general rule professional tenants are better but not always my last tenant was a loss adjuster for insurance companies owed rent moved out with telling me, lied to the neibours about where he was moving to, stole everything in the house including the carpets and trashed the place before leaving. 

Just now, kanrent said:

Avoiding Capital Gains Tax on Inherited Property

Another time when the capital gains tax comes into play is when an individual inherits property. Often, the individual who inherits the property does not want to deal with the burden of keeping it. The good news is that if the individual chooses to sell the home immediately, they may not find themselves subject to the capital gains tax.

The deceased’s estate does not have to pay CGT on any property or assets not sold before they passed away. The government considers these to be unrealised gains but does not require inheritors to pay a CGT. However, if the value of the property increases after the person dies, then an individual will need to pay CGT when sold during probate.

The capital gains tax is not on the final sale price minus the initial buying price. Instead, the government estimates the CGT based upon how much the value of the home increased after the person passed away. Those who inherit property do so at the probate value. The government only holds them liable to pay CGT on the increase in probate value.

So, if an inheritor knows that they do not want to keep the inherited property, they should sell it during probate. The increase in value that occurs during probate is minimal if any at all. Selling the property during probate is an excellent way to avoid capital gains tax on inherited property, considering that the government waives previous CGT as unrealised gains.

Does the above include BTL

On 9/2/2019 at 1:15 PM, Richlist said:

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.

 

Avoiding Capital Gains Tax on Inherited Property

Another time when the capital gains tax comes into play is when an individual inherits property. Often, the individual who inherits the property does not want to deal with the burden of keeping it. The good news is that if the individual chooses to sell the home immediately, they may not find themselves subject to the capital gains tax.

The deceased’s estate does not have to pay CGT on any property or assets not sold before they passed away. The government considers these to be unrealised gains but does not require inheritors to pay a CGT. However, if the value of the property increases after the person dies, then an individual will need to pay CGT when sold during probate.

The capital gains tax is not on the final sale price minus the initial buying price. Instead, the government estimates the CGT based upon how much the value of the home increased after the person passed away. Those who inherit property do so at the probate value. The government only holds them liable to pay CGT on the increase in probate value.

So, if an inheritor knows that they do not want to keep the inherited property, they should sell it during probate. The increase in value that occurs during probate is minimal if any at all. Selling the property during probate is an excellent way to avoid capital gains tax on inherited property, considering that the government waives previous CGT as unrealised gains.

On 7/25/2020 at 1:12 PM, Melboy said:

...........and the Welsh Assembly will wonder why so many people are homeless and seeking accommodation in the years ahead.

The result of this short sighted measure does not take take into account the landlords financial position regarding bank mortgage payments etc. Oh well over to you COR for your comments. The straw that broke the camels back perhaps for you?

These temporary measures will turn into permanent measures. Thank goodness I don't have any rented property in Wales. I nearly bought in Wales some 10 years ago now....... but woke up!

Better start praying it won't happen in England 

2 hours ago, Richlist said:

Yes I read that in the press today. Seems there is a suggestion they are looking at CGT with a view to raising rates in line with income tax. They took a very close look at inheritance tax last year but no changes were proposed. ......

So:

18% would rise to 20%

28% would rise to 40%

Ouch !

However, I suspect with an increase as high as that there will be caveats e.g. they may allow transfer of property to family members at a lower or nil rate as a sweetner.

Should those increases happen, I just did a quick calculation on the CGT payable by comparison on a small flat i am hoping to sell at the end of this year/ early next year. On £170K sale price my CGT bill would rise by £9000.

I did read they are also thinking about abolishing the 12k relief 

Well seems like the chancelor will introduce a wealth tax by increasing CGT so much for a tory government 

5 hours ago, Richlist said:

I can't offer any specific insight into letting property in Newcastle........although I have been there and I love the place.  But I can provide a very lengthy list of reasons to be cautious about buying and letting property generally at the moment . Many items on the list have been there for a long time and individually wouldn't normally create a reason to be overly carefull. But we have what I would call an almost perfect storm......

Covid 19 with no end in sight, unemployment, economy in trouble, Gov not doing very well, Brexit at end of year with all the uncertainty it brings, potential civil unrest, general lack of optimism, freeze on evictions/court action, increased legislation, tenants not having to pay rent, etc etc etc......I could go on all morning.

I would recommend caution.......put your money (or at least some of it) into electric scooters......you might do a little better.   Good luck.

 

 

Thanks on that note I think I will wait and see what happens the uk seems to be in a complete mess at the moment 

1 hour ago, Richlist said:

Howay man......are you serious ?

Is that a bad idea can you elaborate 

Hi just wondered if anyone here has a buy to let in Newcastle upon Tyne, I'm interested in buying a property there and am wondering which would be the best type of property to buy and which area, also interested in a good letting agent to manage the property. 

On 5/31/2020 at 1:41 PM, Melboy said:

It is an electrical safety inspection of the property and the requirement is not to bring it up to 18th edition standards 2020/1 but to ensure that items like incorrect or damaged/dangerous electrical circuits/sockets etc. are picked up on inspection and replaced or repaired.

My long time electrician I use is all geared up to do my properties early next year and he knows it is a 5 year certificate and not the normal annual one.

As Grampa has said watch out for the Sharks who will inform you of all sorts of things need replacing like your fuse box doesn't meet 18th edition regs. It doesn't have to, it only has to be inspected and safe to use.

mel boy i just read this here on this sites news

landlords of privately rented accommodation, including houses in multiple occupation, must:

• Ensure national electrical safety standards set out in the 18th edition of the ‘Wiring Regulations’ (British Standard 7671) are met.
• seems like it does have to meet the 18th edition

On 5/28/2020 at 2:06 AM, lorraineA said:

I am looking for 3/4 bed houses up to £130K each and have a budget of £600K

 

What area are you looking

On 5/1/2020 at 1:43 PM, Melboy said:

The rules on dealing with any gas appliances including disruption of gas supply to any appliances are clear and laid down in UK.Gov. Gas Law as to who can carry actually carry out this work. 

The answer is simple really: Only gas registered engineers. Sure there are many people who will carry out this work themselves believing that they have sufficient knowledge in what they are doing. This kind of approach is OK until anything goes wrong and that individual could face prison or a really heavy fine if anything should go wrong. This has been the case for many years and it is well reported if you search it out. One of the latest incidents that I am aware of was a Landlord in Reading (I think it was) was fined £5,000 for knowingly allowing a non registered heating engineer ( Plumber) to install a gas fired boiler.  There are many such cases that I have read about over the past years.

Any landlord would be a fool not to follow the rules on gas safety certificates for their tenants as the HSE and the law courts would come down very heavily on those persons who break the strict rules on gas safety.

I have put this link up for any person viewing this topic to read and digest.

https://www.hse.gov.uk/gas/landlords/gassaferecord.htm#

Facts that perhaps most people are not aware of. All gas registered heating engineers have to be re-certified every five years and it means a week off paid work and back into the classroom and a cost of around £1,000 to be re-certified on the UK gas register.   Gas inspection electronic print-out analysers have to be re-calibrated every year at a cost of £150.  The anylisers have a life of around 5 years and cost approximately £800 to buy.

Not in London area...... but the average price of a Landlords gas certificate is £80-£85 for peace of mind and tax deductable.

My Son charges £70 inc VAT....... and a charge of £50 to me 😀

*I am having a gas safety boiler service carried out this morning*

Should be free for dad

Don't forget about the government's persistent efforts to try to destroy the BTL industry that also needs to be taken into account

2 hours ago, Melboy said:

Tricky question that is.  Depends where you are located and what you are expecting to purchase with your £120k cash. So more details please if you can.

I did exactly this 2 years ago due to the low interest rates. Coughed up the wicked extra SDLT which was a bitter pill to swallow at the time but I have got over it now.  😁  Wifey wasn't exactly overjoyed with what I planned to do but realised she was on a loser trying to stop me but it couldn't have been too bad a decision on my part as she mucked in with the painting etc. before we let it out. Nice property in a nice location and to my simple mind on economics I could always re mortgage it or even sell it on if I ever had to.

2 years on and no regrets so far I have to say with what I did. I would buy again and may do so if something nice came my way.  You are never too old in this game.........fortunately.  😄

I would prefere South East England excluding London of course, Essex and Ipswich has some properties for that price but I guess anywhere in the UK would be OK, basically anything rentable in that price range but only freehold 

Does anyone have any ideas about where would be the best place and property type to invest in a BTL property for £120,000 in the UK, have some spare cash and thought it would be better to put it into property than in the bank

Just been reading hmrc Web site

If you claim the property income allowance you can't claim any expences as we already know, unfortunately  I think these property expenses include the agents management fees 

On 1/28/2020 at 2:14 PM, Melboy said:

I am looking into this further to gain some more precise detail but I can tell you that my Son's accountant automatically, this financial year, deducted the £1,000 from the total rental income received and it does include everything including rates, ground charges etc. etc.  

I would say it's a scheme for only those who have perhaps the one property with the minimum of expenditure outlay.

 

I'm just wondering if you only have 1 property and you claim property income allowance on your tax return do you still have to complete the other boxes on the return stating your property expences 

Has anyone got any idea what changes might occur in relation to CGT now the tories are in power, before the election bj kept silent on this

2 hours ago, Richlist said:

I've a property i want to sell in the new year.

Normally by now I would have already given the tenants an early indications of my intentions, have served an S21 and pretty much know when I would get the property back.

However, the General Election is only 6 days away and if Labour win I won't be selling in a hurry,  perhaps not for a few years until I get more details on their capital gains tax plans. 

I could carry on letting it for another parliamentary term if i have to.

Let's see what happens next Thursday.

If labour gets in they might make you sell it at a discount to the tenant under their proposed "tenant right to buy" 

5 hours ago, Richlist said:

Excellent news. It can't be seen as anything other than progress and falls into the same positive category as declaring flood risk areas.

Can't the tenant check the air for themselves before they move in it's getting ridiculous the nanny state will have us wiping their backside for them next

What happens if you rent your house out and go to live abroad will the tenant have a right to buy under market value and leave you homeless when you return, or no fault eviction can't move back into your own home will one have to wait until the tenant dies

The devil really is in the detail I could write a hundred pages about  "what ifs" "supposings" "maybes and  " buts"  but the politicians won't say just wait and see how we're going to get shafted (sorry about the vulgar language) just makes me angry that landlords who provide homes for people are depicted as monsters 

So If your a landlord.                                   vote Labour and your f***ed                    if your a landlord.                                                  Vote tory and your f***ed

Seems like all politicians hate landlords

Just wondering if it's safe to give my UTR number to a third party