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At last.......I've done it........I got there.....totally mortgage free, all of my properties paid off.

Now I've got a different kind of problem. Rental income without mortgage outgoings = much larger tax bill. I'm going to have to get incredibly creative.

I've paid my own home mortgage off x4 times over the years and always borrowed again against its value. Feels like a large weight has been lifted off my shoulders.

 

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Congratulations Richlist. We are just restructuring our properties. We own one outright, one on interest only and one on repayment plus our own domestic property. We have restructured the interest only to be a repayment so that in 17 years we will own it rather than have to sell. We are then left with just a small pot of interest only on our property that I am plugging away at every other month or so. Our focus is now to pay off the mortgages rather than buy more as the up front costs just can't be justified. Coventry BS have a nice 1.59% for the entire term (subject to their reviews and interest rates, it is not a base rate tracker...) BTL mortgage available just in case anyone is still on a high interest mortgage and looking for an alternative. Note - I am not a financial adviser so proceed with caution! 

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It's a nice feeling RL. I remember so well back in 1985 walking into the Halifax BS and paying off the last £5,000 of my own property mortgage. I expected a fanfare of trumpets and back-slapping congratulations but sadly this did not happen.

Short lived though because in 1999 I took out another mortgage to buy property. All paid off now including all my rental properties.

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I should stress that I try to avoid tax legitimately instead of evading tax illegally.

I'm of the opinion that the vast majority of landlords fail to claim all that they are entitled to.......me included.

I've worked hard, gradually adding to my tax spreadsheet.

Over the last few years we've sold 5 properties and that has opened up a few extra opportunities to claim. It's easy to forget about any mortgage exit fees, general finance costs, extra postage, telephone, mileage costs associated with conveyancing or agents.

Claiming capital allowances for cars instead of fixed mileage costs has worked in my favour.

Claiming the use of my home as an office and calculating the amount in the most advantageous way has also worked well.

Ensuring I claim all capital expenditure and claiming any interest charges (other than mortgages ).

Ensuring that all maintenance costs are claimed along with mileage and all costs of materials......it's easy to forget some of it.

The list goes on and because there is no limit i suspect that many accountants miss things off.

 

 

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The one thing I didn't claim for for years was for my computer printer replacement and printer ink but I do now as everyone knows you have have to churn out loads of paper for tenants and your letting records.

I think I have it all sensibly covered now regarding tax claiming allowances.

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Postage, home phone, mobile, ISP, books & publications, print cartridges, cleaning materials, stationary,  training courses, repairs to equipment, bank charges, car parking, insurance, dry cleaning/laundry, photocopying, advertising, consumables, computer software, capital allowances, utilities during voids etc.........

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  • 1 month later...

Congratulations Richlist ..you were one of the first to give me straight to the point advice many years back on another forum ..and it was a great help to me as a novice Landlord.

your continous support here is always welcome..you have indeed worked hard ..well done on being Mortgage free.

 

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