Melboy Posted October 30 Report Share Posted October 30 Did the Earth move for you?  😅 Personally I thought it was fairly dismal but true to form for a Labour budget but as always the devil will be in the detail which is never revealed and it will come 3 weeks later when the voters memory has dimmed to what was actually mentioned by the Chancellor at the dispatch box. I have no doubt there will be a "special budget" for landlords later on when we will all get shafted, one way or another. Keep smiling! Quote Link to comment Share on other sites More sharing options...
Richlist Posted October 30 Report Share Posted October 30 No change to CGT for 2nd homes/BTL and no change to council tax banding both of which were suggested. But, big increases in SDLT if you want more BTL. Seems most people have overlooked the fact that this was a 'mini' budget. The full sized budget will hit us in 6 months when all of the things we think we got away may bite us.   Quote Link to comment Share on other sites More sharing options...
kanrent Posted October 31 Report Share Posted October 31 Stamp duty is the door to enter. CGT is the door to exit. Government has made the door to enter more difficult at the same time keeping the exit the same. The renters reform bill will give you a good kicking if you decide to stay Quote Link to comment Share on other sites More sharing options...
kanrent Posted October 31 Report Share Posted October 31 6 hours ago, Richlist said: No change to CGT for 2nd homes/BTL and no change to council tax banding both of which were suggested. But, big increases in SDLT if you want more BTL. Seems most people have overlooked the fact that this was a 'mini' budget. The full sized budget will hit us in 6 months when all of the things we think we got away may bite us.   7 more budgets to go before the next general election Quote Link to comment Share on other sites More sharing options...
Melboy Posted October 31 Author Report Share Posted October 31  How much stamp duty will landlords and second home buyers now pay? Under current rules, a £300,000 property with the surcharge included would cost £11,500 in tax. That will now rise to £17,500 with the surcharge rising to 5 per cent. On the same property, a person buying the home to live in would pay just £2,500 - and if they were a first-time buyer, nothing at all.  A second home purchase costing £500,000 previously cost £27,500. From tomorrow it will set someone back £37,500. The changes will impact current property transactions. However, those who have already exchanged contacts will reportedly not be impacted by the hike - even if they are yet to complete.                     ............................................... Just in case anyone is thinking of buying a second home or BTL. My Grand daughter is a property legal exec. for a very large firm of property solicitors and she said it has been manic this past month with properties trying to exchange or complete before the budget and a fair few have not managed to do this for a whole variety of reasons. "Robber" Reeves hasn't given anyone any breathing space has she by announcing her new legislation as TODAY and not a sensible 3 months to complete.     Quote Link to comment Share on other sites More sharing options...
Richlist Posted October 31 Report Share Posted October 31 Moan, moan, moan......it's not all bad news......there's 1p off a pint. Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted October 31 Report Share Posted October 31 I agreed a sale of 5 Welsh flats this morning, toooo early to celebrate as the money shouldn't be counted till in my bank. Anyways, I called my solicitor. They are maxed out and not taking new instruction. Those pushing to try and beat the 'guessed' stamp duty increase can't be all of them surely. So investors are hit by another 2%. But since we expect the Renters Reform to be massive aggro for us, surely investors are exiting, meaning buyers would be mainly non investors. Can anyone explain why the market is so active? I hadn't heard of this, or seen evidence of Sale / Sold signs. Quote Link to comment Share on other sites More sharing options...
Richlist Posted October 31 Report Share Posted October 31 Almost everyone has been rushing to get bought or sold before the budget potentially hits them with a big oncost. Those that have exchanged before today are ok otherwise it could have been bad news. Everybody could have been affected that's why the solicitors are so busy. Quote Link to comment Share on other sites More sharing options...
Richlist Posted October 31 Report Share Posted October 31 8 hours ago, Carryon Regardless said: I agreed a sale of 5 Welsh flats this morning, toooo early to celebrate as the money shouldn't be counted till in my bank. Anyways, I called my solicitor. They are maxed out and not taking new instruction. Those pushing to try and beat the 'guessed' stamp duty increase can't be all of them surely. So investors are hit by another 2%. But since we expect the Renters Reform to be massive aggro for us, surely investors are exiting, meaning buyers would be mainly non investors. Can anyone explain why the market is so active? I hadn't heard of this, or seen evidence of Sale / Sold signs. The sale of 5 properties in one go.......I'd hate to see your tax bill ! Most conveyancing firms have a fast track system where if you pay a slightly higher fee your sales get dealt with on a priority basis. Can be extremely useful when they have a heavy workload. It also usually entitles you to a phone number that gets you through to someone who can deal with or answer any questions without waiting or being kept on hold. Well worth the extra expense !I The trouble is people usually appoint solicitors based on the lowest cost and then wonder why their business is always the last to get dealt with and they wait months to complete. My advice would be to go 1st class, pay a little extra, get a better, faster, less frustrating experience, after all, the legal costs are tax deductable Quote Link to comment Share on other sites More sharing options...
kanrent Posted November 1 Report Share Posted November 1 6 hours ago, Richlist said: The sale of 5 properties in one go.......I'd hate to see your tax bill ! Most conveyancing firms have a fast track system where if you pay a slightly higher fee your sales get dealt with on a priority basis. Can be extremely useful when they have a heavy workload. It also usually entitles you to a phone number that gets you through to someone who can deal with or answer any questions without waiting or being kept on hold. Well worth the extra expense !I The trouble is people usually appoint solicitors based on the lowest cost and then wonder why their business is always the last to get dealt with and they wait months to complete. My advice would be to go 1st class, pay a little extra, get a better, faster, less frustrating experience, after all, the legal costs are tax deductable Are accountants fees to work out the CGT also tax deductable Quote Link to comment Share on other sites More sharing options...
Richlist Posted November 1 Report Share Posted November 1 I don't see why those costs would be treated any differently to accountant fees for income tax. Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted November 1 Report Share Posted November 1 Morning all, RL I used this lady 2 /3 years ago to sell 3 houses. She is partner in a largish, local firm. Not cheap, but I found her efficient. She is on holiday till Monday, so I expect her to contact me then. I spoke to a locum, an interesting chat, but clearly she isn't there to make decisions. Now CGT, this being a product of profit. It's N. Wales so that already means depressed, and depressing. You will have read of the problems I've had there over the years, it really does affect resale value. Then there are freehold issues. I also made the conscious decision to neglect, tenants and properties. Darn Sarf you wouldn't sell a shed for what I have agreed on these, but I will still celebrate, on an early release from a sentence sort of basis. I also have a property in Accrington. Believe it or not it's actually in a better part. But I will be effectively throwing that one away as well. That leaves 2, both also in England. I'm considering strategy on these 2. Has their price already been affected by the incoming (missile analogy) Rental Reform? Will the price be affected more with time? Can private buyers take up the slack in these areas? An extra 2% stamp duty on 2nd properties isn't going to be to my advantage here, especially as 1 is in a tourist hot spot. I'm actually considering switching that to a holiday rental. But there is already talk of planning consents to do that. I reckon a licence, plus associated annual costs, could follow. The obvious issues for investors is the increased stamp duty (or whatever the devolved criminals call it), then any consents / licences, are all taken prior to knowing what profits might be. We must also attempt to consider how else they might turn their attentions from BTL to AirBnB as a new cashcow. Quote Link to comment Share on other sites More sharing options...
Richlist Posted November 1 Report Share Posted November 1 I suspect that with the increase in SDLT buyers will make more effort to persuade the sellers to reduce prices to help accommodate the increase. After all, it costs nothing to ask for a reduction in price. The seller can agree or hold out for more. In my part of Essex even a fairly mediocre terraced house is going to cost a BTL buyer a tidy sum in SDLT. It's beginning to make the business of letting holiday caravans & motorhomes an attractive proposition !!!! Quote Link to comment Share on other sites More sharing options...
Melboy Posted November 2 Author Report Share Posted November 2 I have seen a couple of properties that just a few short years ago I probably would have bought but now I more than hesitate and it's not really anything to do with SDLT as back in 2018 I bought a nice 2 bed semi detached property and paid the enhanced SDLT rate for 2nd homes without blinking. Turned out to be very good buy 6 years later and a very respectful capital gain has been made which only proves the old saying location, location, location is correct. My problem is the cost of renovation these days and just how bad is this wretched Labour government going to shaft landlords. Tenants are no problem as I have at least 3 previous good tenants of mine from years ago wanting any property I have available. Also is there an age limit when you actually pack it all in?  Asking for a friend.  😅 Well done COR in selling your flats and you are right until the money hits your bank account you cannot count on anything.  Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted November 2 Report Share Posted November 2 2 hours ago, Melboy said: Well done COR in selling your flats and you are right until the money hits your bank account you cannot count on anything.  Thanks. Although nothing significant happened for 4 months. Most interested parties were asking for a freehold valuation. It got a bit complicated, but what came in was to my mind extortion. But with purpose built, as these are, they had the strong advantage. So an agreed sale, at low value, now seemed unreliable. I informed the buyer as soon as, and he went silent. So I signed up a waiting tenant. I now viewed that buyers would be deterred, so rolled my sleeves up to renovate and improve as a going concern. I took the view that the remaining 2 mortgages could be paid off. I would ignore the freehold purchase, and run the flats for the next 10 years for their revenue, and then see if 'another' wanted them for a pension then. Meanwhile leasehold reform might serve as a financial advantage, one day. The 10 year revenue would be attractive enough, even if N. Wales 'aint. Remember here that tenancy reform has already happened, so the increased risk / hassle is in place. In that respect selling English stuff (before summer 25) to pay off Welsh mortgages has some sense. But I have an Agent instructed. The offers via them then came in rapidly. So I agreed a new deal. The original buyer appeared, at the flats. He thought a lower offer was good for me, not knowing about the flurry of interest. So I rejected his kind consideration, "as things had moved on". He increased to above the previously agreed deal. Still not enough though. Yesterday another buyer offered well above that agreed in the new deal. I suggested the new buyer suggest a way to offer assurance. He responded by suggesting a non refundable deposit of a few £,000. I feel commitment from both sides, to reduce risk of backing out / gazumping (again) would be reasonable. So Monday, assuming my solicitor wants my business, I'll leave that one with her. Anyways back to the budget. The increased purchase tax is a significant issue imo. Wales +4% Over standard that is, England now at +5%, Scotland wants +6%, for the 2nd property purchase that is. We have a (somewhat flexible) 3 year plan. It was longer but we're older now. To relocate to N. Scotland. I have no interest in domestic tenancies, I'm v tired of being Mr Evil. But holiday lets would still attract the +% purchase tax. Wales is a no no. Scotland are 1% over England, but as a loading they're both painful. Then there is the consideration of what might be done to those investments in the future, to make them less attractive to run. At some point you would hope that these Gov't's that keep attacking investors might realise that by making things more reliable and quantifiable going into the future, that investors will be far less hesitant in aiding our economy to thrive. Quote Link to comment Share on other sites More sharing options...
Richlist Posted Tuesday at 09:11 PM Report Share Posted Tuesday at 09:11 PM I think landlords who intend to remain 'in the game' would probably do well to think positive. I read an article recently that said something along the lines of....Landlords should innovate & improve. They should navigate the changes effectively and will have a better chance of emerging stronger in an evolving market. Think more glass half full than glass half empty. Quote Link to comment Share on other sites More sharing options...
Melboy Posted yesterday at 07:05 AM Author Report Share Posted yesterday at 07:05 AM 9 hours ago, Richlist said: I think landlords who intend to remain 'in the game' would probably do well to think positive. I read an article recently that said something along the lines of....Landlords should innovate & improve. They should navigate the changes effectively and will have a better chance of emerging stronger in an evolving market. Think more glass half full than glass half empty. Strong words indeed but the words are empty words when successive governments keep beating landlords over the head with more legistlative financial rules which costs them money which pushes tenants rent up. This government and the previous government have no room for the private landlord and they have made that quite clear. Â Â Â Â I personally have not made any attempt to sell up even though the thought has been there but in the next 3 months I am going to have to increase my affordable rents up to a much more realistic value as rental property prices in my location has increased dramatically. I'm not looking forward to the conversations, Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted yesterday at 03:24 PM Report Share Posted yesterday at 03:24 PM Methinks the greatest issue of the ongoing tenant protections, is the difficulty and ex pence of getting bad 'uns out. If there were were confidence of getting a court date w/o a lengthy wait, and then confidence that a landlord might get some consideration when there, it might not feel such a dangerous game to be in. Quote Link to comment Share on other sites More sharing options...
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