How does Buy to Let END!

[spygirl]

Just now, One percent said:

She was adamant about the changes and even named the current plicy/legislation. Dunno. She reckons that she needs to get it sold as the changes come in in April. 

Sounds confused.

The changes on offsetting mortgage interspayment agains trent are pretty much all in place.

These are the killers for IO BTL.

Theres been some messign with tapering but they are not huge. You were always at risks with CGT on property as its all or nothing when selling.

 

 

 

https://www.theguardian.com/money/2019/apr/29/im-confused-about-renting-and-changes-to-capital-gains-tax

[One percent]

Just now, spygirl said:

Sounds confused.

The changes on offsetting mortgage interspayment agains trent are pretty much all in place.

These are the killers for IO BTL.

Theres been some messign with tapering but they are not huge. You were always at risks with CGT on property as its all or nothing when selling.

 

 

 

This is the bit i think, from here

https://thepeloton.co.uk/capital-gains-tax-changes-2020/

 

Disposing of a former home

The new rules shouldn’t apply to you if you are selling your only or main home if you’re eligible for full private residence relief. This exempts you from paying capital gains tax. However, the rules are also changing for those who are disposing of a rental property that was once their home. Currently, private residence relief for landlords renting out their former homes can claim capital gains tax relief on property sales for up to 18 months after moving out. From April 2020, this will be reduced to nine months.

When disposing of a property that was formerly the landlord’s home, capital gains tax is only applied to the value that the property went up by in the period when the landlord wasn’t living there. While it’s currently possible to add another 18 months to this, it will be reduced to nine months from next year. It was previously cut from 36 months to 18 months in 2014.

For example, under the current rules, if you have owned your property for ten years and live in it for two years, you would pay capital gains taxed based on six and a half years of capital gains. This is the eight years you didn’t live in the property, less the 18 months current relief allowance. But if you were to dispose of a property with the same circumstances from April 2020, you will be taxed on seven years and three months of capital gains.

Under the new changes, there will also be changes to lettings relief. Landlords who sell their former home currently have up to £40,000 of their gains exempt from capital gains tax. This is per person, so it means that married couples can claim up to £80,000. However, the changes to capital gain tax rules will mean that this exemption only applies to landlords who still live in the property with their tenants. Absentee landlords will no longer qualify for this.

[spygirl]

Yeah, thats less BTL more bu a new place and rent out the old.

'Accidental' LL stuff.

 

 

[sleepwello'nights]

2 minutes ago, One percent said:

She was adamant about the changes and even named the current plicy/legislation. Dunno. She reckons that she needs to get it sold as the changes come in in April. 

The rate to be charged doesn't change in 2020. There are changes: https://www.gov.uk/government/publications/changes-to-ancillary-reliefs-in-capital-gains-tax-private-residence-relief/changes-to-ancillary-reliefs-in-capital-gains-tax-private-residence-relief

Other proposed changes are due to be implemented from April 2020 but are still under consultation (with the results due later in the summer). These are potentially significant and could affect decisions about selling properties or making them available to let.

1.       Changes to Private Residence Relief (PRR)

From April 2020, this relief will apply to the full period a taxpayer lived in the property as their principal residence plus the final 9 months of occupancy (unless they can claim special circumstances, such as a disability or having to move into care). This is down from 18 months (and 36 in 2014)

2.       Changes to Letting Relief

This is currently the lower of:

• The amount of gain attributable to the letting proportion of the property
• The amount of PRR that can be claimed
• £40,000

From April 2020, this relief will only be available to people who were sharing occupancy of a property, as their main home, with a tenant throughout the period of letting. This will affect most people who rent out a property that they’ve previously lived in, as it will make more of the capital gain on their property assessable to CGT.

[One percent]

1 minute ago, sleepwello'nights said:

The rate to be charged doesn't change in 2020. There are changes: https://www.gov.uk/government/publications/changes-to-ancillary-reliefs-in-capital-gains-tax-private-residence-relief/changes-to-ancillary-reliefs-in-capital-gains-tax-private-residence-relief

Other proposed changes are due to be implemented from April 2020 but are still under consultation (with the results due later in the summer). These are potentially significant and could affect decisions about selling properties or making them available to let.

1.       Changes to Private Residence Relief (PRR)

From April 2020, this relief will apply to the full period a taxpayer lived in the property as their principal residence plus the final 9 months of occupancy (unless they can claim special circumstances, such as a disability or having to move into care). This is down from 18 months (and 36 in 2014)

2.       Changes to Letting Relief

This is currently the lower of:

• The amount of gain attributable to the letting proportion of the property
• The amount of PRR that can be claimed
• £40,000

From April 2020, this relief will only be available to people who were sharing occupancy of a property, as their main home, with a tenant throughout the period of letting. This will affect most people who rent out a property that they’ve previously lived in, as it will make more of the capital gain on their property assessable to CGT.

Yep, quoted it above. Its this bit that is going to get her. 

[Wight Flight]

Are we entering the 'final fool' phase?

In my in box this morning.

https://www.thebuy2letshop.com/nhp_solus_12112019_msg_h2i_lp_v3?mc_cid=eae2355ea7&mc_eid=f72d67a7cb

 

Quote

The UK's First Assisted Buying Scheme for BTL Investors

What are the Features & Benefits? Only a 5% Deposit required by you instead of the Normal 25% Deposit 20% Deposit paid by unique Help 2 Invest (H2I) concept 100% of Rental Income retained by you Tranche 1 - £4,000,000 Help 2 Invest Fund available on Special terms Limited number of High Quality Investment Grade Properties First Come First Served Open to Existing Landlords and New Landlords Why Should you use Help 2 Invest? You don't have enough for a 25% deposit yourself You want to make higher monthly profits by investing less of your own money You want to buy more properties with less risk of capital invested You want to buy more properties with your available funds You want to buy more valuable and desirable properties than you would normally be able to afford You want to invest in properties that would likely attract a better quality of tenants ... AND ... You want to get 16:1 leverage* on your money rather than 4:1 with standard Buy to Let Because you know that using other peoples money multiplies your returns more   For more information on the Help 2 Invest Scheme,  CLICK HERE!

 

[Iamcynical]

Who exactly is going to pony up the 20% then? 

That website looks iffy.  In the kind of way that makes me think the only real money (the 5%) will just vanish.. 

[spygirl]

1 hour ago, Wight Flight said:

Are we entering the 'final fool' phase?

In my in box this morning.

https://www.thebuy2letshop.com/nhp_solus_12112019_msg_h2i_lp_v3?mc_cid=eae2355ea7&mc_eid=f72d67a7cb

 

 

It starts off so positive.

https://www.propertytribes.com/can-recommend-company-like-buy2let-shop-help-source-t-14136-5.html

If only I thought of 'using other peoples money to invest!' its soo obvious now, I feel a total dick.

Then as the thread continues over the years ....

1 minute ago, Iamcynical said:

Who exactly is going to pony up the 20% then? 

That website looks iffy.  In the kind of way that makes me think the only real money (the 5%) will just vanish.. 

Oh! Youve given he secret away!

[UnconventionalWisdom]

Using other people's money to multiply your return. Yeah, on the way up. They dont mention that it also multiplies losses 

[spygirl]

On 25/03/2019 at 08:08, spygirl said:

IO BTL LL going bust.

Tenants buying property for knocked down prices.

 

https://www.dailymail.co.uk/money/buytolet/article-7697243/Buy-let-repossessions-nearly-DOUBLE-just-one-year-official-figures-reveal.html

Quick lesosn in banks risk weighting.

Bank have never lent to IO BTLers, so they never had any repos, so they priced the IO BTL loan low, lower than OO.

 

IO BTL fuckits start failing due to all sorts of reasons. Repo/default rate shoots up, so banks have to increase their 

Any bank with a IO BTL boo needs to be moving their IO BTL rate rapidly towards 10%, so they get them off the books ASAP..

 

[spygirl]

Just now, Tdog said:

800 out of a couple of million is an irrelevance. When it gets to 5 figures let me know.

~20% of BT LL have 80% of the BTL stock.

The ones being repod are the BTLers with several.

 

[spygirl]

2 minutes ago, Tdog said:

Where does it state that?

Second it is 800 out of a couple of million BTL mortgages which is 0.04% .... an absolute irrelevance. 

I doesnt.

I know the distribution of BTL loans.

Its not MrnMrs 1 BTL being repo'd.

Its MrnMrs 10+ BTL.

[spygirl]

9 hours ago, Tdog said:

So the only way BTL ends is if there is a Labour govt judging by their manifesto today.

Cant quite remember Blair, Cameron, Brown or Mays govt offering such common sense in relation to landlords.

 

https://www.simplelandlordsinsurance.com/landlord-hub/guides/tax-relief

Announced in the Summer Budget of 2015, and introduced on 6th April 2017, Section 24 is an amendment to UK Tax Law.

[spygirl]

IO BTL, the PITA one, was created as result of cretins Brown gormless bank regulations.

The 1988 housing is irrelevant.

The chart shows numer rental units. They barely change 85 -> 2001

It as the lobby by ARLA that got banks to create a class of loans in 96.

And there the loan, sat, barely sold til about 2000, where, as a result of idiot Brown, they ran out of OO so started selling idiot IO BTL loans, which ramped up in 2002.

 

[MrXxxx]

34 minutes ago, spygirl said:

IO BTL, the PITA one, was created as result of cretins Brown gormless bank regulations.

<img alt="Renting_growth_3079969c.jpg" class="ipsImage" data-ratio="46.30" height="213" style="height:auto;" width="460" data-imageproxy-source="https://secure.i.telegraph.co.uk/multimedia/archive/03079/Renting_growth_3079969c.jpg" data-src="https://www.dosbods.co.uk/applications/core/interface/imageproxy/imageproxy.php?img=https://secure.i.telegraph.co.uk/multimedia/archive/03079/Renting_growth_3079969c.jpg&key=793bd615f41ee68a81c6a6cd13a170f935f341c0bb73c34ac7ebb870ad586d44" src="https://www.dosbods.co.uk/applications/core/interface/js/spacer.png" />

The 1988 housing is irrelevant.

The chart shows numer rental units. They barely change 85 -> 2001

It as the lobby by ARLA that got banks to create a class of loans in 96.

And there the loan, sat, barely sold til about 2000, where, as a result of idiot Brown, they ran out of OO so started selling idiot IO BTL loans, which ramped up in 2002.

 

Be interesting to see if he ( or any of his team at the time) now has any `sleeping` directorships in this area?

[spygirl]

Just now, MrXxxx said:

Be interesting to see if he ( or any of his team at the time) now has any `sleeping` directorships in this area?

Nope.

Brown is perosna non grata everywhere -UK and international.

Noone ever wants to work or be in the same room as him.

Its really quite a remarkable achievement.

[MrXxxx]

52 minutes ago, spygirl said:

Nope.

Brown is perosna non grata everywhere -UK and international.

Noone ever wants to work or be in the same room as him.

Its really quite a remarkable achievement.

Well, unless you are HRH Prince Andrew!

[spygirl]

2 minutes ago, MrXxxx said:

Well, unless you are HRH Prince Andrew!

https://gordonandsarahbrown.com/

Gordon Brown has warned it will take years for Britain to come together – with 77 per cent of people now believing the country is more divided than ever.

It will take decades to recover from your gormless splurge 2002-2008.

We must rescue NHS from damage done by both Conservatives and the SNP

 

[spygirl]

On 24/04/2019 at 18:20, One percent said:

An old school friend of mine (thick as mince) is kicking off on Facebook about this

https://www.scarborough.gov.uk/home/housing/selective-licensing-scarborough-central

On 5th November 2018, the council approved the designation of a selective licensing scheme for all privately rented properties within parts of the Castle, Central  and North Bay wards in Scarborough. The designation comes into effect on 1st June 2019 and will last for a period of 5 years up until 31st May 2024.

The area of designation will be known as Scarborough Central and is the second area to be designated for selective licensing in Scarborough. The first area was designated in July 2017 and covers parts of Castle and North Bay wards and is known as Scarborough North.

The scheme requires landlords who privately rent out properties in the designated area to obtain a licence from the council. Landlords will be required to meet a range of licensing conditions, including safety checks, and that they have appropriate management arrangements in place.

The standard licence fee is £550 for a single household property. An extra £100 per household will apply if the licence is for a property that contains more than one household.

 

https://www.thescarboroughnews.co.uk/news/crime/hunmanby-landlord-fined-ps1384-failing-selectively-license-properties-victoria-road-scarborough-1348028

A landlord from Hunmanby has been fined £1,384 for failing to selectively license properties he owns in Victoria Road, Scarborough.

On 17 December, the council’s Cabinet approved the business case to extend Selective Licensing into parts of the Weaponness and Ramshill Ward in Scarborough. An extensive public consultation on this shall be undertaken with residents, landlords, tenants, businesses and other stakeholders between January and the end of March 2020.

[spygirl]

On 15/04/2019 at 13:52, spygirl said:

I watching the estate of a a scabbyLL who dropped dead.

There seems to be a fair few who've bought up several 10s of places for slumlording.

All IO.

All with no obvious buyers, at elast not at 50% off the price they paid.

 

 

The big old vicarge, bought when he was alive n banks were lending him millions is now up for sale.

His estate must be a clusterfuck.

On 15/04/2019 at 23:40, leonardratso said:

meanwhile rogue landlord database is tumbleweeds for a year, 4 discretionary notes on it, but not public like was touted. Absolute load of swine flu prep.

Nope.

Scabby council are dping large fines. Plenty of courtcases in motion.

[spygirl]

It ends when they are taxed out and there are no buyers.

https://www.gazettelive.co.uk/news/teesside-news/damp-falling-apart-broken-heating-17659065

In Stockton town centre, 45% of all properties are privately rented.

This figure stands at 44% in Thornaby.

Pre io btl, id guess tge percentages were 10%, maybe 20% tops.

Id guess tgere are some rentals not being counted.

The start of io btl going busy and banks taking a hit on their loabs will see io btl apr go sky high.

Io btl loans are commercial lending. If the bank gets cold feet it can ask for its money back, end of month.

[spygirl]

Posted August 3, 2015

Here's what I think - A goodbye to all that buy-to-let

And good riddance too. Sell now, sell everything.

https://www.housepricecrash.co.uk/forum/index.php?/topic/205887-a-goodbye-to-all-that-buy-to-let/

 

Lets celebrate Gideon and the Treasury who free the under 45s from life long serfdom imposed by cunt Brown and rest fo the 'socialist' LL scum.

That post is almost 5 years old.

Any IO BTL who acted on it would have had time to exit their position with some solvency left.

No chance now.

https://www.theguardian.com/money/2020/feb/08/britains-buy-to-let-boom-is-over-we-should-rejoice#comments

~75% of IO BTL were in towns where BTL were the only buyer - see XYYs various comments on Co Durham towns.

These idiot double the cost of crap terraces from 2002-20008ish.

These terraces are rapidly ging back to ~1995 prices.

The average 'its me pension' BTL will a leveraged portfolio in Grismby, Co Durham, Boro, etc etc. Are facing capital loses of 30-50%.

And tax on income/rent of 30-50%.

These idiots were operating on yields/margins of sub-5%.

 

 

 

[Loki]

There might be a lot less Chinese students needing digs very soon.

[spygirl]

2 hours ago, Loki said:

There might be a lot less Chinese students needing digs very soon.

Or more, depending how it goes ....

[Wight Flight]

6 hours ago, spygirl said:

Or more, depending how it goes ....

Or fewer, depending on how much you care for our language.