How does Buy to Let END!

[Wight Flight]

1 minute ago, ccc said:

Sky golf. Started early as wind looking too much for later. 

Ta. I don't subscribe to that as i refuse to pay for footballers.

[Wight Flight]

1 minute ago, spygirl said:

Im not sure.

The funding tends to be limited, both in time n dollops.

 Middlesbrough council decided that housing migrants was a sure fire money spinner.

The terms then were home office would provide funding for 2 or 3 years

The sensible voice i.e. anyone not a Labour councillor questioned    what happened after 2-3 years is up.

But no, migrants would bring money and prosperity to the town.

This was only 10 years ago.

Boro is an even more massive shithole now.

https://www.thenorthernecho.co.uk/news/23571025.plans-house-1-000-asylum-seekers-middlesbrough-barge/

 

True. But with three kids this one would bring loads of benefit dosh to spend in the local economy. Possibly a net benefit to the area.

[spygirl]

Just now, Wight Flight said:

True. But with three kids this one would bring loads of benefit dosh to spend in the local economy. Possibly a net benefit to the area.

Laayds! is full of single mums on benefits.

Im not seeing a huge improvement.

In fact,. the size of the working age benefit is a massive drag on the economy in many ways.

USA didnt become  an economic superpower by having loads of teachers, social workers and DV wimmin.

 

 

[spygirl]

• The Rise and Rise of Landlord Limited Companies

https://www.landlordtoday.co.uk/tax-and-finance/2023/7/the-rise-and-rise-of-landlord-limited-companies

• Jo Westlake
• 15 July 2023 11:08 AM

The whole incorporated thing is another layer of complication and accountancy fees.

When I started out as a landlord I didn't know how many houses I would eventually own. My accountant was adamant buying them in personal names was the best thing to do. Back then the tax system was totally different and none of the super enhanced tax rates that only apply to landlords had been invented.

My most recent two purchases have been through a limited company but mortgages have been so difficult to obtain I finished up paying cash for both. It was far easier to release equity from personally held properties to fund the company. One of the flats had a very short lease and I had intended mortgaging it after extending the lease and doing a full renovation but the mortgage products and extra legal costs are crazy. The other one would have been mortgaged if the broker hadn't ticked the wrong box on the application form and then failed to correct his mistake before rates shot up. The lender insisted on us using one of only 8 conveyancing companies in the whole country that they approved for limited company transactions. We've used the same lender for personal remortgages and thousands of solicitors are fine for that.

The good bits about having a company are that the money can be paid as salary, which then gives a NI credit, can be paid into a SIPP (which then extends your tax code) or straight into a pension. Either way it's better from an old age and death point of view. The trivial benefits and company Christmas do are nice.
I basically don't understand all the other beneficial things that might happen if we incorporated all our personally held properties. I keep buying books and losing the will to live about a third of the way through. The thing that really scares me is reading articles about how landlords paid large fees for advice that was wrong and now face huge financial penalties to sort it out.

[spygirl]

Same person.

One for @sancho panza

The lenders I use are about as mainstream as they come. TMW (part of Nationwide), Barclays, Leeds Building Society, Coventry, Birmingham Midshires, Paragon and Fleet. None of them are exactly unknown or specialize in bad risks

[Wight Flight]

2 minutes ago, spygirl said:

My most recent two purchases have been through a limited company but mortgages have been so difficult to obtain I finished up paying cash for both. It was far easier to release equity from personally held properties to fund the company.

I hope he isn't claiming any tax relief on the extra interest paid on these extended loans.

[spygirl]

I'm not even sure if the point full fact are trying to make.

https://fullfact.org/news/angela-rayner-buy-to-let/

Rayners a moron, however, if she'd said her lines correctly and included 'private'

Social rents have much better tenancies.

Prs are a massive problem.

Great one from Diane abbot.

https://fullfact.org/health/diane-abbott-amanda-pritchard-pay/

 

 

[Wight Flight]

This has often been suggested as an issue, but here it is in black and white.

Quote

However, some landlords like myself cannot easily exit the market because we bought back in the 1990s and would face punishing levels of Capital Gains Tax on properties held in our names because there is no indexation allowance for these properties, in contrast to those held in limited companies

https://www.property118.com/why-labours-renters-charter-is-a-charter-for-disaster/

[Wight Flight]

And this one ...

Quote

I have had a tracker mortgage since purchasing 20 years ago. Obviously when rates were low I made a profit. However at my present rate (1.75% over base) a small loss is inevitable.
I put the property on the market and had very little interest despite property in the same block always selling quickly.
It was costing about £1000 per month to leave it empty, hence I relet the property.
I am in a position to pay off the mortgage next April when my bond matures.Should I do this then the tax on the income will increase a lot due to having no mortgage.
I am a pensioner and the mortgage has 4-5 years left before expiring. My other concern is that judging by the poor shape the economy is in it could take years ( if ever) before property sells at a decent price.
The property is in my sole name therefore I am unable to use my wife’s tax allowance. Neither my wife or myself work . I am taxed on savings and the BTL. The income received is above the tax free allowance.
Would it be beneficial if I were to gift the property to my wife so her tax allowance would negate the tax I have to pay. All savings interest is my sole name and it’s difficult to open joint savings accounts due to us living outside the UK.
I am receiving good interest on my savings and think it worth considering not paying off the mortgage and taking a small loss on the rent.
Would the mortgage company extend the mortgage after it expires. I am 69 years of age, always paid the mortgage on time and have considerable equity in the property.

So drop the price you boomer. Said not one comment.

https://www.property118.com/225000-landlords-in-trouble-as-mortgage-rates-soar/

 

[reformed nice guy]

27 minutes ago, Wight Flight said:

This has often been suggested as an issue, but here it is in black and white.

https://www.property118.com/why-labours-renters-charter-is-a-charter-for-disaster/

Capital gains tax has a clue in the name about how the landlord should be paying for it!

[Andersen]

 

Mixed reports, some say BTL are booming, others say it's tanking 

Bonanza for BTL landlords as Brits left homeless as govt outbids them for private rentals https://www.dosbods.co.uk/topic/25667-98-year-old-d-day-veteran-told-to-fuck-off-by-dorset-council/?do=findComment&comment=1982331

From late last year - see link title https://www.dosbods.co.uk/topic/22713-cambridge-btl-landlords-shitting-themselves/

See link title https://www.dosbods.co.uk/topic/25298-are-struggling-btlers-going-to-try-their-luck-with-airbnb-bookingcom/

My feeling is that with increased cost to stay legal (inspections, registration schemes..) plus having to invest on older properties so they meet the new "minimum renting standards" (tighter EPC limits, etc) there are now better options for income if you have cash. Increased interest rates + reduced profits make it uneconomical for many leveraged LL's. The future is bleak for legal LL's, for illegal slumlords it's still an money tree that keep giving.

 

[spygirl]

2 hours ago, Wight Flight said:

This has often been suggested as an issue, but here it is in black and white.

https://www.property118.com/why-labours-renters-charter-is-a-charter-for-disaster/

Punishing????

Same if theyd bought sahres outside of a tax free wrapper.

Or other assets.

Im willing to give them a tax free return - if they can show theyd not charged their  renters any rent over the years.

 

 

[spygirl]

There is a reason why a lot of btl lenders state- No benefits.

 

https://www.property118.com/tenant-has-stopped-paying-rent/

[One percent]

On 16/07/2023 at 11:22, Wight Flight said:

Ta. I don't subscribe to that as i refuse to pay for footballers.

I don’t subscribe to the tv licence as I refuse to pay for peadophiles. 

[sancho panza]

1 hour ago, spygirl said:

There is a reason why a lot of btl lenders state- No benefits.

 

https://www.property118.com/tenant-has-stopped-paying-rent/

its the naievity that amazes me

1 lender doesnt really care as the loan is secured on your primary residence/other assets even if the LL doenst know it

2 lender doesn't give help and advice on BTL evicitions-not their problem

3 judge will treat you according the law as they see it

 

 

'10:13 AM, 17th July 2023, About 10 hours ago

First thing, if you have a mortgage, go to your lender and ask for help, they will give you help and advice. The last thing you want is for your property to be repossessed. Look up everything you can about the subject, the gov website is pretty good, but read others as well.

Make a list of all the paperwork you have lost. things happen, and the judge will treat you fairly if he knows that you are a genuine person who has done all the right and legal things.
I don't understand what you are saying about the counterclaim for disrepair. Who instructed the surveyor? Also,could you explain what these so-called disrepairs are?

I recently submitted an eviction application to the court (my tenant won't move out) and in the N119 form that I could think of about the tenant and my behaviour over the past six years of the tenancy. So you must list everything you can think of too in your defence, including no rent increase in 6 years, how she stopped paying when you tried to increase the rent etc, ect. You have to defend yourself with every tool you have available to you, show the judge that you are a good, reasonable and fair person.

[AWW]

On 16/07/2023 at 13:54, spygirl said:

• The Rise and Rise of Landlord Limited Companies

https://www.landlordtoday.co.uk/tax-and-finance/2023/7/the-rise-and-rise-of-landlord-limited-companies

• Jo Westlake
• 15 July 2023 11:08 AM

The whole incorporated thing is another layer of complication and accountancy fees.

When I started out as a landlord I didn't know how many houses I would eventually own. My accountant was adamant buying them in personal names was the best thing to do. Back then the tax system was totally different and none of the super enhanced tax rates that only apply to landlords had been invented.

My most recent two purchases have been through a limited company but mortgages have been so difficult to obtain I finished up paying cash for both. It was far easier to release equity from personally held properties to fund the company. One of the flats had a very short lease and I had intended mortgaging it after extending the lease and doing a full renovation but the mortgage products and extra legal costs are crazy. The other one would have been mortgaged if the broker hadn't ticked the wrong box on the application form and then failed to correct his mistake before rates shot up. The lender insisted on us using one of only 8 conveyancing companies in the whole country that they approved for limited company transactions. We've used the same lender for personal remortgages and thousands of solicitors are fine for that.

The good bits about having a company are that the money can be paid as salary, which then gives a NI credit, can be paid into a SIPP (which then extends your tax code) or straight into a pension. Either way it's better from an old age and death point of view. The trivial benefits and company Christmas do are nice.
I basically don't understand all the other beneficial things that might happen if we incorporated all our personally held properties. I keep buying books and losing the will to live about a third of the way through. The thing that really scares me is reading articles about how landlords paid large fees for advice that was wrong and now face huge financial penalties to sort it out.

"I can't be arsed to educate myself about the supposed business I'm apparently running." 

[Boglet]

You know the thing that troubles me most about all this is that there are significant numbers of BTL chancers out there who will end up losing their own primary residence and moving into rented themselves where hopefully they will have an abject time....

...but I will never get to hear and enjoy their sob stories 😔

[spygirl]

3 hours ago, Boglet said:

You know the thing that troubles me most about all this is that there are significant numbers of BTL chancers out there who will end up losing their own primary residence and moving into rented themselves where hopefully they will have an abject time....

...but I will never get to hear and enjoy their sob stories 😔

Oh but you will.

DailyMail 2024+

'I thought I was doign the 'right thing' 'buying' a BTL ....'

Ive lost everything and live with a load of alchis in an HMO.

 

[Stuey]

On 16/07/2023 at 11:21, spygirl said:

Im not sure.

The funding tends to be limited, both in time n dollops.

 Middlesbrough council decided that housing migrants was a sure fire money spinner.

The terms then were home office would provide funding for 2 or 3 years

The sensible voice i.e. anyone not a Labour councillor questioned    what happened after 2-3 years is up.

But no, migrants would bring money and prosperity to the town.

This was only 10 years ago.

Boro is an even more massive shithole now.

https://www.thenorthernecho.co.uk/news/23571025.plans-house-1-000-asylum-seekers-middlesbrough-barge/

 

I don't think I've been as shocked by anywhere as much as Boro late May/early June when I was on jury service. Although Derby ran it close yesterday morning with tramps arguing at 08:30. 

[leonardratso]

whats that barge about? is it like cruise ship holidays for the dinghy divers? Will someone cut the ropes and let it drift out to sea?

They should park it over in france.

[Boglet]

3 hours ago, spygirl said:

Oh but you will.

DailyMail 2024+

'I thought I was doign the 'right thing' 'buying' a BTL ....'

Ive lost everything and live with a load of alchis in an HMO.

 

I do hope , some lovely sad face articles with them sat in front of a mouldy wall. I'll make a nice scrapbook.

Edited July 18, 2023 by Boglet

[Wight Flight]

1 hour ago, leonardratso said:

whats that barge about? is it like cruise ship holidays for the dinghy divers? Will someone cut the ropes and let it drift out to sea?

They should park it over in france.

They should have towed it here via France, picked up the gimmigrants on the way and saved border force the effort.

[spygirl]

Most landlords will not be selling their BTL properties

 

 

https://www.property118.com/most-landlords-will-not-be-selling-their-btl-properties/

He's right.

The banks will, after they've been repoed.

 

[No One]

On 14/07/2023 at 20:54, spygirl said:

Landlords demand high earners have guarantors as rents soar

 

Even tenants earning over £50,000 a year are being forced to turn to parents in an ‘infantilising’ housing market

 

 

On 14/07/2023 at 21:46, sancho panza said:

Im spamming this site tonight but there;'s some reet gems on it

this is ending well.....

https://www.mortgagestrategy.co.uk/news/renters-who-must-provide-guarantors-almost-doubles-goodlord/

Renters who must provide guarantors almost doubles: Goodlord  

By Roger Baird 14^th July 2023 10:02 am

The number of tenants on high incomes that are being asked by landlords to provide guarantors has almost doubled over the last three years, data from Goodlord shows.  

The rental platform’s survey says the proportion of renters earning between £50,000 and £74,999 required to provide a guarantor has jumped by 92% since 2020.  

It points out that in 2020, 1.35% of earners in this bracket were required to secure their tenancy with a guarantor, rising to 2.59% this year. 

The average salary for a full-time employee last year was £33,000, up from £31,461 in 2020, according to Office for National Statistics.   

The number of renters earning between £25,000 to £50,000 being asked to provide a guarantor has also jumped by 58% over the last three years.  

In 2020, 3.7% of tenants in this bracket were asked to provide a guarantor, rising to 5.84% of renters this year.  

   

 

 

My personal situation has become dire, currently I'm ok. As in I live with LL lodging pay a very small rent all in which is great. But as of next month I need to get my own house for family reasons which I wont go into. 

The local market for rentals is crazy, prices are up, demand is up and supply is down. Houses listed on one day get enough viewing requests that by the next the EA do not want to get more people for viewings. One girl I know told me one EA told her they got 40 people to view one house on the same day as advertised.

Another house rental, the girl doing the viewing advise me to contact the agency with my best offer. I was surprised because I have never seen bidding wards on rentals ever before,

I always knew something like this would happen, so I was prepared, which is fine, but the ferocity and rapidity of the change has took me off guard. 

Our plan, my wife and I, is to save this year in accounts paying 6% fix and maybe but in one or one and a half years time, because nothing is saving the market this time.

For now I will have to fork out to get the house.


Whilst many celebrate the demise of the OI BTL Slumlord and we wont miss them, let's not delude ourselves that the transition will be painless because it wont be.

[JoeDavola]

6 minutes ago, No One said:

Another house rental, the girl doing the viewing advise me to contact the agency with my best offer. I was surprised because I have never seen bidding wards on rentals ever before,

I always knew something like this would happen, so I was prepared, which is fine, but the ferocity and rapidity of the change has took me off guard.

Yes I think there will be a collapse in available housing that is desirable, either as a renter or buyer. Well.. I say will be, I think it's already happened.

I hope my folks don't actually sell their house as it's big enough to be a proper multi-generational house i.e. two families could live in it quite separately and not step on each others toes at all, whcih is a great asset to have in this situation.

Edited July 21, 2023 by JoeDavola