Landlords to be responsible for tenants tobacco tax evasion?

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Just received the following from Local Landlords Association (Devon); HMRC consultation on preventing tobacco duty evasion: property implications HM Revenue & Customs (HMRC) has published a consultation on proposals to tackle tobacco duty evasion and other excise duty evasion. This follows an informal consultation in which several respondents suggested imposing a duty of care on… Read more

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Increasing a mortgage and claiming interest relief

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HMRC Quote; If you increase your mortgage loan on your buy-to-let property you can also treat interest on the additional loan as a revenue expense, but only up to the capital value of the property when it was brought into your letting business. HMRC Example; You purchased a buy-to-let property for £120,000 with a mortgage… Read more

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Evicting Residential Tenants

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Tenants seeking re-housing: It is a common occurrence for landlords that tenants approach their local authority to be re-housed and then ask the landlord to evict them. Tenants who are claiming re-housing by the local authority, from the position of a private tenancy, will be told not to leave their accommodation until they are evicted. […]

… LandlordZONE.

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Boundary dispute time limitation?

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My sister in law owns half of a pair of semidetached houses. Last year the property, previously owned by a college was sold to a property developer. They have told my family that the boundary is in fact in the wrong place, even though it must have been like this for over 20 years. They… Read more

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The psychology of scamming

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What is your image of someone who is the victim of a scam?  Take a few moments to think about this before reading on. I am sure we all have the image of the gullible person with the street wise con artist slyly taking their money.  Well think again.  Research conducted by Exeter University and… Read more

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Longer leases for PRS tenants

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New figures prove landlords are delivering longer tenancies without the need for new laws. Tenants in private rented housing are staying longer than ever in their current homes as the proportion of PRS households with children increases. According to the English Housing Survey for 2015/16, the average length that tenants have been in their current […]

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Foreign National tax implications

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I am a British National with a small Buy to Let portfolio. I am married to an Egyptian national, who has no residency in UK, though is a regular visitor. He is therefore not a UK tax payer and has no UK income. My UK income is only from the BTL’s. If he buys a… Read more

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Buying a second property – What you need to know for 2017

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With so many drastic changes taking place in 2017, there have also been plenty of changes to the housing market. Mortgage tax relief changes, stamp duty costs and Brexit are just a few of the things to be wary of when buying a property this year.

So, If you have been thinking about purchasing a second property in 2017 but don’t know where to begin, don’t worry! North West property solicitors Abacus Law are here to lend a helping hand.

Equity or buy-to-let mortgage?

Equity – Here you can remortgage your first property, using the equity to put a deposit down on the second property. Where possible, you could use the equity to buy the second property outright.

If you do decide to take out a second mortgage, you will need to demonstrate to your provider that you will be able to pay off both houses.

Buy-to-let mortgage -This option should be implemented if you plan on renting the second property out. A minimum deposit of 24-40% will be necessary to secure a good deal. However, from this year, the Prudential Regulation Authority (PRA) will be rolling out new rules for the buy-to-let market. This will put stricter underwriting standards on buy-to-let mortgages.

A new mortgage tax relief

New tax relief for landlords are being introduced as of April 2017. Presently, landlords can deduct the cost of items from their rental income such as repairs, mortgage interest and estate agent fees.

When the new tax relief kicks in, landlords will still be able to deduct these expenses but taxpayers on a higher rate can only deduct a small proportion of their mortgage interest rate costs from their rental profits. However, don’t fear, as most basic rate-paying landlords won’t be affected.

Stamp Duty

When you buy your second property, there will be an additional 3% charge to the standard rate of Stamp Duty Land Tax.

• 3% on the first £125,000
• 5% on the amount between £125,000 to £250,000
• 8% on the amount between £250,000 to £925.000
• 13% on the amount between £925,000 to £1.5 million
• 15% on anything over £1.5 million

There have been many calls for this controversial stamp duty land tax to be reversed. Introduced in April 2016, this is something you will have to factor into your budget for 2017.

Brexit

With so much uncertainty over what leaving the EU will mean for the property market, some experts believe in the long run that possible restrictions on migration may lead to mean less demand for rental properties.  This is a risk to take into account if you intend to let the Property to tenants following Brexit as it may lead to a reduction in rental values.

Location

When you are thinking about buying your second property, your investment will always be more valuable if you take the time to research the areas. For instance, Liverpool’s Baltic Triangle is set to undergo huge developments. This sort of knowledge on areas set to undergo development may yield rewards in the future.

Legal implications

Purchasing another property in 2017, especially buy-to-let, can be a complicated process, not to mention the legalities that come with being a landlord. It’s always advisable to seek the assistance and experience of a solicitor well versed in property law.

… LandlordZONE.

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Three-Dimensional Tax Planning With IHT Benefits (Case Study)

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Mr & Mrs Smith own their property portfolio jointly and each account for 50% of their income and profits on their self-assessment tax returns. This is what I would call two-dimensional accounting. It is very normal. When their twin daughters were about to reach the age of 18 they approached a tax consultant to see… Read more

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Upskilling the landlord community

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Landlord Knowledge: LandlordZONE® has been involved in a major protect by Direct Line for Business (DLB) which advises UK landlords on relevant issues involved with letting property. Direct Line for Business has developed an interactive content hub for landlords with the involvement of LandlordZONE® and its impressive 30+ years’ property letting & management experience! Direct […]

… LandlordZONE.

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