It’s official – NO NEED to refinance when incorporating into a limited company

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HMRC CONFIRMS you do not have to refinance all your properties when you incorporate your portfolio into a Limited Company.

In this video below, Mark Alexander from Property 118 & I, Ranjan Bhattacharya, break down exactly what this means for property investors!

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LATEST: ‘No plans for national landlord licensing’, promises housing minister

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Landlords have been reassured that there’s no national licensing scheme in the pipeline after the government again rebuffed proposals made by various housing groups and think-tanks.

In answer to a parliamentary written question from Charlotte Nichols MP about whether private landlords could expect a new framework, Housing Minister Christopher Pincher said there were no current plans for a centrally based scheme.

He told her: “The Government is committed to delivering a private rented sector that works for everyone and balances the needs of landlords and tenants.”

He added that it was working with local authorities to raise standards in the private rented sector. “Local authorities must license Houses in Multiple Occupation where five or more people from two or more households share facilities.

“Local authorities also have the power to license different types of privately rented properties through additional licensing or selective licensing schemes.”

The National Residential Landlords Association has welcomed confirmation that there won’t be a national scheme.

A spokesperson tells LandlordZONE that licensing simply imposes costs on good landlords while bad landlords continue to operate under the radar.

“What is needed is greater resources for councils to enforce the wide range of powers they already have, using the large volume of data available to them to identify landlords of rented properties,” he says.

Housing groups often quote the Rugg report from 2018, which suggests that all property let for residential purposes should be required to provide an MoT-style licence or certificate.

The Evolving Private Rented Sector: Its Contribution and Potential report suggested that if adopted, it wouldn’t be legal to let a property without this document, which would integrate electrical, gas safety and energy efficiency requirements, as well as assessments for a basic minimum standard for habitation check.

Read more about national landlord licensing schemes.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: ‘No plans for national landlord licensing’, promises housing minister | LandlordZONE.

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LATEST: MPs call for new fund to pay landlords who let students quit tenancies early

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A cross-party group of MPs and peers has suggested that students should be allowed to leave contracts more easily and has called for a new council tax fund to subsidise landlords for empty properties.

It says landlords would then avoid paying charges for releasing tenants from their contracts.

It also wants the government to work with landlords to introduce measures increasing flexibility in re-letting accommodation to different types of tenants without a permanent licensing change.

The group believes students urgently need financial assistance through an emergency hardship fund and that they deserve full compensation for rents when they haven’t been using accommodation due to lockdown measures.

Hardship

This fund would also provide support for students experiencing hardship as a result of lost income from term-time jobs in retail and hospitality.

The report says the approach is fairer and more effective than any general reduction in tuition fees.

It adds: “We believe that an additional sum more than doubling existing student premium funding, of £256m, would be required. Applying the Welsh approach would suggest a figure around £700m for England.”

It has heard from universities, accommodation providers, private landlords, the National Residential Landlords Association, student unions and students across the UK.

The report says that among those it quizzed, there was a general view that support should go to students directly, rather than to landlords, and that this would be best addressed through a substantial increase in hardship funds.

It adds: “We appreciate that our recommendations involve significant government spending, although not in the context of the overall costs of the pandemic, but we would emphasise the major financial costs incurred by universities, landlords and students themselves.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: MPs call for new fund to pay landlords who let students quit tenancies early | LandlordZONE.

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‘No fault’ evictions ban delayed until Covid is over, minister tells landlord chief

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The much-debated Renters Reform Bill that is expected to ban Section 21 ‘no fault’ evictions has been kicked into the long grass by Covid, housing minister Christopher Pincher (pictured, below) has revealed.

His comments were made to National Residential Landlord Association chief Ben Beadle (pictured above), who reports that it’s now unlikely that the reforms the bill is due to bring in will take place now until after the pandemic is over.

Speaking during the NRLA’s inaugural ‘Listen Up Landlords’ blog hosted by landlord and broadcaster Richard Blanco (pictured, above), Beadle said the government will now wait for the economic and social situation to stabilise before attempting any major PRS surgery.

“I don’t think we’re going to see social and economic stability any time soon so I think what we’re looking at is some sort of bridge between what we have now and the Renters Reform Bill,” says Beadle, who reminded listeners that the bill has yet to be formally published never mind begun its passage through parliament.

Bills normally take approximately a year to gain royal assent and pass into law, so an outright ban on no-fault evictions is unlikely before late 2022 at the earliest.

“But we know it will include measures to abolish Section 21 evictions and, whether landlords like it or not, that has widespread political support,” says Beadle.

He also said the NRLA understands the ban will not be retrospective and will only apply to new tenancies, and that he hoped it would also tidy up many of the existing pain points in the evictions process.

Once the bill does become law, it will create a new type of tenancy that can only be ended forcibly by a landlord via a modified Section 8 notice eviction which will cover rent arrears, anti-social behaviour and a landlord moving back into or selling their property.

Read more about the Renters Reform Bill.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘No fault’ evictions ban delayed until Covid is over, minister tells landlord chief | LandlordZONE.

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Residential to Ltd co for capital raising?

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I have a 10 property BTL portfolio in a Ltd Company. I want to expand, but my lender option is compromised by their current policies.

My own home is unencumbered, but I’m being rejected for finance on that because “my income is from property”.

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The looming David and Goliath battles of commercial rent arrears

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In a world where significant constraints are being placed on a landlords’ ability to recover outstanding rents, many suspect that some tenants are using the crisis to avoid paying, or avoid paying in full. This when it is claimed they can easily afford to pay, especially in the case of large international corporations.

Landlords in England and Wales (Scottish legislation differs) still retain the ability to recover full rent and other sums due to them under commercial leases, but practical difficulties often prevent this. Landlords’ urgent cash flow issues are often not helped by the fact that payments may be deliberately withheld, coupled with long delays in court proceedings.

Section 82 of the Coronavirus Act 2020 still applies. It prevents any major threats to tenants’ tenure through lease forfeiture in England and Wales between 26 March 2020 and 31 March 2021. This is whether by court proceedings or peaceable re-entry, for the majority of commercial leases, by reason of non-payment of any sums due under the lease.

Depending on the circumstances however, landlords still have other options which might include recovering sums owed by tenants of their commercial properties from guarantors, former tenants, recovering directly from any subtenants, or through going to court for debt recovery proceedings.

Last year the government published a code of practice for landlords and tenants of commercial property across the UK. It has been endorsed by a number of industry organisations including the RICS, but it is voluntary. The main principle of this is “transparency and collaboration”, the government’s aim being to encourage landlords and tenants to act “reasonably and responsibly” whilst the crisis lasts.

A recently reported court case illustrates the point about the alleged unequal balance of power between smaller-scale landlords and large corporations. Fast-food giant Burger King, owned by Restaurant Brands International, a Canadian-American multinational fast food holding company, itself backed by Brazilian-American multibillion-dollar investment firm 3G Capital, is being pursued by one landlord over unpaid rent.

The UK arm, Burger king Ltd, has proposed that its quarterly rent due from last March be waived altogether, rent due from last June be discounted by 70%, and a new lease arrangement entered into whereby rent is linked to sales (turnover rents) after that.

The UK subsidiary of Brands International leases its restaurant properties from landlords and sublets them to the chain’s franchisees. According to The Sunday Times, it is claimed that the company owes £461,174 to the owner of its branch in Queensway, west London.

The court filing by the claimant landlord argues that because of the big difference in the size of the parties, it considers that a more appropriate arrangement, in line with the code of practice, might be a deferral of some of the rent to be repaid over a period of time.

Given the size of the commercial rent arrears problem, which has been building up since the start of the pandemic, the landlord – tenant stand-off is threatening to explode over coming months. With the tenant protection measures still in place for another couple of months, and the courts likely to be overwhelmed when restrictions are lifted, there seems little by way of relief in the short-term.

Neither party in the above dispute has made themselves available for comment.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The looming David and Goliath battles of commercial rent arrears | LandlordZONE.

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Informing Local Authority of EICR?

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Re. EICRs, from the .gov site click here

We must:- Supply the local authority with a copy of this report within 7 days of receiving a request for a copy.

-Supply written confirmation of the completion of the remedial works from the electrician to the tenant and the local authority within 28 days of completion of the works.

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