Leading private landlord moves entire portfolio to Ltd company and saves £10 million

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One of Britain’s biggest private landlords is encouraging others to follow his lead by shifting property from their own name into a company structure.

In what is thought to be the country’s largest ever mortgage transaction, Alastair Kerr (pictured) has transferred ownership of his 330 rental homes in west London, saving him more than £10m in tax and mortgage interest.

Kerr had to re-mortgage his properties on a single day to take advantage of incorporation relief rules, or face a capital gains tax bill for tens of millions of pounds.

It was a move that should also save him more than £1m in mortgage interest in the next five years, according to SPF Private Clients, which arranged the transaction.

Stamp duty saving

Stamp duty was still payable, albeit at a much lower rate thanks to the current tax break. As he completed before the 31^st March deadline, he paid tax on just the amount over £500,000 for each applicable property, plus the three percentage point surcharge.

Landlords are often criticised for owning properties that could otherwise house first-time buyers, but Kerr blames mortgage lenders for their woes.

“The market is tilted against them,” he tells The Telegraph. “In London you’ll have people comfortably paying £1,500 a month in rent but then the bank will say they can only afford a mortgage with £600 repayments. It’s quite clear that people can afford more than that.”

As well as urging landlords to re-examine their business, Kerr advises them to always have a plan B and to have enough time set aside to complete a purchase.

“Some transactions can take much longer than expected. You might think it’ll all be sorted in two or three months but you should set aside six,” he adds.

Read more about tax and limited companies.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Leading private landlord moves entire portfolio to Ltd company and saves £10 million | LandlordZONE.

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National Landlord Investment show goes online-only for THIRD time

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As a measure of long Covid has lasted now, the National Landlord Investment show has announced that it’s to stage its third event online-only event next week.

Taking place on Wednesday 24^th February, the virtual pow-wow will include 30 online seminars kicked off by a debate chaired by Paul Shamplina (pictured, below) of Landlord Action and TV show Nightmare Tenants, Slum Landlords.

He and a host of other property experts will be discussing what they think 2021 has in store for landlords including legal issues, political outlook, market forecast plus the positives and negatives facing the housing market.

Others debating these issues with Shamplina include Ben Beadle, CEO of the NRLA; property analysist and commentator Kate Faulkner and landlord Jonathan Schuman (pictured, below), MD of Magnet Properties.

The rest of the day will include back-to-back speakers and seminars offering expert advice on taxation, legal, finance, HMOs, training, management, proptech as well as investment opportunities in emerging UK property hotspots.

This event will help both seasoned investors and aspiring landlords wishing to enter the UK buy-to-let market.

“We have successfully delivered 69 live events throughout the UK and now have diversified into online,” says show founder Tracey Hanbury (pictured).

“It remains a challenging time, but we are thankful we moved into online events last year. It’s quite a departure from delivering live exhibitions, with its own unique challenges, but having already delivered two hugely successful online shows in 2020, we are in an excellent position to face whatever 2021 has in store.”

Register for free to attend the show.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – National Landlord Investment show goes online-only for THIRD time | LandlordZONE.

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When will workers return to the office?

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Brookfield, a Canadian-owned investment group, claims to have 75% of its employees are in the office in its US headquarters in Manhattan, and they apparently have been back in the office since November.

Its a pattern other companies are expected to follow, but it’s a far cry from the situation in most offices today: surveys of commercial property occupancy in the US and London show that at best only around 10% of city offices are being staffed to anywhere near that level.

According to Brookfield, regular Covid-19 testing is the answer. It is central to its strategy to get staff back into work, coupled with deep cleaning, efficient ventilation and helping staff deal with their concerns about using public transport.

Brian Kingston, chief executive of Brookfield’s real estate group has said:

“It was important to demonstrate to our tenants that it was possible to bring people to the office. It is possible to do this and do it safely.”

Whilst currently the majority of office workers remain at home, expectations are that by the summer around 50% will be back at their desks, helped by the increasing efficacy and rollout of vaccines.

But surveys show that the real estate industry, particularity in America, are being the most aggressive in bringing employees back.

Brookfield has produce a white paper to help tenants of Brookfield-owned buildings to start making preparations, now that vaccines are being distributed. Brookfield partnered with Carbon Health, a healthcare provider, to open a Covid testing facility in their head office last summer. The testing centre has been running 2 hours a day, seven days a week, since then, providing Covid tests for workers every two weeks, paid for by the company.

Workers are told to log into the Carbon Health app to go through a self-assessment process and should they exhibit any symptoms, are told not to come to the office and a doctor will contact them for a diagnosis.

Similar to the NHS app, the Carbon Health one is linked to each employee’s badge. They will not be allowed entry to the office unless that they have completed their self assessments and had their regular tests. Temperature screening devices then check them as they enter the building and the lifts.

Since June last year, Brookfield’s system has identified 42 positive Covid cases out of 750 employees, a rate of 5.6%. Immediately, nearby workers are isolated, sent home and then put through a testing regime. Brookfield says there have been no cases of community spread.

Other measures such as mandatory mask wavering unless at a desk, providing separate work cubicles in open plan offices, providing a ride-sharing system, expanding car parking spaces and developing a one-way system for the use of lifts have all worked successfully.

Ventilation and air filtration systems are being upgraded throughout the Brookfield estate incorporating technology typically used in hospitals.

It is increasingly likely that ventilation in buildings, both public and private, will be the pre-requisite technology to combat Covid in the future: a continuous upward flow of air, harmlessly taking out any virus particles with the air flow, from floor level vents to ceiling outlets, will be a major plank in the armoury against the disease.

Ventilation specialists, companies like Volution PLC, owners of brands such as VentAxia, Airtech, BreathingBuildings, are likely to be huge beneficiaries.

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EXCLUSIVE BLOG: Rental supply crisis looming without support

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It has been a tough year for us all, but as the vaccine rollout continues and the Government prepares to reopen the country, we look at the positive steps that we believe could make a huge difference to the landlords providing vital homes to let –  and the tenants living in them.

The NRLA has used its submission to Government ahead of the budget to call for a comprehensive package of financial support for landlords and tenants to avoid a rental arrears crisis.

We will continue to lobby for this and to make the case for this to help landlords and tenants through this crisis.

Landlords have gone above and beyond to support tenants through the Covid-19 crisis, but this is not sustainable long-term.

Urgent package of support needed

A package of interest-free hardship loans and grants is needed as a matter of urgency. To expect landlords and tenants simply to muddle through is not acceptable.

Research shows 840,000 private renters in England and Wales have built arrears since lockdown measures started in March last year and we need to help these people continue to pay their rent and stay in their homes.

If the pandemic has taught us anything it is the value of home and, with that in mind, we at the NRLA have joined forces with other landlord and tenants’ groups to amplify this call for help.

This includes proposals for interest free loans for tenants affected by Covid-19, to allow them to continue to pay their rent and remain in the home that they love.

This has widespread sector support, from groups including Shelter, The Big Issue, Crisis, Citizens Advice, Propertymark and debt charity StepChange.

We also need the sector to get back on its feet, moving away from the emergency measures introduced by the Government to start function as normal as the country reopens, promoting confidence in the rental market.

Rising rents

RICS has already warned rents will start to rise because of the increasing demand for properties at a time when new instructions from landlords are dwindling.

And Rightmove revealed that outside London asking rents increased in the fourth quarter for 2020 for the first time since 2011, to a record average of £972 a month.

In the increasingly popular suburbs, towns and villages, the level of available housing is lower than normal for this time of year, whilst demand is higher.

This situation could become more acute, with our own research showing a third of landlords are looking to sell some or all of their rental homes, with 56% losing cash as a result of the pandemic.

“If we are to ensure there are sufficient homes to rent we want to see positive action by the Government.”

To this end we believe landlords should be exempt from the 3% stamp duty surcharge on additional homes if the property they are buying will add to the net supply of housing. 

This new exemption would apply to landlords developing new housing, converting large properties into affordable units, changing the use of a property from commercial to residential or bringing one of the almost 650,000 empty homes in England back into use and would be a real shot in the arm when it comes to supply.

When there is a desperate need for more homes to rent the last thing we need is to have a tax on developing new homes. It makes little sense and we have made our case to the government.

Where capital gains tax is concerned we believe the Government must resist calls to make changes or risk diminishing confidence and supply even further.

It is our belief that the Chancellor should use tax more smartly to create a healthy rental market.

We hope he will support these proposals which we believe offer sensible, workable solutions to help us create a vibrant and dynamic PRS that we can all be proud of.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE BLOG: Rental supply crisis looming without support | LandlordZONE.

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Samuel Leeds slammed for ‘irresponsible’ property investment video

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Property ‘guru’ Samuel Leeds has been slammed for posting irresponsible videos that show him creeping around back gardens in the dark and flouting social distancing rules.

Another YouTuber picks apart Leeds’ proposal for a potential development and attacks him for condoning property investment meet-ups during the pandemic.

Posted by Mark Howe – a member of the Facebook group, The Truth About Samuel Leeds and Those That Use Similar Methods – it calls out Leeds for his latest ‘financial freedom challenge’ which he’s been posting while his live coaching events are banned.

In the challenge, Leeds sets out to teach Lawton Hopwood (both pictured) how to become a property developer and claims they’ll add £100,000 in value by extending the back of a bungalow.

However, Howe says it appears that neither of them have any knowledge about site finding or property development.

He adds: “If Samuel Leeds and Lawton followed [this advice] they wouldn’t have had to waste time and effort sneaking around the property in the rain, at night, without permission, causing distress to the neighbours.

Covid risk

“They would also not have had to put their families in danger by increasing the risk of contracting Covid-19.”

Howe points out that the site was refused planning permission in 2018 and says the vendor is the same developer who bought the neighbouring bungalow before extending it. He asks: “Is he stupid? Or, having failed to get planning, is he smart [enough] to sell it on to a pair who think they’re property developers?”

He adds that the bungalow went under offer three weeks before the challenge was even filmed.

The video also shows Leeds and his wife embracing and shaking hands with Lawton. Says Howe: “We are still in the middle of a pandemic, yet Samuel Leeds and his associates think that it’s okay to ignore government advice intended to save lives and protect the NHS – all for a pointless challenge.”

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Targeted financial package to help renters pay off arrears required

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Joint statement by The Big Issue Ride Out Recession Alliance, Crisis, Citizens Advice, Joseph Rowntree Foundation, Money Advice Trust, The Mortgage Works, National Residential Landlords Association, Nationwide Building Society, Propertymark, StepChange Debt Charity and Shelter:

At least half a million private renters are in arrears due to the economic impact of Covid-19.

The post Targeted financial package to help renters pay off arrears required appeared first on Property118.

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What is the definition for an Urgent Repair?

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Hi, I am trying to find a definition for what would constitute an urgent (or emergency) repair in legislation, regulations, etc

Which repairs would be considered urgent for a landlord to undertake immediately? Can anybody advise if such definition or explanation exists and where I can find it

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National Residential will solve all tenant issues and sell your tenanted properties for the best possible price

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If you’re a landlord and you haven’t yet heard of us here at National Residential [ www.national-residential.co.uk ], there’s a good chance you’ll want to. Established in 2006, we pride ourselves with our “any problem we can fix” formula, led by myself, founder and industry expert, David Coughlin.

Helping Landlords Sell

There are a few challenges landlords may face when trying to sell their properties. Difficult tenants can be top of the list, but they don’t have to be. Being a private landlord myself, with 100 properties in my portfolio, I first-hand understand the issues and challenges facing landlords today. It’s about overcoming solutions fast, but also in a way that means both the landlord and the tenant are happy. With National Residential, we’ve found the sweet spot when it comes to helping landlords sell, so we’ve become experts in taking away the stress. We know how to solve every barrier that landlords come up against, even for example when they can’t gain access to their own properties.

Can you sell my property if my tenants are a problem?

A landlord recently contacted us wanting to sell his small property portfolio in London, and added to that they were HMO properties with multiple tenants. The first challenge for one property was the tenants refusing access for both photos and viewings. They were worried that once the sale went through, they’d have to vacate. They were also worried about both COVID-19 and the hassle of viewings. So, our goal was to get the tenants on side and get the highest quality photos and video tours we could safely, and with the tenants cooperation.

Our staff persevered to build a great relationship and confidence with the tenants. We paid them to allow our agent to socially-distanced get the best photos and video possible, and we reassured them that any viewings would be safe and with one of our landlords who would keep them on as a tenant. This is exactly what we did.

For the second property, through our online video tours and auction platform, we were able to sell the HMO to another landlord, who kept the tenants, in just a few weeks.

On one of the other properties, the highest bid was from a buyer who needed vacant possession but that wasn’t a problem: we were able to pay the existing tenant £5,000 from our fee to leave voluntarily, and sign a Deed of Surrender. The buyer, tenant and seller were all happy with our win-win solution. Be it negotiating with your tenants, sorting out repairs, and even helping tenants relocate, we have the best team to do it all and have the track record to prove it.

Another of our landlords based in London gave us a small portfolio of tenanted properties in the North-East to sell. We overcame every problem and went that extra mile to get her the best prices with a fast completion.

All these properties sold within 28 days and completed in 2 – 3 months.

In our business, the majority of properties sold end up going to investors wanting to keep the tenants on. If there’s a tenant that passionately wants to stay, no problem, we’ve got thousands of buyers who are happy to buy, so we can reassure tenants that by letting us gain access, they won’t have to pack up and leave. For those properties that are being sold to owner-occupied buyers, we also have the win-win solution: we help them with both the rent and the deposit to find an alternative rental property.

We go the extra mile to get tenanted properties sold, solve all problems, and to get the best prices and complete quickly. We’re there for landlords, sellers and tenants at every step, all the way through the process.

Our mission is to help take away the stress of selling your portfolios and properties. We’ve helped so many landlords like you sell their portfolios fast, and for the best possible prices. As a LandlordZONE reader you’ll get access to our top professionals, who have the best knowledge in the business. No hassle, and no obligations, we’re here for you. Contact us today by filling out the form below.

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EXCLUSIVE: Rogue agent David Walters has left over 100 angry landlords facing losses

admin    Uncategorized     agents

More angry landlords are coming forward to share horror stories about David Walters – the property developer and agent who is now being investigated by Trading Standards, LandlordZONE can report.

Walters is believed to be illegally working as a property agent with 4PropertyUK – formerly Lettings4All – despite being kicked off the Property Redress Scheme (PRS).

He was ordered to pay more than £20,000 to landlord Amy Trumpeter for pocketing her rent and leaving her house in Oldham with furniture missing and its roof fallen in after failing to carry out repairs, the Daily Mail reported last week.

She reported him to the PRS which found that he had to pay back £5,575 in rent and a further £6,425 for repairs.

Pay up

However, he failed to pay up and, following a protracted county court battle, she’s frustrated that he only has to pay back £100 a month, despite posting photos on Facebook of exotic holidays.

But his activities have affected far more than just Trumpeter. Her victim support group on Facebook has 28 members who have stories dating back to 2015 but she believes more than 100 landlords have been affected – usually by not being paid rent by Walters.

“I know of one letting agent who has taken on four houses that he’s previously managed and pocketed the rent from,” Amy tells LandlordZONE.

“Some landlords are so ill and stressed by it that they’ve had nervous breakdowns, while others don’t want to come forward because there are court cases pending.”

£100k out of pocket

Landlord Tristan Mills says he’s at least £100,000 out of pocket after buying two properties in Oldham and spending £50,000 on renovations at each house.

These were overseen by David Walters, but never properly carried out, says Tristan.

“He was supposed to be a fantastic agent who could turn rooms into HMOs but that didn’t happen. I also had reason to believe there were people living in both properties who didn’t have a rental agreement and didn’t pay rent,” he adds.

Tristan tells LandlordZONE that expenses were also unnecessarily charged to him – such as three TV licences and broadband deals bought for only two properties and other maintenance bills that he doesn’t believe were carried out.

“I’m resigned to not getting the money back but I hope that by speaking out it will prevent David Walters from doing this again to someone else,” he adds.

The Property Redress Scheme says Walters set up a number of phoenix companies to enable him to gain membership, after being expelled for failure to comply with its decisions. 

A spokesman adds: “However, thanks to the diligence of our employees we were able to spot these phoenix companies and expel them from the scheme immediately.”

LandlordZONE has contacted David Walters for comment.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: Rogue agent David Walters has left over 100 angry landlords facing losses | LandlordZONE.

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BREAKING: Green Homes Grant needs urgent overhaul say MPs who slam ‘snail’s pace’ progress

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The government’s Green Homes Grant has come in for more criticism today, this time from parliamentary Environmental Audit Select Committee.

Its report published today heavily criticises the administration of the scheme, which official figures show only six percent of the budget assigned for the grants in 2020/21 has actually been spent.

Also, only 20,000 vouchers have been issued out of a expected 600,000 five months after the £2 billion scheme launched.

Although well intentioned, the Green Homes Grant has failed in a key objective, the committee said, which had been to create more green jobs within the construction and other trades during the pandemic.

As LandlordZONE revealed recently, the scheme has been dogged by weak landlord demand, teething troubles and scarce tradespeople.

Among a survey by the Environmental Select Committee of over 500 people who had tried to access a grant, a ‘worrying’ 86% described a poor experience.

Perverse consequences

“Delivery has been poor for consumers and has led to perverse consequences for installers, and the scheme remains too short-term to have any prospect of achieving its initial targets,” says its report says.

“We recommend that the Green Homes Grant scheme be urgently overhauled and extended to provide greater long-term stimulus to the domestic energy efficiency sector.

“The Government must be mindful not to repeat the mistakes of the failed Green Deal energy efficiency incentive scheme.”

The NRLA, which recently conducted its own investigation into the scheme, says that although 43% of landlords want to take it up, many are prevented from doing so by the criteria that it requires them to meet.

This includes that homeowners must install primary measures before receiving the same funding towards secondary measures.

“We agree with the Select Committee that the eligibility criteria for the scheme is preventing many from being able to access it and Ministers need to address this as a matter of urgency,” says Meera Chindooroy, the NRLA’s Deputy Policy Director (pictured).

Read the report in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Green Homes Grant needs urgent overhaul say MPs who slam ‘snail’s pace’ progress | LandlordZONE.

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