The mortgage consent mistake that put a landlord at risk

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Property118

The mortgage consent mistake that put a landlord at risk

The landlord had a standard residential mortgage but decided to let out their property when work took them abroad. They assumed the lender wouldn’t notice and went ahead without seeking consent. When the lender carried out a routine check, they discovered the property was tenanted. The landlord was in breach of their mortgage terms, exposing themselves to the risk of repossession and immediate demand for repayment. The tenants, meanwhile, were left anxious about their security of tenure.

Lenders treat letting without consent as a serious breach. Some allow temporary “consent to let” arrangements for a fee, while others insist on switching to a formal buy-to-let mortgage. Ignoring this step places landlords in jeopardy, as insurers may also refuse claims if the property is being used contrary to mortgage terms. In this case, a simple phone call to the lender could have prevented a high-stakes compliance risk.

The lesson is clear: landlords must align lending arrangements with letting intentions. Mortgage conditions are not optional, and assuming no one will notice is a gamble that risks both property and financial stability.

What do you think?

Have you ever had to seek consent to let from your lender? Did you find the process straightforward or restrictive?

Source: MoneyHelper: Consent to Let explained

Previous articles in this series

Landlord Lessons: The AST date mistake

Landlord Lessons: The missing inventory

Landlord Lessons: The verbal agreement trap

Landlord Lessons: The gas safety lapse

Landlord Lessons: The unprotected deposit

Landlord Lessons: The unlicensed HMO

Landlord Lessons: The electrical safety lapse

Landlord Lessons: The Right to Rent slip

Landlord Lessons: The ignored repair

Landlord Lessons: The insurance blindspot

Landlord Lessons: The rent-to-rent risk

Landlord Lessons: The Section 21 error

Landlord Lessons: The Section 8 misstep

Landlord Lessons: The selective licensing oversight

Landlord Lessons: The EPC blindspot

Landlord Lessons: The rent increase mistake

Landlord Lessons: The service charge shock

Landlord Lessons: The tax record slip

Landlord Lessons: The guarantor gap

Landlord Lessons: The referencing shortcut

Landlord Lessons: The pet clause oversight

Landlord Lessons: The fire safety lapse

Landlord Lessons: The legionella neglect

Landlord Lessons: The asbestos surprise

Landlord Lessons: The DIY eviction disaster

Landlord Lessons: The rent collection chaos

Landlord Lessons: The repair retention row

Landlord Lessons: The unserved notice oversight

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I think my Airbnb guests were strippers and now I have a glitter problem

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Property118

I think my Airbnb guests were strippers and now I have a glitter problem

I have been an Airbnb host for about six years, and I thought I had seen everything. I was wrong.

I recently accepted a three-night booking from three young women. They looked perfectly normal on their profile. Nothing unusual. The messages were polite, check-in was smooth, and I did not give them a second thought.

The first sign that something odd was happening came from the neighbour. She asked me, in that half-concerned and half-nosy tone that older neighbours do so well, whether I knew the guests were “working nights”. I asked what she meant. She said she had seen them leaving the property at around eleven o’clock, wearing full evening wear. Not the sort of outfits anyone wears to go to Tesco.

I brushed it off at the time. Some people go out clubbing midweek. It is not my business.

The second sign came from my cleaner. She sent me a voice note the following morning, saying she could not get inside because “they are still getting ready for work”. At that point, I thought my neighbour must have misinterpreted something, because who gets ready for work at half eleven in the morning after coming home at four?

Then the third sign arrived, and this is the one that made everything click. One of the guests messaged me asking if I had any spare full-length mirrors because they “needed them for rehearsals”. I told them I did not. They said not to worry, they would improvise.

By now, I had built a fairly accurate picture of what they were doing, but they were tidy, polite and not causing damage, so I convinced myself to leave it alone. If they chose to live that way, that was their business.

The real problem happened after they checked out.

My cleaner rang me, sounding exasperated. She said the place was spotless except for one thing. She said the carpet looked like someone had exploded a craft shop inside the living room. I went over to see it myself. She was not exaggerating. There was glitter everywhere. Embedded in the carpet, stuck to the curtains, wedged in the skirting boards.

I vacuumed, she vacuumed, we tried sticky rollers, we tried a carpet brush, we tried duct tape. It barely made a dent. Every time we thought we had cleared it, we walked across the carpet and our shoes lit up like disco balls.

I cannot list the property again until it is resolved.

My question: Is there any vacuum cleaner on earth that actually removes glitter from carpet, or am I looking at a full replacement?

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Landlords blast selective licensing scheme as anger grows after first year

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Property118

Landlords blast selective licensing scheme as anger grows after first year

Angry landlords have hit out at their town’s selective licensing scheme, a year after it was introduced.

They accuse the council of creating higher rents, driving evictions and worsening local housing pressures, Teesside Live reports.

The five-year scheme, covering central Stockton, north Thornaby and Newtown, has issued more than 1,400 licences since its launch.

Landlord opposition was clear long before the rollout, with only 3% backing the plans in the council’s 2024 consultation.

Now, a one-year update on the scheme at a Safer Stockton Partnership meeting led councillors to praise the scheme’s impact.

Dick Turpin wore a mask

One landlord argued the policy completely misunderstands the realities of the sector, saying “we are not babysitters and cannot control how tenants conduct their lives”.

Another warned they would “just sell my properties” in response.

Several landlords say the scheme has backfired, with one calling it an “own goal” and an “exercise in futility”.

Others were even more blunt with a landlord saying: “Selective licensing is just a cash cow for the council. At least Dick Turpin had the decency to wear a mask.”

Stockton’s licensing scheme criticised

Other landlords have highlighted how the scheme has caused “real and lasting harm to the community”.

One said: “Lots of tenants have been evicted because of the new schemes. Well done Stockton Council! Another self-induced own goal.”

Some argue tenants are the ones paying the price with rents going up to pay the license fee.

Another landlord said: “The licensing scheme is a joke. Total waste of time. The scheme is a disgrace. Four years to go, then it will end, thank God.”

Landlords are selling up

Frustrated landlords also highlighted the scheme’s impact with one stating: “Landlords are selling up and evicting tenants. We now have more ‘low housing demand’ in the area than before, but that was why the council brought the scheme out, saying they would solve it.”

However, it’s not just landlords who are unimpressed; tenants aren’t too.

One reportedly said he is “fed up of getting knocks at the door” from officers.

He added: “They think they are helping us tenants. Well, I have a message to them, ‘no you aren’t, leave me in peace, I don’t want you round and you’re not coming in.’”

He also criticised the language used around inspections, saying officials should “show greater respect.”

Council praises licensing

The council insists the licensing scheme is delivering what it set out to do.

Councillor Richard Eglington, cabinet member for regeneration and housing, told the news site: “Before the implementation of selective licensing in central Stockton, north Thornaby and Newtown, the council consulted extensively with landlords, managing agents and those living in the proposed selective licensing areas to seek views on the proposals.”

He added that ‘all feedback’ was considered before its introduction and he insists that the scheme is working by improving the condition and management of private sector housing, with ‘positive outcomes’ for landlords and tenants.

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Beat the crackdown! We’ll get Your Properties Sold Fast for the maximum amount of Cash in the Bank

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Property118

Beat the crackdown! We’ll get Your Properties Sold Fast for the maximum amount of Cash in the Bank

Thousands of us are getting ready to sell as the government warns landlords they could face fines of up to £40,000 under the Renters’ Rights Act.

With less than 28 days to go until the start of the New Year, many landlords are looking for a quick way out.

With the new changes just around the corner, every delay could cost substantial equity. Landlords simply can’t afford to be stuck waiting months, or even years, to sell their property. For landlords like Shauna, who had to wait eight years to sell 14 properties, turning to Landlord Sales Agency helped her finally exit her portfolio.

After almost a decade of trying to sell the properties by herself through various different channels, the moment Shauna contacted us she was able to sell the remaining 23 properties of her portfolio in under 16 days.

Shauna says she was shocked at just how fast we were able to find a buyer and all for the best price possible.

In fact, we help hundreds of landlords every day, like Shauna, get a quick sale and cash in the bank before the New Year. Whether it’s single buy-to-lets, chunks of them, a few at a time or whole portfolios, we have the best team in the UK who know exactly what it takes to get your properties sold.

With our private database of over 30,000 buyers, the top property buying companies, private funds and first-time buyers, we generate a bidding war that pushes your properties to the highest prices. What’s more, we manage the entire process, allowing you to sit back and relax – no need to worry about managing the details.

We have a 100% success rate in selling tenanted buy-to-lets and a solid network of solicitors who can help with evictions, paying tenants to move out, or raising rents to make properties more appealing to buyers.

We can also help with refurbs and, in some cases, even pay for them so you can get a higher price. But what landlords really love us for is that we’re fast. Super fast. It’s why so many landlords per month are coming to us, and we’re delivering.

All our properties sell on average in just 28 days for up to 90% market value, and for that, we cover all the costs and take away all the hassle that comes with selling the portfolio. We’re completely transparent, so you know exactly what we’re making.

We’re experts at overcoming every single obstacle, be it tenant issues, selling with tenants in situ, evictions, or properties in difficult conditions. There’s absolutely nothing stopping us from selling your properties.

In fact, we’re so confident, contact us now and find out for yourself if we can get your properties sold for a price and timescale you’re happy with. Chances are we’ll beat it.

So if you want to start 2026 the right way, with cash in the bank and peace of mind, you’re all set to move on to safer investments. Contact us today.

We know exactly what’s needed. Our team is ready. And we’re here to get the job done.

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The unserved notice oversight that derailed a possession claim

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Property118

The unserved notice oversight that derailed a possession claim

The landlord filed for possession after months of arrears, confident the paperwork was in order. But when the case reached court, the tenant’s solicitor argued that no valid notice had ever been served. The landlord had posted a Section 21 notice but had no proof of delivery, and the tenant denied receiving it. The judge struck out the claim, forcing the landlord to start the entire process again. By the time a new notice was served and the case reheard, the arrears had doubled.

Serving notice is not simply about completing the right form. Landlords must ensure the notice is delivered and can be evidenced if challenged. Acceptable methods include personal delivery, recorded post, or using a process server. Some tenancy agreements specify service methods, but without proof, landlords are exposed. In this case, the absence of evidence cost months of rent and additional legal fees.

The lesson is clear: possession cases collapse without procedural precision. Notices should always be served in a way that provides indisputable evidence. Landlords who cut corners risk losing time, money, and credibility in court.

What do you think?

How do you serve notices? Do you rely on recorded delivery, personal service, or professional agents to remove doubt?

Source: Gov.uk notice service guidance

Previous articles in this series

Landlord Lessons: The AST date mistake

Landlord Lessons: The missing inventory

Landlord Lessons: The verbal agreement trap

Landlord Lessons: The gas safety lapse

Landlord Lessons: The unprotected deposit

Landlord Lessons: The unlicensed HMO

Landlord Lessons: The electrical safety lapse

Landlord Lessons: The Right to Rent slip

Landlord Lessons: The ignored repair

Landlord Lessons: The insurance blindspot

Landlord Lessons: The rent-to-rent risk

Landlord Lessons: The Section 21 error

Landlord Lessons: The Section 8 misstep

Landlord Lessons: The selective licensing oversight

Landlord Lessons: The EPC blindspot

Landlord Lessons: The rent increase mistake

Landlord Lessons: The service charge shock

Landlord Lessons: The tax record slip

Landlord Lessons: The guarantor gap

Landlord Lessons: The referencing shortcut

Landlord Lessons: The pet clause oversight

Landlord Lessons: The fire safety lapse

Landlord Lessons: The legionella neglect

Landlord Lessons: The asbestos surprise

Landlord Lessons: The DIY eviction disaster

Landlord Lessons: The rent collection chaos

Landlord Lessons: The repair retention row

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Tenants will pay the price for council’s entry threats warns landlord

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Property118

Tenants will pay the price for council’s entry threats warns landlord

A landlord is warning that councils gaining more powers for implementing forced intended entry to a rented property will ultimately harm tenants.

While Nottingham City Council says it will not use forced entry, the Renters’ Rights Act will give council officers the power to carry out surprise inspections and enter private rented properties without a warrant in certain circumstances.

Mick Roberts, one of Nottingham’s largest landlords housing benefit tenants for the past 28 years, says that under selective licensing schemes, councils already have powers to inspect properties.

However, he has recently received a letter of intended entry for one of his rented homes.

The letter warns the council may issue an enforcement notice, along with a £350 charge, if they find any issues during the inspection.

Words and actions make it harder for tenants

Mr Roberts tells Property118: “An intended entry letter sounds scary, what are they going to do, kick the door down if the tenants don’t answer?

“I’m really worried for my tenants’ health, and they’ve committed no crime, yet the council intend to enter.

“The council claims they will charge me £350 when they find something wrong. If it’s something the tenants have done, what do the council think will happen to their cheap rent?

“Do the council have any idea how their words and actions are making it harder for tenants?”

He adds: “The council told me two years ago they were looking at changing the wording ‘Intended Entry’.

“Please do go in, find some things wrong, bill me, it gives me the perfect reason to accelerate my house-selling process.

“Then I don’t have to look after the tenants, and don’t have to do my best to reduce the price and don’t have to take longer to find them the perfect landlord to keep them safe.”

Mr Roberts continued: “The landlord has committed no crime. The tenant hasn’t. The house is safe as far as we’re aware. Yet the council don’t even discuss a suitable time with the landlord to arrange access for everyone?”

Selective licensing plays an important role in raising housing standards

A Nottingham City Council spokesperson told Property118 compliance inspections are an important part in helping to protect tenants.

The spokesperson said: “Selective licensing plays an important role in raising housing standards and ensuring residents have access to safe, well-managed homes.

“Compliance inspections are a normal and necessary part of this process and help maintain a consistent standard across the sector. They are designed to support landlords in meeting their legal responsibilities, many of whom already provide high-quality accommodation.

“Where issues are identified, the council will always take a proportionate approach, clearly outlining what needs to be addressed and allowing landlords the opportunity to put things right. Any charges only apply where landlords fail to meet legal requirements, in line with national policy.

“We do not comment on individual cases or unverified claims. Our focus remains on protecting tenants and creating a fair and consistent system for all responsible landlords.”

Councils gain more powers for entry

The issue of gaining entry will become widely used by councils under the Renters’ Rights Act, from 27 December.

That’s when councils will have the power to enter private rented properties without needing a warrant in certain circumstances.

Landlord law expert at Landlord Licensing & Defence, Phil Turtle, told Property118 the new power of entry is simply embodying what councils have been able to bend the law to achieve for years.

He explains: “A council can still inspect a property even if the tenant and landlord refuse to give permission. Councils have more power than the police to enter your home.

“Already, before the Renters’ Rights Act powers of entry: The Housing Act gives councils entry under Section 239 which gives them the ability to go in and inspect because of an official complaint to determine whether any function under parts one to four of the Housing Act should be exercised.

“If the council think anything is wrong in the property or if anybody has complained, they can go in under Section 239 in 24 hours.”

Mr Turtle added: “But when dealing with an unlicensed property, councils do not need to give 24-hour notice.

“If the council believe that there is an offence under Housing Act 2004 Section 72 which is anything to do with HMO licensing or Section 95 (selective licensing) and they have reason to believe the property is unlicensed, they don’t need to give notice they can just turn-up and demand entry.

“Often the council will do a dawn-style raid at five in the morning with eight or so officers dressed to look like police uniforms, and they’ll threaten their way in.”

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SDLT Tribunal Win Highlights Misclassification Risks for Landlords

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Property118

SDLT Tribunal Win Highlights Misclassification Risks for Landlords

A newly published First-tier Tribunal decision has drawn fresh attention to how easily Stamp Duty Land Tax (SDLT) can be misapplied when property purchases include multiple components such as parking spaces, garages, or storage units.

The case, Sehgal v Revenue and Customs [2025] UKFTT 1439 (TC), concerned the purchase of an apartment, an allocated car parking space, and a separate basement storage unit.

HMRC treated the entire purchase as wholly residential, applying the higher residential SDLT rates.

• The taxpayers appealed.
• The Tribunal agreed.
• A repayment of £1,749,250 was ordered.

The full written judgment is now published on the National Archives “Find Case Law” website under the official neutral citation [2025] UKFTT 1439 (TC).

This article summarises what is known from the published decision, why the outcome matters, and what property owners should consider in similar circumstances.

What We Know About the Case

Based on the published judgment:

• The appellants purchased an apartment,
• an allocated parking space,
• and a separate storage unit held under a new 20-year lease,
• with each component registered under its own title.

All three were acquired under a single contract for £18,250,000.

HMRC treated the entire transaction as “wholly residential”, applying higher residential SDLT rates.

The Tribunal concluded that:

• the storage unit did not “subsist for the benefit of” the apartment (FA 2003 s.116), and
• therefore did not qualify as “residential property”.

Because the transaction did not consist entirely of residential property, the non-residential SDLT rates applied. The appeal was allowed.

Important Clarification: We Do NOT Know Whether the Appellants Were Landlords

Nothing in the public judgment states:

• that the appellants were landlords,
• that the property was part of a rental portfolio, or
• that it was purchased for investment purposes.

Therefore, we do not describe them as landlords.

The case is nevertheless highly relevant to landlords, because mixed-use SDLT questions frequently arise in portfolios containing flats with garages, stores, parking, ancillary land or multiple titles.

Why This Case Matters for Landlords

Many property purchases involve multiple components, such as:

• garages,
• storage units,
• plant rooms,
• bin stores,
• commercial elements,
• land used for non-residential purposes,
• parking or access rights held under separate titles.

The case highlights a key SDLT principle: If any part of a transaction is non-residential, the entire transaction may fall under the non-residential SDLT rate structure.

Misclassification can lead to substantial overpayments, especially on higher-value properties.

The outcome in Sehgal demonstrates how a relatively small non-residential component can have a significant effect on SDLT liability, though several SDLT specialist have described the result as “surprising”, meaning outcomes remain fact-specific.

When Are Storage Units or Ancillary Spaces ‘Residential Property’?

It depends on several factors:

Often residential:

• Parking spaces or garages included in the same lease as the flat
• Areas necessary for the dwelling’s use
• Communal areas linked to residential enjoyment

Potentially non-residential:

• Storage units under separate leases
• Spaces that can be independently used or let
• Areas not required for the dwelling
• Outbuildings or land with distinct commercial purpose
• Components legally or functionally independent of the flat

The Tribunal’s analysis emphasised the legal and functional independence of the storage unit in Sehgal.

As always, outcomes are heavily dependent on the facts and documents.

Why the Judgment Appeared Later Than Expected

Although the hearing took place in January 2025, the written judgment was published on the National Archives site later. Delays like this are not unusual and can occur for administrative or procedural reasons.

Now that the decision is publicly available, its reasoning can be analysed directly from the official text.

Possibility of Appeal

Some SDLT professionals commenting publicly have described the decision as unusual and have said they expect HMRC may consider appealing.

At the time of writing:

• no public confirmation of any appeal has been issued, and
• no Upper Tribunal listing is visible.

If an appeal is brought or further developments arise, we will provide an updated analysis.

Recommended Reading for Landlords and Property Owners

You may find these Property118 resources useful:

Why SDLT Planning Matters explains the new 2025 SDLT regime (additional-dwelling surcharge, non-resident surcharge, abolition of MDR) and outlines how legitimate strategies still exist to minimise SDLT for landlords.

Case Study: One Mixed-Use Purchase, Three Strategic Outcomes shows a real-world example where an investor used mixed-use SDLT rules, lease restructuring, refinancing and pension structuring to optimise tax treatment, split assets, and create long-term investment value.

Thinking Bigger: Why Strategic Investors Are Acquiring Six or More Properties in a Single Deal discusses the logic behind buying blocks of six or more properties at once as a deliberate strategy to access non-residential SDLT treatment rather than paying higher residential rates.

Why £2 million Mansion Qualified for 5% SDLT explains how a large, £2 million countryside mansion (with a chapel, a lake and six holiday-let cottages) nonetheless became liable to a 5 % Stamp Duty Land Tax (SDLT) charge because it was treated as a “non-residential” or “mixed-use” purchase under the rules.

These guides help provide context when thinking about structuring, ownership, and tax planning.

What To Do If You Think Your SDLT May Have Been Misclassified

If you have purchased property where any of the following applied:

• separate storage units or garages,
• parking on separate titles,
• multiple leases,
• partially commercial areas,
• unusual layouts or ancillary land,
• multi-component purchases under one contract,

…it may be worth reviewing whether the original SDLT position was correct.

Several recent Tribunal decisions,  including Sehgal, show that HMRC assessments are sometimes wrong.

Through a full Property118 consultation, we can help you:

• review ownership structures,

• identify areas worth exploring,

• and understand what further professional input may be needed.

We do not provide SDLT reclaim services ourselves.

Important Notice – Not Legal or Tax Advice

This article is for general information only. It is not SDLT advice, legal advice, tax advice or an encouragement to pursue a reclaim.

All tax positions must be reviewed with your accountant. All legal interpretations must be confirmed by your solicitor or barrister.

We will provide a full technical breakdown of the Sehgal decision if and when an appeal is announced or further details become publicly available.

Our consultancy not only covers retirement, business continuity and legacy planning. It can also unlock the lifestyle you once dreamed about but forgot to implement.

Important notice – scope of planning support

Where our recommendations touch on areas requiring regulated input, we refer clients to appropriately authorised professionals for advice and execution.

Mixed-Use SDLT – Frequently Asked Questions (FAQ)

Information correct as at 3rd December 2025. SDLT rules and case law change frequently. Always seek specialist advice before making or amending any SDLT filing.

1. What does “mixed-use” mean for SDLT?

A purchase is treated as mixed-use when it includes both:

• residential elements (e.g., a dwelling), and
• non-residential elements (e.g., commercial land, separate units, land not used as part of the dwelling).

If any part of the relevant land is non-residential, SDLT is charged at non-residential rates for the whole transaction. (Exactly how “relevant land” is defined depends on the facts, titles and contracts involved.)

2. What counts as “residential property” for SDLT?

The Finance Act 2003 (s.116) defines residential property as:

• a dwelling,
• land that forms part of the garden or grounds of that dwelling, and
• interests or rights that subsist for the benefit of the dwelling (e.g., a parking space included within the same lease).

It is not about what something is called, but how it actually functions.

3. Can a storage unit or garage make a purchase mixed-use?

It depends on the details:

Often residential

• A parking space or garage included in the same lease/title
• Areas integral to the flat
• Storage that is not independently accessible or lettable

Potentially non-residential

• A storage unit on a separate lease
• Garages that can be used independently
• Areas with separate access or titles
• Units capable of being let independently

The key question is whether the space subsists for the benefit of the dwelling. Every case turns on its own facts and paperwork.

4. What if I have a garden office, studio or outbuilding?

If the structure is:

• within the garden/grounds, and
• used for domestic purposes,

…it is generally still “residential property”.

However, if it is:

• separately lettable,
• used commercially,
• held under a different title, OR
• functionally independent,

…the analysis becomes more complex.

Tribunal cases have gone both ways, and HMRC routinely challenge borderline claims. Professional SDLT advice is essential before relying on mixed-use treatment.

5. What about land surrounding a house?

Land can be non-residential if:

• it is used for commercial activity (e.g., grazing),
• it is genuinely separate from the use of the dwelling, OR
• it is not reasonably required for the enjoyment of the home.

The Suterwalla case is an example where grazing land meant the purchase was mixed-use. Similar-looking land in other cases has still been treated as part of the residential “grounds”. This is highly fact-specific.

6. Does having a second dwelling (like an annex) make a property mixed-use?

No, a second dwelling does not create mixed-use.

Historically this would have engaged Multiple Dwellings Relief (MDR).

MDR is now abolished for most transactions (with limited transitional rules), but the “how many dwellings?” question may still be relevant for historic cases.

A second dwelling is still residential, not non-residential.

7. Are mixed-use SDLT rates always lower?

They can be lower, especially on higher-value purchases, because:

• non-residential rates top out at 5%, and
• there is no 3% surcharge or 15% corporate rate on non-residential transactions.

However, the financial difference depends on:

• your transaction value,
• buyer type, and
• timing.

You should always run the numbers with a specialist, the saving is not automatic.

8. Does the Sehgal case mean storage units are non-residential?

No, it means that in that specific case, with:

• a separate short lease,
• a separate title,
• and specific factual circumstances,

…the Tribunal found the storage unit did not “subsist for the benefit of” the apartment.

The Tribunal itself acknowledged this was a “surprising result” given the storage unit’s small value relative to the flat.

This does not create a general rule. Most “flat + store” arrangements will still be residential, it depends entirely on the precise facts.

You should not change or amend any SDLT return based solely on Sehgal without specialist review.

9. What if my purchase included multiple leases or multiple titles?

Multiple leases/titles are a red flag that mixed-use might be relevant, but they do not guarantee it.

Key considerations include:

• how the documents link the spaces,
• whether each element is independently usable,
• whether the rights are essential to the dwelling, and
• whether different parts can be legally occupied or let separately.

An adviser needs to review the actual documents.

10. Can a small non-residential component change the whole SDLT result?

Yes; if the non-residential element is genuinely non-residential under FA 2003 s.116.

This is the core lesson from Sehgal, but again, only where the documentation and facts support it.

11. Is HMRC expected to appeal the Sehgal decision?

Some SDLT professionals commenting publicly have suggested that HMRC may consider an appeal, but:

• no appeal has been publicly confirmed, and
• no Upper Tribunal listing is available at the time of writing.

If this changes, we will provide an update.

12. What should I do if I think my SDLT may have been misclassified?

Do not amend or submit an SDLT reclaim without specialist advice.

Instead:

• gather the leases/titles/contracts,
• obtain a structured review,
• and speak to an accountant or SDLT solicitor about potential next steps.

Property118 can help you sense-check ownership structures and understand which questions to take to a regulated adviser.

We do not provide SDLT reclaim services.

13. Where can I learn more about property structures and tax?

You may find these Property118 resources useful:

Why SDLT Planning Matters — explains the new 2025 SDLT regime (additional-dwelling surcharge, non-resident surcharge, abolition of MDR) and outlines how legitimate strategies still exist to minimise SDLT for landlords.

Case Study: One Mixed-Use Purchase, Three Strategic Outcomes — shows a real-world example where an investor used mixed-use SDLT rules, lease restructuring, refinancing and pension structuring to optimise tax treatment, split assets, and create long-term investment value.

Thinking Bigger: Why Strategic Investors Are Acquiring Six or More Properties in a Single Deal — discusses the logic behind buying blocks of six or more properties at once as a deliberate strategy to access non-residential SDLT treatment rather than paying higher residential rates.

Why £2 million Mansion Qualified for 5% SDLT — this explains how a large, £2 million countryside mansion (with a chapel, a lake and six holiday-let cottages) nonetheless became liable to a 5 % Stamp Duty Land Tax (SDLT) charge because it was treated as a “non-residential” or “mixed-use” purchase under the rules.

These guides help provide context when thinking about structuring, ownership, and tax planning.

Disclaimer

This FAQ is for general information only. It is not tax advice, legal advice, SDLT reclaim advice, or a recommendation to amend any tax return.

SDLT outcomes depend entirely on the facts and documents of each case. Always consult a qualified SDLT specialist, accountant or solicitor before taking action.

Important Notice – Not Legal or Tax Advice

This article is for general information only. It is not SDLT advice, legal advice, tax advice or an encouragement to pursue a reclaim.

All tax positions must be reviewed with your accountant. All legal interpretations must be confirmed by your solicitor or barrister.

We will provide a full technical breakdown of the Sehgal decision if and when an appeal is announced or further details become publicly available.

Our consultancy not only covers retirement, business continuity and legacy planning. It can also unlock the lifestyle you once dreamed about but forgot to implement.

Important notice – scope of planning support

Where our recommendations touch on areas requiring regulated input, we refer clients to appropriately authorised professionals for advice and execution.

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Making Tax Digital Webinar

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Property118

Making Tax Digital Webinar

I have agreed to join a live online briefing on Making Tax Digital (MTD) specifically for Property118 readers, alongside the team at Landlord Studio and a specialist landlord accountant. The aim is simple: to give you a clear, practical picture of what MTD means for your rental business, and what you can do now so that it feels manageable rather than overwhelming.

Webinar panel

• Mark Alexander, founder of Property118
• Logan Ransley, co-founder and managing director (UK), Landlord Studio
• Specialist landlord accountant from Landlord Studio’s professional network

Why this briefing matters now

MTD is arriving at a time when landlords already face higher costs, tighter lender criteria and increasing regulation.

Digital record keeping often gets postponed until HMRC deadlines are dangerously close.

This session is designed for landlords who want to get ahead calmly and practically, without overhauling their entire workflow.

What we will cover

1. What MTD really means in practice for landlords
2. Which landlords are affected and when
3. How MTD fits alongside Self Assessment and existing routines
4. What digital record keeping should look like for rental income and expenses
5. The common mistakes that lead to penalties

Why I am personally involved

I am joining this panel to ask the questions landlords ask me every day and to ensure the guidance stays grounded in reality for portfolios of all sizes.

Who this session is for

1. Portfolio landlords who already use software and want to sense check their workflows
2. Accountants, Letting Agents, IFA’s and other professional advisers
3. Landlords who rely heavily on accountants but want clarity on their own responsibilities
4. Landlords using spreadsheets or paper records who want to know what needs to change
5. Anyone who feels behind the curve and wants simple, practical guidance

BOOK NOW

A recording will be sent to all registrants.

The live webinar will take place at 12:00 on Tuesday 6 January 2026.

Places on the live session are limited by the webinar platform. If you want to attend, or simply want the recording afterwards, please register now via the link below.

https://www.landlordstudio.com/uk/webinar/get-ready-for-mtd?refer=campaign_Property118_MTD_Webinar

MTD webinar questions answered

Do I need to be an existing Landlord Studio user to attend?
No. The session is for any UK landlord who wants to understand what Making Tax Digital means in practice and how to get their records ready.

What if I cannot attend at 12:00 on 6 January 2026?
You should still register. Everyone who registers will receive a link to the recording and a copy of the slides after the session.

Will the webinar cover my personal tax position?
No. The webinar explains the rules and shows examples of good practice, but it will not give personalised tax advice. You will be encouraged to discuss your own position with your accountant.

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Government issues guidance on court eviction process for landlords

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Property118

Government issues guidance on court eviction process for landlords

The government has issued guidance for landlords on the process they will need to follow to evict tenants under the Renters’ Rights Act.

According to the guidance, after 1 May 2026, landlords wishing to evict a tenant solely for unpaid rent will need to use the Possession Claim Online Service (PCOL).

If eviction is for any other reason under Section 8, landlords will need to use the paper-based service.

Landlords must give tenants the correct notice period for each ground

Under the Renters’ Rights Act, there will be specific grounds on which a landlord can end a tenancy.

Landlords must give tenants the correct notice period for each ground. If a tenant does not vacate the property during the notice period, landlords will be able to apply to the court to evict them.

As previously reported by Property118, the government has published a list of mandatory grounds that landlords can use.

If a landlord can prove one of these grounds, the court will grant a possession order, allowing the eviction process to proceed.

The guidance says that landlords will only be able to use PCOL for eviction due to unpaid rent. The online service costs £404, allows landlords to complete court forms digitally, and provides updates on the progress of the claim.

However, landlords cannot use the online service for other types of standard possession claims, such as evicting tenants to sell the property or for breaches of the tenancy agreement.

Tenants have 14 days to file a defence

According to the government guidance, after receiving the claim, the court will:

• send a copy of the application to the tenant
• issue the landlord with a notice of issue and claim number
• set a possession hearing date

Tenants have 14 days to file a defence, and the court will provide a copy to the landlord. The guidance recommends seeking legal advice where a defence is raised.

At least 14 days before the hearing, landlords must send the court:

• the completed N5 and N119 forms
• all supporting documents and evidence
• a copy of the tenant’s defence, if submitted

Most hearings will be held at the county court closest to the property. Landlords must bring copies of all relevant documents and notify the court in advance if they require assistance attending the hearing.

Landlords will need to provide evidence to prove the grounds for possession. Examples include:

• rent account statements
• witness evidence of antisocial behaviour
• photographs of property damage
• proof they intend to sell (such as instructions to an estate agent)
• evidence of tenancy breaches, including unlawful subletting

Dismissal may occur if the landlord has not followed procedure

According to the government guidance, in the hearing, the judge may adjourn, dismiss the claim, or issue either an outright possession order or a suspended possession order.

Dismissal may occur if the landlord has not followed procedure, fails to attend, cannot prove the ground, or if rent arrears have been cleared. If dismissed, the landlord will not receive a possession order and may be ordered to pay the tenant’s legal costs. A new claim may still be possible, but the process must be restarted.

If an outright possession order is granted, the tenant must leave by the date specified. For mandatory grounds, this is usually within 14 days, although judges may allow up to six weeks where extreme hardship is shown. Longer delays may apply for discretionary grounds.

Property118 commercial reality check

The guidance adds yet another layer of pressure on responsible landlords who already carry the financial and operational risk of providing homes. The system is tighter, slower and unforgiving of small mistakes. Professionals will need to defend their position with precision, not frustration.

What serious landlords should do next

Map your possession routes now. Clarify which grounds may apply across your portfolio so you are never forced into last-minute decisions. A clear route map reduces anxiety and gives you back control over timing and cost.

Strengthen evidence discipline. Courts expect landlords to carry the burden of proof, even when the situation is obvious. Build a reliable paper trail for arrears, anti-social behaviour and breaches. Strong evidence protects you from unnecessary adjournments and helps you avoid the feeling of being treated unfairly.

Model both PCOL and paper-based scenarios. Arrears cases move online, everything else stays on paper. This split system creates uncertainty. Integrate both pathways into your cashflow forecasts so delays do not push stress onto your financing or maintenance plans.

Selective disposals. Some landlords will choose to exit problem assets rather than shoulder repeated procedural battles. Plan timelines, notice requirements and marketing windows early so you remain in command of any disposal strategy. If you are considering selling, it is worth reviewing this guide on calculating Capital Gains Tax before making any decisions: https://www.property118.com/why-every-landlord-should-calculate-cgt-before-selling-a-single-property/

Advantage through professionalism

The system may feel stacked against landlords, yet professionalism restores the balance. Prepared landlords win hearings more cleanly, avoid wasted costs and maintain confidence in their long-term strategy.

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Rising rents contrast with better affordability for first-time buyers

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Property118

Rising rents contrast with better affordability for first-time buyers

First-time buyer affordability has improved over the last year, but rent costs continue to rise, according to a new report.

Data from Lloyds Bank reveals the typical first-time buyer property price is now 5.9 times average earnings, down from 6.2 last year.

The report shows a typical first property now costs £237,518, up 2.4% over the past year, while average incomes have increased 6.2% to £40,021.

Rent costs have increased sharply

According to the findings, typical monthly mortgage costs for first-time buyers have risen by just 0.1% over the last year to £1,087. This is due to lower interest rates offsetting modest increases in property prices.

As a proportion of income, average monthly mortgage costs have fallen from 34.6% to 32.6%, the lowest figure since mid-2022.

However, rent costs have increased sharply over the last year, rising 5.5% to a monthly average of £1,346.

Renting is now, on average, £259 per month more expensive than a typical first-time buyer mortgage, a difference that has grown by over a third (36%) over the last year.

Despite this, strong wage growth has kept rental payments as a percentage of income stable at around 40%.

Buying your first home is a big challenge

Amanda Bryden, head of mortgages at Lloyds, says for those who can overcome the challenge of raising a deposit, owning a home can often be more affordable than renting. She said:

She said: “Buying your first home is still a big challenge, but things are moving in the right direction. Lower mortgage rates, stronger wages and slower house price growth mean it’s becoming a little easier to get on the ladder, the best it’s been for several years.

“Big national numbers often make the headlines, but the reality is that the housing market can look very different from one town to the next. If you’re searching for your first home, being flexible on location can really help, sometimes moving just a few miles from your preferred area can unlock much better value.”

Scotland accounts for many of the most affordable local areas in Britain

The report also reveals that across the housing market, including existing homeowners as well as first-time buyers, the UK property price to earnings ratio has fallen from 7.8 to 7.5 over the last year.

This is based on a typical property costing £298,521, up 1.9% over the last year, while average incomes are up 6.2% to £40,021.

Scotland accounts for many of the most affordable local areas in Britain. Inverclyde on the west coast tops the list with a property price to earnings ratio of 3.4. It is followed by Kingston upon Hull in Yorkshire and the Humber, with a ratio of 3.5.

Kensington and Chelsea is the least affordable local area, with a property price to earnings ratio of 17.7. Next comes Elmbridge in the South East at 16.6.

The Cotswolds saw the biggest improvement in affordability over the last year, with the property price to earnings ratio falling from 12.0 in 2024 to 9.6 this year, driven by a fall in the value of the average home.

The biggest deterioration in affordability was recorded in Staffordshire Moorlands in the West Midlands, with the ratio increasing from 5.7 to 6.3 as a result of rising property prices.

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