Why tax advice is so important BEFORE you sell any rental properties

admin    Uncategorized     agents

There are several reasons you might be selling your rental properties, here’s a list of the ones I hear most often: –

1. I’ve had enough of landlords being vilified by Governments, so-called housing charities, and much of the mainstream media
2. Interest rate rises are crippling my business
3. Section 24 tax is unfair and crippling my business
4. Selective licensing is nothing more than a money raising scam for local authorities

View Full Article: Why tax advice is so important BEFORE you sell any rental properties

LICENSING: Tribunals order two landlords to pay £30,000 in rent repayment orders

admin    Uncategorized     agents

Two London landlords have been handed hefty rent repayment orders for letting poorly managed, unlicensed HMOs.

Five tenants shared £14,055 after a First Tier Property Tribunal ruled that the shared house in Copperfield Street (pictured, right) was unlicensed under Southwark Council’s additional licensing scheme for two months and then had no mandatory licence when the fifth tenant moved in for five months.

It heard there were no fire doors in the property which was not being properly managed, and that landlord Andre Trepel failed to keep the central heating and hot water services working.

Although it ruled that both Arune Buragaite and Trepel (No. 1 London) Ltd had control of, or managed the property, and received rent, cases against them were dismissed.

Professional landlord

It said that as a company director, Trepel was a professional landlord, and added: “It would very likely have been difficult for a licence to have been obtained for the property without works being undertaken, meaning that by letting the property without a licence the first respondent was able to avoid expenditure which he would otherwise have to have incurred and it would also increase the hazards for the tenants.”

£16,566 RRO

In another case, three tenants living in an HMO in Muswell Hill Road (main picture) that was covered by Haringey Council’s additional licensing scheme were awarded a £16,566 rent repayment order.

The tribunal criticised Landlord Jalay Enterprises Ltd’s failure to cooperate with the procedures or to file any documentation.

It added: “We note complaints raised by the applicants in regard to the respondent’s failure to maintain the property (persistent damp in one bedroom and defective lavatory) and have particular concerns about the applicants’ allegations that the property was deficient in fire protection – only one battery operated smoke alarm, no door to the kitchen and no fire doors throughout the flat.”

Read more about RROs

View Full Article: LICENSING: Tribunals order two landlords to pay £30,000 in rent repayment orders

Daily Telegraph wants to speak to landlords who are dealing with rising mortgage costs

admin    Uncategorized     agents

Are you a landlord who is dealing with rising mortgage rates and higher costs? Then, Melissa Lawford, the economics reporter for the Telegraph would like to speak with you.

Melissa would like to know:  How you are affected by lenders’

View Full Article: Daily Telegraph wants to speak to landlords who are dealing with rising mortgage costs

Landlords slam city’s ‘discriminatory’ HMO licensing scheme

admin    Uncategorized     agents

Two out of three HMO landlords in Portsmouth plan to call it quits this year, largely prompted by the launch of an additional licensing scheme in September.

Portsmouth & District Private Landlords Association’s survey found that this would mean a loss of 348 rooms which, extrapolated to the city’s whole market, could easily see 1,000 fewer homes by the end of the year.

Members cited the new scheme as the main reason for leaving (57%), along with the abolition of Section 21 (37%), tax treatment of landlords (32%), and other government changes (20%).

According to chairman Martin Silman (inset, main picture), the standards and enforcement policies for all HMOs in the city have been rewritten, with many small, incremental changes.

Thousands of pounds

“This means that many properties that were fine when they were last licensed and which would be fine today in Southampton or Brighton, will need many thousands of pounds to be spent in order to meet the heightened local Portsmouth standards,” he says.

Portsmouth landlords have been feeling the pinch for some time; many have been referred to the Valuation Office Agency to have their council tax bands reassessed, while some risk losing their C3/C4 status with no chance of getting it back due to confusion over planning rules.

Net effect

Adds Silman: “Sadly, the PDPLA considers that the net effect of all of these actions by the Lib Dem-led Portsmouth City Council is that it will discriminate against single low-income workers and students from modest backgrounds, driving them from perfectly acceptable and affordable homes in the city.”

One landlord explains: “With income falling, costs rising and a squeeze on tax in the middle, I have come to a decision and will sell property this year, thus removing reasonably-priced student rental rooms from the marketplace.”

Earlier this week, LandlordZONE reported how England’s HMO market has shrunk by more than 21,000 properties in the last two years as local councils ramp up planning rules and licensing schemes.

View Full Article: Landlords slam city’s ‘discriminatory’ HMO licensing scheme

HMO market in England shrinks by 21,000 properties

admin    Uncategorized     agents

England’s house in multiple occupation (HMO) market is still shrinking despite a growing need for affordable rental accommodation, a survey reveals.

The latest figures from Octane Capital show that the number of HMOs has shrunk dramatically by 21,000 properties in the last two years with landlords leaving the sector and tighter licensing regimes being potential reasons for the fall.

View Full Article: HMO market in England shrinks by 21,000 properties

Ending tenancy early but paying for full month?

admin    Uncategorized     agents

Hello, Due to dates/times not quite aligning, I will be moving into a new property midway through the rental period on my current rented property (rolling monthly contract, no arrears or issues).

To save having to drive back and forward between properties to check on the empty rental and being liable for gas/electric/water

View Full Article: Ending tenancy early but paying for full month?

Mould making flat uninhabitable?

admin    Uncategorized     agents

Hello, I have a flat in a listed building which has a flat roof. The roof requires major works which the management committee have been planning for the past two years. All the leaseholders have paid £10K in advance for this work which keeps getting delayed.

View Full Article: Mould making flat uninhabitable?

Scotland’s property boom fuels a big hike in the tax take

admin    Uncategorized     agents

Property taxes in Scotland have increased by nearly a quarter of a billion pounds in the last year, compared to the pre-pandemic period, says a leading property firm.

DJ Alexander has analysed the figures and found that the Scottish Government’s revenues from Land and Buildings Transaction Tax (LBTT) were £247m (62.4%) higher in the 12 months to December 2022

View Full Article: Scotland’s property boom fuels a big hike in the tax take

Why is the Founder of Property118 Selling His Best Property?

admin    Uncategorized     agents

It has nothing whatsoever to do with money!

Due to having no mortgage on this property, Mark wasn’t at all affected by the Section 24 restrictions on finance cost relief or rising interest rates.

As many Property118 Members will know

View Full Article: Why is the Founder of Property118 Selling His Best Property?

Can the Directors only invite ‘share of freeholders’ to the AGM, excluding leaseholders?

admin    Uncategorized     agents

Hello, I wonder if you could answer this query please? I live in a mixed 14 flat block where some are ‘share of freehold’ and some are ‘leasehold’. There is a maintenance/service company in place to whom both groups pay annual charges and two Directors of the company (of freeholders).

View Full Article: Can the Directors only invite ‘share of freeholders’ to the AGM, excluding leaseholders?