CGT when you own both freehold and leasehold?

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My wife and I jointly own the freehold of a building and I own the four individual leasehold flats contained in this building (as, I hope I am right in saying you are not allowed to own both the freehold and the leasehold of the same building)

If we want to sell one of the leasehold flats can we use both of our CGT allowances against the capital gain?

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Shelter: single mothers, bullying and how to delay eviction

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Polly Neate, CEO of Shelter, was on the Victoria Derbyshire programme on Wednesday. The subject was homeless single mothers. These people are of great importance to  Shelter because it hopes to use them to get a court ruling that discrimination against claimants of housing benefit is unlawful

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Rising London rent yields could stabilise house prices

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Rental Income:

House prices in London are expected to “bottom out� in around 2 years’ time – by the end of 2020.

According to figures generated by houses sales and renting website Home.co.uk, rental yields fundamentally underpin home prices in the capital. Because of this CEO Doug Shephard thinks that after a long period of declining rents, combined with falling prices, rental yields are on the rise again.

Home.co.uk claims it uses search engine technology to build and maintain the most comprehensive database of UK residential properties advertised for sale and rent on the Internet.

During the boom times in London’s property market, house prices soared ahead of rents, says Shepherd. There was an “investment fever� which drove prices up more than 50% in just five years. Meanwhile, rents rose by only 10% over the same time period, causing yields to collapse, Shepherd explains.

His report says that prices fell by around 2.3% over the last year, while rents have increased by 4.3%, and a lack of supply means that rents are on the increase again for suitable rental accommodation.

Shepherd claims that lower capital values, higher landlord taxation and more regulations have all served to disincentives investors from buying more properties in London. Plus all this has encouraged many landlords to leave the rental market altogether, hence a drop in the supply of rentals. It now results in a steep fall in supply of 21% over the last 12 months.

Currently the typical gross rental yields in London is around 3.7%, too low to be attractive for buy-to-let investors, and in prime central London locations yields are even worse, shifting investment outside of London.

At the same time, the average yield across England and Wales in August was about 4.7%, while some Northern cities can top 6%.

With counter trends of sliding prices and rising London rents, Shephard estimates that London rental yields could reach as high as 6% by the end of 2020. This he thinks would result in a resurgence of investment, which would have the effect of stabilising property prices.

“We expect some significant rent hikes over the next two years as tenants compete to secure a home in the capital, and this will accelerate the rise in yields.

“Sufficient yield recovery will prompt landlords to invest once more in London’s vital Private Rented Sector although, should rent controls be imposed, they will almost certainly stay away.�

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Rising London rent yields could stabilise house prices | LandlordZONE.

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Irish “caring” Budget re-introduces 100% mortgage interest tax relief

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The Finance Minister for Ireland, Paschal Donohoe, described his budget as a “caring� budget that will secure Ireland’s future. Donohoe confirmed landlords would receive relief of up to 100% of the interest paid on loans for the purchase or refurbishment of residential property.

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Notice Period for Company Lets?

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I have let a house to a company under a company let. The lease allows me to give one month’s notice at any time after 6 months.

When I give notice, I was unclear whether the eviction date needs to coincide with the rent date?

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Much-coveted B1 post code opportunity

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One BHM is a new buy to let in Birmingham city centre, occupying a much-coveted B1 post code. It is a collection of 165 one, two, and three-bedroom apartments based in Birmingham’s city centre.

The location is ideal for young professionals wanting a convenient commute to work and is also close to several attractions such as Brindley Place (a popular eating and drinking destination)

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AXA study shows why politicians chase the tenant vote

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Future elections are set to be influenced much more powerfully by the UK’s growing contingent of private renters than ever before, suggests new research from AXA Insurance*. While 53% of private renters voted in 2017 – a noticeable jump on previous elections

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New Tenancy rules could trigger evictions or rent rises

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Shared Homes:

New tenancy rules issued on the 1^st of October mean that any shared home with five or more residents from more than one family come under the mandatory Houses in Multiple Occupation (HMO) licensing regulations.

Many landlords rent out shared homes and now that the three-storey rule has gone, even a bungalow could be caught in the mandatory HMO licensing system.

For some landlords this could mean having to spend thousands bringing their properties up to the correct HMO safety and room size standards, with fire doors, hardwired fire alarms etc.

Of course, any house housing five or more unrelated tenants was a HMO in the first place, but it was not necessarily licensable unless it had three storeys. Now, with these new rules local authorities will look to impose their own interpretation of the rules which are generally quite demanding.

This puts many landlords in a dilemma: do they evict some tenants to bring the occupancy level below five, which means their income will decrease, or do they apply for a licence, possibly involving a large investment, increasing their costs. Either way they will likely be looking to recover some of that loss of income or cost by way of a rent increase.

The new rules on minimum room sizes mean that in some cases alterations needed to the property could be substantial, or if the minimum room sizes cannot be met, some tenants may have to go.

It is thought that since October 1, around an extra 160,000 houses will be caught in the mandatory licensing trap, and landlords should already have applied for a license and taken the necessary steps to ensure compliance. The rule change means many more properties will be required to be inspected and certificated by local authorities.

Often people see living in an HMO as a cheaper option. They are happy to put up with poor conditions, and many of these shared houses are in very poor condition, either to save up for a deposit, or if they are in low paid work.

Now, with a government drive to improve conditions in HMOs, they are likely in future to be not so much a cheap option.

One tenant in Leeds told the BBC:

“Property prices are so high, so saving for a deposit is hard work, and rents for one-bed flats are extortionate. So the only way I can afford to build a deposit is to live in a HMO.

“It’s a sociable way to rent, but the quality of the properties can vary. I’ve had HMOs where gas leaks have been common, carpets haven’t been fitted and whole kitchen units have fallen off the wall.

“If rents do go up because of this new legislation I’ve got friends who’ll struggle to pay their rent because they just haven’t got the cash.”

It has been estimated by The Centre for Economics and Business Research that this new licensing process will cost landlords an average of £1,200 each, and in total, over £95m.

The new rules only apply to properties in England. They focus on safety issues in the property and also to improving the environment where HMOs are located. Neighbour problems are commonplace with HMOs, often having unsightly bins out front. Landlords will now be required to provide appropriate space for an adequate number of refuse bins.

See – HMO Licensing Requirements

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – New Tenancy rules could trigger evictions or rent rises | LandlordZONE.

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Do you need Unoccupied Property Insurance?

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If your own residential or landlord property then you need to be sure you are insured when the property is empty. You’ll find in most insurance policies that unoccupancy is not well catered for and could end up costing you thousands of pounds in a claim due to small print.

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Swiss Franc mortgage losses – Double tax whammy?

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I have a question regarding losses due to currency fluctuations and capital gains tax.

I bought several apartments in Poland during the period 2006 to 2008 using Swiss franc mortgages. As is well known to those involved in the Eastern European property market at the time

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