Saving tax on buy-to-let

I've been beavering away over the last week trying to get my dreaded self assessment tax return filed before the deadline of 31st January 2011.  I'm obviously keen to pay as little tax on my residential investments as possible. For the benefit of other landlords I've shared below some of my best tips for saving tax on your buy-to-let portfolio.

Saving property tax guides

As in previous years, I'm using HMRC online tax filing software which apart from a few glitches seems to works pretty well.  I've also being using Property Hawk's FREE online software to calculate using the accruals method the rental profits on my properties.

The tax year being assessed is the 09/10 which runs from 5th April 09 to 6th April 10.  For me it's one where the impact of low interest rates has seen many landlords including myself making unprecedented rental profits.  This is where landlords who have carried forward their rental losses in previous year benefit as it is possible to off set these against your rental profits reducing massively in some cases a landlords tax liability.

Where landlords use their on home as an office to manage their rental property remember it is quite acceptable to claim as an expense the costs of doing this.

In deciding whether an item qualifies as an expense then a landlord needs to apply the rule of "wholly and exclusively" required for the lettings business.  That said, between me and you.  If you do include an expense that does not exactly meet this rule.  The chances of the taxman run off his feet at this time of year picking it up?  Small but it is a risk.

Here are some other articles that should be helpful to keep your property tax to a minimum:

Landlords 5 ways to slash your tax

Saving tax by splitting the rent

Ten innovative ways to save tax

Every landlord should claim £156


Further expert tax advice

Landlords sweet music

....... some positive thoughts to get you into the Christmas spirit.

Merry Christmas from Property Hawk

Apprentice found guilty

Is this what it takes to become the Apprentice?

Chris Farrel who appeared in this years series ( he was the little organised marine character ) has just been found guilty of fraud by Plymouth magistrates Court.

The ex - mortgage advisor was found guilty of altering the incomes of mortgage applicants to 'help them obtain a mortgage'.

Chris who was paid on a commission basis would help applicants meet criteria to enable him to achieve his targets and bonus payments.

Now would Alan call that creative thinking or just lying and breaking the law?

For the full story read here

As I remember Chris was very organised in the bakery so may be better placed in a biscuit factory where the worst he can do is eat a few too many custard creams.

For honest, expert BTL mortgage advice

Property price twitter - Xmas

Ho, ho, ho fellow landlords .... enjoy Christmas and New year, because 2011 could be a little bit of a white knuckle ride for some of us.

Any highly geared landlords out there should be keeping any presents this year fully wrapped and if possible get hold of the receipt ready to return for a cash refund in the new year.

Any spare cash may be useful if interest rates start to rise and rents fail to cover repayments, anyway enjoy your turkey......

Interest rates to hit 5 percent - Daily Mail
Mortgage lending at 20 month low - BBC
Homeowners should prepare for 5 percent interest rates - Telegraph
What will happen to houseprices in 2011 poll? - Guardian
RICS say 2 percent fall in house prices in 2011 - Guardian
Should you buy property to protect against inflation - Moneyweek
RICS report further slowing of housing market - RICS
House prices to drop 7 percent next year - Telegraph
Where are Uk house prices heading - indices - Moneyweek

See all the property price tweets

Cheap online tenant reference

Buy-to-let: 2010 to 2011

The past year has seen vast fluctuations in price and opinion with regard to the housing market, but one thing everyone in the industry seems to agree on is the boom in the rental market.

Throughout 2010 estate agents reported on unstable house prices, unemployment figures hit an all time high, lenders remained cautious, as a result the number of mortgage approvals remained low and demand for property to let increased two-fold.

The picture is expected to remain the same for the year to come, with a hike in interest rates on the cards, which could see many people forced out of their homes and into rental accommodation, whilst rents continue to climb – conversely there are some speculators on the rental market who are looking to a new approach to the industry, ‘build to let’. The idea being that if the property market remains fairly static the option of building for rental purposes can offer a highly cost effective and quantifiable approach compared to renovation or conversion.

Whilst the rest of the economy took a battering during 2010, the buy-to-let sector saw a few important concessions that allowed it to remain a highly viable option if you had the time and collateral to invest. The Budget and changes to capital gains didn’t hit landlords as hard as expected, whilst lenders who retracted lending agreements at the height of the recession have reintroduced buy-to-let products.

Many experts predict that 2011 will be a particularly fortuitous year to purchase property, with extra pressure on banks to lend, deflated prices and the huge rental potential – whilst in London the final preparations will be underway for the 2012 Olympics which will no doubt see the London lettings market boom, with the opportunity to maximise on rental potential ripe.

Gas Safety Checks - deadline

Well it's Christmas and for me it means the deadline for my Gas Safety Checks (GSC).

This is serious for a landlord with gas appliances.  Whilst recent legislation indicates landlords can play fast and loose with their tenants deposits.  If something happens to your tenants and you have not got a CP12 Landlord Safety Certificate.  You are in big trouble.

The rather taciturn Scott has just done mine for the 3rd year running.  Forty quid each for two appliances.  I thought that was pretty cheap.  Maybe that's while he's not smiling!

Landlord insurance - professional rates

Rents climb to record

The latest rental figures from LSL Property Services show that the average UK rent climbed to a record £692 in November.  This is the third month in a row that a record has been broken.

However, the amount of growth at 0.1% was the smallest since February when rents began their rising trend.  The overall rise is largely down to strong rental growth in London where rents grew by 1.8% over the last month off setting falls in other parts of the UK.

This fact is probably due to the seasonal dip highlighted by rental figures from the Rentindex which measures actual rents agreed by landlords as a posed to asking rents by the letting agent.

Discounted tenant reference

Terminating by text

Property Sparrow's fingers are freezing. She's just written to Santa to ask for some gloves, some of those where you can still move your fingers on keyboards and phones.

In temperatures above zero degrees, it's normally quick and easy to send a text message. However, if one of your tenants has sent a text to give notice on a tenancy, you might want to read these posts about whether to accept it as a form of notice or not. It may not be valid because it's a method that is open to abuse.

Property Sparrow hopes that you are all keeping warm. Happy Christmas.

Free property management software, Free tenancy agreements

Lending to push prices lower

The Council of Mortgage Lenders has warned that house prices next year could be forced lower as lenders become even more cautionary in their lending policy.  They warned that:

“From April next year onwards, lenders will begin to have to repay the funding advanced through official support schemes. This is likely to limit the availability of credit to support mortgage lending next year and beyond.”

The CML is predicting 0.86 million housing transactions next year, down from this year’s estimate of 0.89 million.  It thinks the number of loans will shrink to £6bn, down from an estimated £9bn this year. It also thinks that arrears will climb from 175,000 to 180,000 and that possessions next year will creep up from 36,000 to 40,000. It has also forecast that remortgaging will remain subdued.

All this means that landlords with access to funds and capital should next year be able to pick up residential investment properties at very competitive prices.

Best rates - Landlord Insurance

BTL mortgages - most popular

Interest Rate	Overall Cost for Comparison	Max LTV	Product Detail	Completion Fee	Early Repayment Charges
3.88% Tracker	4.1% APR	75%	Variable tracker rate of BBR + 3.38% for the lifetime of the loan. This product is available up to 75% LTV and there is a rental calculation of 100% at a notional rate of 8.5%. An application fee will apply. Available on a repayment basis only. The completion fee is payable at offer stage. Refer all cases for fees, maximum LTV and loan amounts.	0%	1% of original balance being repaid for 1 year
3.89% Tracker	5.4% APR	70%	Light refurbishment product. Variable tracker rate of BBR + 3.39% until 29/02/2012 then reverting to the lender's standard variable rate which is currently 4.99% for the remiander of the term. This product is available up to 70% LTV and there is a rental calculation of 125% at a notional rate of 4.99%. An application fee will apply.	3.5% (min £595)	3% of amount being repaid until 29/02/2012
4.5% Tracker	5.1% APR	75%	Variable tracker rate of BBR + 4.00% for 2 years then reverting to a variable rate of BBR + 4.24% for the remainder of the term. This product is available up to 75% LTV and the rental calculation is 125% at payrate. An application fee will apply.	2%	3% of amount being repaid for 2 years
4.69% Fixed	5.2% APR	60%	Fixed rate of 4.69% until 31/12/2012 then reverting to the lender's standard variable rate (SVR) which is currently 4.99% for the remainder of the term.This product is available up to 60% LTV and the rental calculation is 125% at 4.99% (SVR). An application fee will apply. Free legal fees for remortgages.	£999	4% of original balance being repaid until 31/12/2012
4.79% Fixed	4.8% APR	70%	Fixed rate of 4.79% until 31/01/2012 then reverting to a variable rate of BBR + 3.99% to give a current rate of 4.49% for the remainder of the term. This product is available up to 70% LTV and there is a rental calculation of 125% at the reversionary rate. An application fee will apply.	£2495	2% of the amount being repaid until 31/01/2012.
4.8% Fixed	5.2% APR	75%	Fixed rate of 4.80% until 01/02/2013 then reverting to a variable of BBR + 4.24% to give a current rate of 4.74% for the remainder of the term. The product is available up to 75% LTV and the rental calculation is 125% at the payrate. An application fee will apply.	2.5%	3% of amount being repaid until 01/02/2013
4.8% Tracker	5.5% APR	75%	Variable tracker rate of LIBOR + 4.00% for 2 years then reverting to the lender's standard variable rate of 4.60% + 0.25% = 4.85% to the end of year 5, then for the remainder of the term, the lender's standard variable rate of 4.60% + 0.75% = 5.35%. The product is available up to 75% LTV and the rental calculation is 130% at a notional rate of 7%. Please note that the completion fee will increase by 0.25% on applications for HMOs, freehold houses split into flats and limited companies. An application fee will apply.	2.25%	3% of amount being repaid for 2 years
4.99% Fixed	5.5% APR	80%	Fixed rate of 4.99% until 29/02/2012 then reverting to the lender's standard variable rate which is currently 4.99% for the remainder of the term. This product is available up to 80% LTV and there is a rental calculation of 125% at payrate. An application fee will apply.	3% (min £595)	5% of amount being repaid until 29/02/2012
5.5% Fixed	5.7% APR	75%	Fixed rate of 5.5% for 2 years then reverting to the lender's standard variable rate of 4.60% + 0.25% = 4.85% to the end of year 5, then for the remainder of the term, the lender's standard variable rate of 4.60% + 0.75% = 5.35%. This product is available up to 75% LTV and there is a rental calculation of 130% at a notional rate of 7%. Please note that the completion fee will increase by 0.25% on applications for HMOs, freehold houses split into flats and limited companies. An application fee will apply.	2.25%	5% of amount being repaid for 2 years
5.59% Fixed	5.2% APR	70%	5.59% fixed rate until 01/02/2013 then reverting to the lender's standard variable rate which is currently 4.79% for the remainder of the term. This product is available up to 70% LTV and the rental calculation is 120% at payrate. An application fee will apply.	£1995	4% of the outstanding balance as of 1st January until 01/02/2013

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice.
Please check our website regularly to see the most up-to-date products available.

Please visit www.propertyhawk.co.uk/mortgages.aspx to search the full product range and find a buy-to-let mortgage to suit your specific personal circumstances.

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

Your home may be repossessed if you do not keep up repayments on your mortgages. The Financial Services Authority does not regulate some forms of mortgage.

Fractional Ownership

Fractional Ownership – The Affordable Place in the Sun

The nights are longer, the temperature has dropped and all around people are exclaiming how cold it is. Winter is almost upon us and yes, it’s going to get even colder! It’s no wonder that at this time of year many of us dream of buying a second home in warmer climes; and for many, it no longer has to be a dream as fractional ownership is fast gaining popularity in Europe.

Essentially it means that a group of investors can club together to buy a property, hence owning a ‘fraction’ of it themselves. The vital components of the agreement such as preferred dates of usage and maintenance costs are agreed before the sale completes. It can make an expensive property, such as a French Chateau which may cost £2million seems far better value for money. Hence a group of 8 buyers each purchase the fraction at £250K each and still get the same value (four to six weeks per year) for their money.

The concept first developed in the United States in the 1980’s and early 1990’s was predominately used for yacht ownership. It meant that this industry opened up to other enthusiasts who may not have been able to afford the price tag of a whole yacht but were happy to share the vessel with other like-minded people. Of course the scheme has to be managed correctly but like any freehold title, there are full rights for transfer of ownership if a sale is required.


One disadvantage that outright and fractional ownership may have is the sense of obligation that the owner(s) may feel they have to return to the same place every year for their holidays. This is where membership clubs and resort residences come into their own and may provide a better (and in some cases more affordable solution) to owning a property abroad.

With a membership club, an annual subscription is charged which entitles the member to use a selection of houses for rent around the world. It will mean that you never ‘own’ a property as they are held by the membership company but you will get a choice of properties that you can stay in for agreed length of time. Often homes are categorised with a point system; a stay in a Balinese spa hotel may cost more points than two-weeks in a Tuscan apartment. There are various levels of membership to suit all budgets and it offers considerable flexibility for the buyer who likes to holiday in a variety of places.

In the same vein are resort residences although this combines hotel luxury with outright ownership. It tends to suit those at the top end of the international market as the prices can be high. Essentially it gives people the opportunity to own a residence on a hotel site with the benefits such as use of spa, golf and favourable discounts for food and beverage bills as part of the package. Owners can also negotiate with the hotelier for rents when the property is unoccupied.

Although fractional ownership seems to be the sensible way for owners to invest, some of these other options could suit both the pocket and the holiday mindset of the discerning traveller looking for that perfect place in the sun.

Property guru bites the dust

Another so called property guru offering BMV property has bitten the dust. People like this with no professional training or educational background in property should stick to selling double glazing. They shouldn't advise inexperienced individuals and investor about things they no nothing about. Clearly they are not very good at dealing with money! Be warned if you buy property in haste you will often repent in leisure.

In his own words:

Dear Friends, Colleagues and Clients,

It is with much regret and a heavy heart that I am sending you this letter.

My company, Rapid Property buyers Ltd, has ceased trading and has entered into voluntary liquidation, there are no assets or capital (please refer to my statement sent 2 weeks ago, by way of background).

I will be staying in office as Director to fulfil my obligations and facilitate the liquidation of the company. The liquidation will be handled by Tim Heasle-grave, The Redfern Partnership, 29 Jury Street, Warwick. CV34 4EH 01926 497 722, please address all future enquiries relating to the company to them.

In addition to this, at 10:51 this morning, primarily due to the personal guarantees I offered investors and a massive libel lawsuit from Harlequin Property (caused by my support for investors posts on SingingPig.co.uk), I was forced into personal bankruptcy.

My personal Bankruptcy will be handled by M P Dunn, Official Receiver, SOL House, 29 St Katherine Street, Northampton NN1 2QZ, please quote reference 0457 of 2010. Please address all enquiries relating to my personal bankruptcy to the Official Receiver and they will contact you directly in due course.

I have taken an employed position with Rapid Property Deals Ltd which will focus on the core business of providing quality property deals to investors.

It is within this role that I would hope to:

a) Satisfy the portfolio builder services that Rapid Property Buyers Ltd had planned to fulfil before it ceased trading

And

b) Generate income sufficient to repay all of my creditors and past clients within a reasonable period of time.

I would stress that neither Rapid Property Deals Ltd nor myself personally are under any legal obligation to offer this. I offer this on a personal basis, without personal guarantees, formal agreements nor contracted timescales.

I am currently going through a type of grieving process and would ask for some patience and time to rebuild, I have lost most of what I have worked for over the last 4 years, not just material things but confidence, friends and reputation.

Many people will be rightly distressed and upset at this outcome. I do accept full responsibility for the failure of the business projects and for taking uninsured risks.

I apologise unreservedly to everyone, I am truly sorry.

I respectfully request that I now be allowed to spend time with my family and that the Official Receiver and the Liquidator named above handle all enquiries in the appropriate manner as defined by English law.

To this end, please support my efforts to remain in the property industry. If you feel you are not able to support me, I would ask that you refrain from disseminating information that is baseless or inaccurate as this will not help anyone moving forward.

After this healing period, I hope to begin to move forward next year and will keep you, together with all of my clients and creditors, informed of progress.

One day, I hope to be able to hold my head high again, having honoured all of my original intentions.

Yours Faithfully,


Phil Martin


Free property management software, Free tenancy agreements

Property spatial awareness

How to make your home look bigger without pushing the walls back…

The property particulars put together by your estate agent will no doubt have the square footage of your home there, in black and white, for all prospective buyers to see. But no matter how diminutive your property, you can create an illusion of larger rooms and reduce those figures to mere numbers on a page.

1. Let natural light stream in: throw open curtains and raise blinds.
2. Increase the efficacy of doing this by ensuring window panes are sparkling clean.
3. Employ every interior designer’s favourite trick – mirrors. Cunningly hung opposite windows or other mirrors, they will maximize a sense of light, airy spaciousness.
4. If procrastination is the thief of time, then clutter is the thief of space. A room with positively enormous dimensions will still seem smaller if it is chockablock full of … stuff. Pare your possessions right down to ensure that what prospective buyers see is the room, not evidence of the fact that you spent a year travelling through South America as a student.
5. Pay attention to the dimensions of your furniture in comparison to the room it inhabits. Grand dining room furniture in a small dining space will simply look too big, thus in turn making the room look too small.

Pensions, property & hypocrisy

Anybody who is member of a private or public sector private sector pension scheme who is not about to retire in the next few years needs to prepare for a shock. I'm mindful of the latest reports on the local government pension deficit which according to reports from the BBC is £100bn or 7% of GDP. Unlike private companies and their pensions who have to account for their deficits on their balance sheet...the public sector gets away with a massive fudge! There's hypocrisy for you.

Whenever you had planned to retire. Forget it!

Do you really think that with our rapidly ageing population, increasing life expectancy, gargantuan public sector debt and the rise of the Asian economic powers that we are going to be able to retire at 65...67...70. Not a chance....get real.

Imagine a pyramid that is rapidly inverting. Thirty years ago. There were a few oldies and the vast majority of us working to support the small numbers of people lucky enough to survive past 70. In the next few years there will be less and less of people of working age or working because of the downturn. These peoples taxes will have to support an increasing number of people that have retired and will be drawing pensions for many more years than originally planned.

Somethings got to give!

I'm not a property investing zealot by any means. I have a range of investments from bonds to shares and obviously a residential property portfolio. I'm glad however that I put much of my effort early on into a property portfolio rather than relying on the vagaries of a pension. I know that I have a reliable rental and income stream and hopefully in the long run an appreciating asset base.

Most of all I am glad that I'm not reliant on the promises of politicians who don't have the courage to come clean and tell us the truth about pensions.

Anybody who is keen to retire before they are 80 might do well not to believe the platitudes and projections of the politicians and the pension companies. Just like the last government who glibly and naively promised prudence in the public finances. There is a convenient truth and reality. Bricks and mortar continue to be a more real form of investing for your future than most alternatives.

Landlord insurance best rates

Everything crossed @ Xmas!

We were talking amongst our selves the other day in the Property Hawk office and discussing what we fear most at Xmas.

Its definitely the dreaded text or message from your tenant to say that the boiler has packed in.

The scenario of one of your tenants freezing their bits off whilst your enjoying a well deserved seasonal pint in front of a raging log fire in your local hostelry is enough to make the most hardened landlord suffer a pang or two of guilt.

I had just this sort of problem last year.  You try getting a plumber on Christmas Eve.  Virtually impossible!  My suggestion.  Get your Xmas list in early to Santa.  Top of it -  that your boilers keep on going until at least after the holiday season.

Gas safety requirements

Property price twitter - bitter

Calls for sing house price index - BBC
First time buyers locked out of falling market - Guardian
Repossessions to rise in 2011 - BBC
Housing market slow down because of lack of buyers - Guardian
UK housing gauge remains low - Bloomberg
Homeowners face repossession - Telegraph
House prices fall faster - Telegraph

See all the property price tweets

Cheap online tenant reference

Section 8 notice, arrears and tenants paying rent

Q. I have served a section 8 notice, my tenant has started paying rent but there are still arrears, what can I do?

A. If your tenant is still in the property when the section 8 notice expires you will have to ask a court to order possession. If there are still two months rent arrears a court will order possession of the property. If however there are less than two months rent arrears, a court would order suspended possession, which means that your tenant can stay in the property provided they pay rent and instalments towards the arrears.

Rebecca Brough is a Solicitor at Fidler and Pepper who deals with Residential Landlords on a daily basis. Rebecca offers landlords requiring legal help a Free initial consultation.

Gambling on house prices

Figures from RBS indicate that the futures market are pricing in a drop of 10% in house prices next year.

RBS is preparing to launch a series of house price derivatives in 2011 according to the FT allowing landlords and other investors to bet on the medium term direction of house prices.

The products launching next year will have a minimum investment of £10,000 and last for 4 or 8 years.

How do house price derivatives work?

Landlord insurance quote

BTL Mortgages - most popular

Interest Rate	Overall Cost for Comparison	Max LTV	Product Detail	Completion Fee	Early Repayment Charges
3.88% Tracker	4.1% APR	75%	Variable tracker rate of BBR + 3.38% for the lifetime of the loan. This product is available up to 75% LTV and there is a rental calculation of 100% at a notional rate of 8.5%. An application fee will apply. Available on a repayment basis only. The completion fee is payable at offer stage. Refer all cases for fees, maximum LTV and loan amounts.	0%	1% of original balance being repaid for 1 year
3.89% Tracker	5.4% APR	70%	Light refurbishment product. Variable tracker rate of BBR + 3.39% until 29/02/2012 then reverting to the lender's standard variable rate which is currently 4.99% for the remiander of the term. This product is available up to 70% LTV and there is a rental calculation of 125% at a notional rate of 4.99%. An application fee will apply.	3.5% (min £595)	3% of amount being repaid until 29/02/2012
4.5% Tracker	5.1% APR	75%	Variable tracker rate of BBR + 4.00% for 2 years then reverting to a variable rate of BBR + 4.24% for the remainder of the term. This product is available up to 75% LTV and the rental calculation is 125% at payrate. An application fee will apply.	2%	3% of amount being repaid for 2 years
4.69% Fixed	5.2% APR	60%	Fixed rate of 4.69% until 31/12/2012 then reverting to the lender's standard variable rate (SVR) which is currently 4.99% for the remainder of the term.This product is available up to 60% LTV and the rental calculation is 125% at 4.99% (SVR). An application fee will apply. Free legal fees for remortgages.	£999	4% of original balance being repaid until 31/12/2012
4.79% Fixed	4.8% APR	70%	Fixed rate of 4.79% until 31/01/2012 then reverting to a variable rate of BBR + 3.99% to give a current rate of 4.49% for the remainder of the term. This product is available up to 70% LTV and there is a rental calculation of 125% at the reversionary rate. An application fee will apply.	£2495	2% of the amount being repaid until 31/01/2012.
4.8% Fixed	5.2% APR	75%	Fixed rate of 4.80% until 01/02/2013 then reverting to a variable of BBR + 4.24% to give a current rate of 4.74% for the remainder of the term. The product is available up to 75% LTV and the rental calculation is 125% at the payrate. An application fee will apply.	2.5%	3% of amount being repaid until 01/02/2013
4.8% Tracker	5.5% APR	75%	Variable tracker rate of LIBOR + 4.00% for 2 years then reverting to the lender's standard variable rate of 4.60% + 0.25% = 4.85% to the end of year 5, then for the remainder of the term, the lender's standard variable rate of 4.60% + 0.75% = 5.35%. The product is available up to 75% LTV and the rental calculation is 130% at a notional rate of 7%. Please note that the completion fee will increase by 0.25% on applications for HMOs, freehold houses split into flats and limited companies. An application fee will apply.	2.25%	3% of amount being repaid for 2 years
4.99% Fixed	5.5% APR	80%	Fixed rate of 4.99% until 29/02/2012 then reverting to the lender's standard variable rate which is currently 4.99% for the remainder of the term. This product is available up to 80% LTV and there is a rental calculation of 125% at payrate. An application fee will apply.	3% (min £595)	5% of amount being repaid until 29/02/2012
5.5% Fixed	5.7% APR	75%	Fixed rate of 5.5% for 2 years then reverting to the lender's standard variable rate of 4.60% + 0.25% = 4.85% to the end of year 5, then for the remainder of the term, the lender's standard variable rate of 4.60% + 0.75% = 5.35%. This product is available up to 75% LTV and there is a rental calculation of 130% at a notional rate of 7%. Please note that the completion fee will increase by 0.25% on applications for HMOs, freehold houses split into flats and limited companies. An application fee will apply.	2.25%	5% of amount being repaid for 2 years
5.59% Fixed	5.2% APR	70%	5.59% fixed rate until 01/02/2013 then reverting to the lender's standard variable rate which is currently 4.79% for the remainder of the term. This product is available up to 70% LTV and the rental calculation is 120% at payrate. An application fee will apply.	£1995	4% of the outstanding balance as of 1st January until 01/02/2013

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice.
Please check our website regularly to see the most up-to-date products available.

Please visit www.propertyhawk.co.uk/mortgages.aspx to search the full product range and find a buy-to-let mortgage to suit your specific personal circumstances.

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

Your home may be repossessed if you do not keep up repayments on your mortgages. The Financial Services Authority does not regulate some forms of mortgage.

---

£295 million of new lending

Specialist buy-to-let lender CHL Mortgages has added a £295 million of buy-to-let loans to its mortgage book.

This takes buy-to-let mortgages under management of the specialist lender to £6.5 billion up 5% in 2010. 

Mortgage Search

Londoners start HA cap exodus

London councils are starting to relocate housing benefit families out of London before the restriction in housing benefit payments come into effect in April next year.

Thirteen London councils say they have already started to rehouse tenants outside London because of the £400 a week housing benefit cap.

Read more in the BBC

The risks in BTL property

Is BTL property a good investment?

I mean surely rents are high at the moment and mortgage interest rates are low, it's got to be a better option than watching your savings dwindle away in a saving account?

.....well maybe, but nothing stays the same.

This Express article highlights some of the downsides to property investing in these uncertain times.

I would say, what's life without risk?

The rise of the rent generation

The Telegraph reports on the move away from the aspiration to buy your first home. Giving anecdotal evidence in the form of some London professional renters who don't feel the urge to jump on the property band wagon.

Do we see this as a generation moving away from Britain's love affair with property to a more European style of long term rental?

Well, no! It's a sign that the housing market is stacked against first time buyers jumping on the ladder and that journalists were struggling with a 'no news day'.

The reality is that most young people still want to buy, but can't, and as pinpointed by this recent BBC article this will continue to stifle the Uk property market.

NB- We have now purchased a ipad stylus so expect more self penned illustrations from us, it brightens the site up a bit.....

BTL mortgage search tool - whole market

Asking prices fall

Asking prices on the property portal Rightmove fell by 3% on average this month or £7000 per property.

Rightmove is also predicting that prices could continue to fall by as much as 10%  as low availability of mortgage finance and a depressed housing market dampens buyers enthusiasm for property purchase.

On a brighter note these all makes it a little bit easier for those purchasers such as landlords that can access buy-to-let finance or have cash to 'bag a bargain' and perhaps secure an early Xmas present!

Landlord insurance - portfolio rates

Tips On Tenancy Deposit Disputes 24: Claiming For Your Time

Tip 24: Claiming for your own time

This is an issue that crops up time and again; how to claim for the time and effort that you have personally spent working on a property. It’s perfectly alright to expect compensation for your own effort but, as with everything else, your claim will be assessed on how reasonable it is.

If you are claiming for your time, keep an accurate record of how many hours you worked and send that in. Invoicing yourself for your own work never looks convincing, so just give the adjudicator the information to make an informed decision. Your hourly rate can also be a contentious issue. The amount that you claim needs to be a competitive rate for the job that you are doing, and should not be a direct reflection of what you could have earned if you weren’t working on your property. If you are a brain surgeon or a partner in a commercial law firm and you value your time in the hundreds of pounds per hour, the adjudicator will expect you to get someone else to do your painting and decorating for you. The best claim is one that supplies evidence that the hourly rate claimed was realistic.

Equally, claims for travel expenses are acceptable if within reason and backed up by evidence, however, I have seen claims from fly-to-let landlords living in the Mediterranean for the cost of return flights, with a week in the UK, to attend to some minor damage in the property. If you live abroad, or even just a long way from your rental property, it will be much more difficult to argue that your travel expenses are a reasonable cost to pass on to the tenant.

Tom Derrett is the Principal of Deposit Claim, an experienced deposit protection adjudicator and an expert on the Deposit Protection Schemes. Tom helps landlords to claim money through the deposit protection schemes.

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Leeds landlord fined

A Leeds landlord has been fined more than £5,000 and ordered to pay almost £2,000 costs over poor conditions in a house he rented out in Headingley and his "complete disregard" for his tenants.

Read more in the Yorkshire Evening post

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Presenting property for sale

Regardless of how the market is performing, sellers simply can’t afford to rest on their laurels when it comes to presenting their homes for sale. Thanks in no small part to a decade or so of television programmes dedicated to home improvements and real estate, buyers are generally a canny bunch, who want the best possible home for their property buying dollar.

So, how to impress such a crowd, especially when potential viewers are likely to have such different tastes? Obviously you can’t please everyone but there are some basic steps you can take to ensure that your property both stands out from the crowd and pleases the crowds.

1. Tidiness and cleanliness ought to go without saying, but you’d be surprised how many people overlook these basic principles. If your property is tenanted, your control over the situation is slightly more limited. Try arranging for a cleaner to attend to the property, at your expense, 2-3 times a week, so that they do not feel that the onus of making the property look appealing falls to them.
2. Attend to any small repairs that you may have been letting slide until now. Leaking taps, damp patches, loose floorboards – all of these can detract from the look of your property.
3. Remember that you are selling a projected lifestyle as well as a home. Homebuyers are, generally speaking, aspirational – they are looking to move to improve their circumstances – so give them something to yearn for. A few well-chosen home accessories - and these might be as simple as an upmarket candle, luxe bathroom toiletries or gleaming tableware – can instantly create a feeling of desirability.
4. The smell of baking bread and freshly brewed coffee is, as we all know, a vendor’s step too far – but that’s not to diminish the importance of a home that smells good. Open windows and let the fresh air circulate before a viewing, and banish your pets from indoors. Remember, even if you can’t pick up on their lingering scent, a newcomer will be able to – so ask a friend or neighbour for their honest olfactory opinion.
5. A fresh coat of paint is an inexpensive facelift for your home, and one that involves minimal disruption. Go neutral so as to create a broad appeal and blank canvas for buyers to imagine their own choice of living room furniture and so on against.
6. Stage key rooms and use props so that buyers can more easily imagine themselves living there. Remember that many people find it difficult to visualize ways to make space work, especially when they are being rushed though on a viewing (which, let’s face it, rarely lasts long). You may use your dining room as a games room and eat from your lap as you watch TV, but it’s useful to get your hands on a table and chairs for the duration of marketing so that buyers can get a sense of the room serving its intended purpose.
7. First impressions count. Keep your front garden, path and entry hall as appealing and welcoming as possible.

Tenancy deposit scheme to stay

The biggest of the Tenancy Deposit Schemes the Deposit Protection Service now holds deposits of over £1.88bn according to Grant Shapps the Housing Minister.

This custodial scheme will stay with the current provider Computershare until 2016.

The two insurance backed schemes run by Mydeposits, run by the National Landlords Association, and the Tenancy Deposit Scheme, backed by ARLA only have a licence with the government to run the scheme until 2013.

It is expected that the government will start renegotiating the agreement for this contract next year.

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Interest rates held at 5%

Only joking!

Just seeing if you were still awake.

No the rate was kept on hold again at 0.5% -  the 21st month in a row.

Long may it continue.



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Tax savings on student lets

For those considering to let to student tenants next year.

Here's a little bit of advice that just might persuade you to take the plunge.  We all love avoiding the taxman don't we.

Another useful tax saving tip when letting to family members is splitting the rent.


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Costs of evicting your tenant

As I know to my cost if you try and evict a tenant then don't expect all your costs to be covered.

It is possible to attempt to reclaim some of the charges including the court costs of £150.

However, miscellaneous costs including the time taken in researching and preparing the case may not be claimable.  This is somewhat of a grey area and I have heard some views that it is possible to make a claim based on a proportion of the expected solicitors fees.

Any further clarification on this would be greatly appreciated.

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Young people wont buy

With half of young people saying they will never buy a house, landlords can expect to see a healthy demand for rental property for many years to come.

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Property price twitter - icy

House price crash amid mortgage 'deep freeze' - Telegraph
Property prices see first fall - Telegraph
The price of gold reveals about UK property prices - Moneyweek
The various property price indices - FT advisor
Mortgage benefit cut could mean thousands lose homes - Guardian


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Landlords get direct payments

An internal Department Work and Pension (DWP) memo to staff has been unearthed by Property Hawk showing that the new coalition government are keen to give the power back to Local Authorities to allow them to make direct payments to landlords.

The December copy of HB Direct advices local councils to allow direct payments when it is perceived to help tenants retain or secure a tenancy.

Given the importance to landlords of this type of payment I would have thought that this should cover practically all tenancies receiving benefit.  The discretion on whether this happens still remains with the LA though.  The government will issue more detailed guidance on this matter very soon according to the same advice note.

To read the full amendment to the Housing Benefit regulations in their entirety then go here.


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