Landlord and BTL Blog

Tuesday, May 18, 2010

'Fire sale' landlords warned

Landlords tempted to sell their buy-to-let properties now to avoid the much vaulted Capital Gains Tax (CGT) rises should be warned that if they sell today, it still may be too late. This is because any future tax increase could be retrospectively enforced according to reports in the Financial Times.

This means that despite a Landlord selling before the tax change is announced their will still incurr the tax liability at the higher rate which could be between 40-50%.

Property Hawk has provided landlords with advice about how a landlord can minimise their Capital Gains Tax liability should they sell and these methods can be employed whatever the CGT rate becomes.

Expert Tax Advice

How to renew a tenancy

I was recently contacted by a Property Hawk user asking me how to renew a tenancy.

There are a number of options open to a landlord who wishes to renew a tenancy to existing an existing tenant.

I have recently written an article outlining how landlords need to go about renewing the tenancy where they are happy to re-let their buy-to-let property to existing tenants.

Landlord insurance

Monday, May 17, 2010

Still battered

Property Sparrow is still very anxious about one of her flats, the one with the roof leak.

There has been a lot of activity lately but no solution.

The freeholder's managing agent appointed a Surveyor and at long last there is a proper specification for the roof repairs. Property Sparrow has forced herself to read every word of it. She has tried to grasp statements such as 'Fix stainless steel bell drip detail immediately above flashing and re-render in two coats (scratch and top) of sand cement render, rations 4 parts to 1 part accurately mixed with Sika No.1 waterproofing additive. ' Stainless steel? Property Sparrow thought that was for sinks.

The work went out to tender and three quotes were returned. The managing agent then issued a section 20ZA notice to the four leaseholders in the block. This is where the freeholder applies to the Leasehold Valuation Tribunal (LVT) to dispense with the consultation requirements of the Landlord & Tenant Act 1985 and the Service Charges (Consultation Requirements) (England) Regulations 2003. An application can be made in situations like this where properties are being damaged by rainwater. A Fast Track application has been requested. This is what Property Sparrow has been waiting for since February. The Surveyor said that the work could start on 24 May.

The leaseholders were asked to return a form to the LVT to confirm their agreement that the work can go ahead straightaway without the normal Section 20 consultation. It was the deadline for replies last Friday and Property Sparrow has heard that three leaseholders are in agreement that the work can go ahead now but one of the leaseholders on the ground floor has objected and demands that a hearing is held by the LVT and that the full s.20 consultation should apply. This will take at least two months.

Without the warm sunshine today Property Sparrow would have felt very miserable indeed.

To be continued.

Free property management software, Free tenancy agreements

HIPS suspension imminent

The HIPS suspension is to be announced this week in parliament according to Estate Agency Today.

Apparently the HIP Reform Group is going to try to launch a legal battle to prevent it saying that it believes it to be an“unlawful use of the statutory power (section 162). It could therefore be challenged in the Court and complaining that  “Suspension of the HIP would kill our industry overnight. "

To me it sounds like a victory for common sense but a disaster for clip board wielding form tickers.

Maybe they should look for a job of equal use, like stick whittling or maybe something actually useful like nursing or teaching, that's a thought!

For a fuller and counter argument read this appraisal of the implications of scrapping HIPs.

Get an EPC here - (the only useful bit of HIPS)

BTL lenders are feeling happier

It come as some relief to see the continued improvements in the BTL mortgage lenders mood.

These grumpy old bears have been showing a real up turn in their mood towards landlords and property investors with a whole gaggle of BTL lenders starting to lend 80 percent LTV's again.

Read more on the BTL mortgage brokers sunnier disposition in the Guardian including the talk that Paragon could be lending again by June or July.

Bring on the summer!

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CGT rise panic sale

Landlords are going to have to act sharp to avoid the new higher rates of Capital Gains Tax and even then the Government may back date it to capture any rush of sales from property investors trying to grab the 18 percent rate before it zooms up to 40 percent or even 50 percent.