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moesasji

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Everything posted by moesasji

  1. Thanks for the helpful clarification Pop321! btw) I would slightly nuance the above statement as not everyone here is that familiar with this. My understanding is that with this change the full amount of rent paid will soon count towards someone's income. As a result I would expect that 'accidental' landlords who still work might actually end up in the higher tax band.
  2. The way you phrase this is rather confusing. My understanding is that soon those interest payments are no longer deductable with the tapering already started, see for example: https://www.moneysupermarket.com/landlord-insurance/buy-to-let-tax-relief/ So all that is left is a 20% tax relief on the interest paid. So even without a interest rise some 'accidental' landlords will be in serious trouble...
  3. I'm not really able to advice you on this, but it sounds to me that you don't really have much options as you signed a new contract just before the deadline, which I simply wouldn't have done. Our letting-agency tried the same, which I just ignored as I'm perfectly happy on a rolling contract. Obviously that only works if they didn't issue an S21 at the start of the tenancy. btw) I would expect that the renewal fee should be the one in the old contract, but I'm not a lawyer. Do keep in mind that the difference might actually be VAT btw2) if you have a contract for a year there is no need to ask whether there will be a fee to pay as the law is crystal clear on this!
  4. This sounds too simplistic too me for several reasons as long tenancies help avoid expensive voids and uncertainty. There are also plenty of landlords that manage the property themselves and only use agencies to find tenants. Those landlords will want to avoid having to fork out fees every six months exactly the same reason 12 month tenancies are attractive to tenants at the moment. But most important of all is that landlords can negotiate these fees, while tenants couldn't. I've paid up to 800 pound for these stupid fees....and that was for to rent a place from an agency we rented through already and I pretty sure they also fleeced the landlord. btw) the current government was also looking into making longer tenancies the default, so there might be a more coherent strategy that underpins this.
  5. This is only the case if (i) these renewal fees are written into your existing contract and (ii) if the renewal happens before 31st of May 2020. Not that there will be a deadline in June 2020 when stupid things like "checkout" charges will also disappear for those currently having a contract. See: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791273/TFA_Guidance_for_LandlordsAgents.pdf btw) I've always ignored the pressure to get me to sign a new contract; never had a landlord who was willing to follow through on empty scare-mongering from letting agencies. However you might have been in a different situation with an S21 in play.
  6. It boggles the mind that EAs can give this level of misinformation see the 1st of June listed here: https://www.gov.uk/government/collections/tenant-fees-act The thing to keep in mind is that it is not the start-date of the contract, but the date of the payments that is important. As long as you ensure that you pay any referencing fees, etc after the 1st of June it looks like you will have to get your money back. The explanation here seems pretty thorough: https://www.landlordsguild.com/understanding-the-tenant-fees-act-2019/ and more readable than the original. Alternatively you could look at the official guidance documents here: https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance The good news is also that the silly rules to take out insurance, etc are also outlawed in the same bill! btw) the fine for the first offence appears to be up to 5k; a repeat within 5 years would be more expensive and a criminal offence. So this is bound to cost some landlords/letting agencies serious money if they are not on the ball.
  7. Yes it will, from the 1st of June all of this would be prohibited. See for example: https://www.landlordsguild.com/understanding-the-tenant-fees-act-2019/
  8. FTA and the single market are not the same thing, see for example the (not so enlightening) explanation by the BBC here: http://www.bbc.co.uk/news/business-36083664 In essence an FTA doesn't give the same amount of freedom to move money, products and people between countries within the single market. So especially multinationals will be affected by the difference.
  9. It might be me, but I don't see that much difference from the paperwork I need to supply here in the UK on top of the insane fees. Only one I have so far not had to supply is tax-returns...but that is probably because the work you do. btw) In the UK you have to actually supply copies of passports as well; with all the rest of the information an ideal source for identity-theft.
  10. Credit where credit is due. Farage isn't actually the founder of UKIP, that was Alan Sked in 1993. See for example: http://www.theguardian.com/politics/2014/may/26/ukip-founder-alan-sked-party-become-frankensteins-monster
  11. Being in "charge" without having a plan is not a great position to be in. So far the noise the politicians are making scares the hell out of me as there seems remarkably little thinking of where they actually want to go with statements that clearly are not compatible with reality.
  12. Your right, but if you follow the model from Norway which is the biggest member of the EEA it effectively means that it comes at the price of having to implement EU-law without having much say in the laws itself. So effectively the democratic deficit would get bigger not smaller. Probably the real hope for the UK would be that an EU with two tiers emerges as I doubt the Swiss model would be on the table.
  13. Thinking that Switzerland does not have to implement EU-law to obtain access to the single market is a fantasy.....and having been in China I doubt that is the model to implement for the UK. That is really not what low-paid people would have wished for when voting in the referendum. btw) An interesting read on the Norway and Swiss relationship to the EU from some time ago and what it would mean for the UK: https://www.cer.org.uk/sites/default/files/publications/attachments/pdf/2012/buchan_swiss_norway_11oct12-6427.pdf
  14. One category I can think of is those EU citizens that are most affected, but weren't allowed to vote. This despite paying insane amounts of tax in this country and sometimes having lived here a decade or more...... btw) Obviously the same applies to British expats in the rest of the EU.
  15. Check your rights...the law has changed on when an S21 can be issued at the start of a tenancy as long as you aren't in Wales. See for example http://www.propertyinvestmentproject.co.uk/blog/new-section-21-regulations-2015-landlords-england/ and links to the relevant government site. Bottomline it could very well be that the s21 you got is invalid and you would hence go on a rolling one automatically. btw) this is one of the first times I heard that also for a renewal they charge referencing fees....that is even more outrages than usual. I would get advice and stand your corner....
  16. They don't charge the same....some are just more ridiculous than other. Key is that the tenant has no choice in the matter. To demonstrate how bad it is....our last fees amounted to a mere GBP 622 excluding deposit. Ridiculous to put it mildly. In particular as the letting-agent actually represented our previous landlord from which we rented several years without issues. So I sincerely doubt they did the reference-checks, etc..., btw) I've signed. The sooner this gets banned the better as this system of fees has already cost me >GPB 3000 and for what?
  17. You might consider being a bit less rude as what I quoted here had nothing to do with the financial positions of the landlord..... btw) and yes I have read what I quote, so am perfectly aware that it refers to the PRS as a whole, not just leveraged landlords.
  18. I got that...the fact that most of the current tenants have little financial assets is likely to amplify the losses of those poor landlords as in the end someone will need to buy their loss making investments.
  19. Which is why a very significant fraction of tenants finds it incredibly difficult to save as they still need to live somewhere...hence the graph.
  20. Sorry to burst your bubble, but many bright students with a STEM-degree indeed end up in the financial sector and typically the brighter ones. And frankly I can't blame them seeing the huge gap in salaries that exists. btw) and this includes people having completed PhDs.
  21. Unfortunately neither of those assumptions is likely to be true. Worth looking at the following graph of the financial positions of tenants from http://strategicsociety.org.uk/wp-content/uploads/2013/07/Lord-C-Lloyd-J-and-Barnes-M-2013-Understanding-Landlords.pdf The majority can barely afford the actual move.... btw) same report discusses the position of the average landlord.
  22. Definitely the case for me...for days that I have to physically get in for work I spend >2 hours commuting. Only reason is that housing closer to work with half-decent schools is un-affordable.
  23. As a sign of the mood changing. The Times Higher actually had an extensive piece about this in January, see Priced out: housing cost headaches for universities and staff It had a pretty interesting graph showing how London is one of the most expensive places.
  24. A very interesting link RentierParadisio as it rather surprisingly goes against the common wisdom here. I find the paper linked to in the comments particularly enlightening, see http://strategicsociety.org.uk/wp-content/uploads/2013/07/Lord-C-Lloyd-J-and-Barnes-M-2013-Understanding-Landlords.pdf Looking at that the recent changes to the tax regime might have far less impact then the current thinking here is. Far fewer high-rate tax payers than I had thought...moreover relatively few landlords that own multiple properties.
  25. It would be nice to actually give a source. I assume you refer to the press-release that is scheduled for 11 today? See http://www.bankofengland.co.uk/publications/Pages/news/default.aspx
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