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1/3 of Landlords with 1 BTL considering selling up - but bigger Landlords want to buy more


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33 minutes ago, mrtickle said:

Hopefully, immediately.

The very notion that BTL landlords are claiming Tax Credits and Child Benefits fills me with rage.

 

+1,000,000

Only in that idiot Brown's mind could you have someone on the the (very high) dole AND own a ~700k portfolio of BTL.

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On 4/22/2018 at 9:52 AM, inbruges said:

Sadly my little sister is not one of them, she has decided to keep hold of her home and rent it out when she moves in with her new partner. That's something else I am going to have thrown in my face at family do's.

I know someone who did something similar (although they were only doing it temporarily whilst working abroad).

The last tenants decided not to pay rent for a year and they had to go to court, it might not go as well as she thinks.

 

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1 hour ago, TonyJ said:

But that's just with a lodger. With a full rental, it would be a different kettle of fish. How do you think they found out, though?

Even with just a lodger, legally,  you need a tenancy and rent book.

Otherwise you risk the lodger making a claim/rights to live their.

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34 minutes ago, spyguy said:

Even with just a lodger, legally,  you need a tenancy and rent book.

Otherwise you risk the lodger making a claim/rights to live their.

Legally you only need a rent book if they pay per week or pay in cash

http://www.lodgerguide.co.uk/how-much-rent-to-charge-your-lodger/

 

Quote

If you accept cash, you should provide your lodger with a printed rent receipt book. You can find a receipt/rent book from most stationers, you can also order one from Amazon…

 

If your lodger agreement is run on a week-by-week basis (not monthly), the law stipulates that you must give your lodger a rent book (regardless of how the rent is paid, even if they pay by standing order).

 

 

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22 minutes ago, iamnumerate said:

Legally you only need a rent book if they pay per week or pay in cash

http://www.lodgerguide.co.uk/how-much-rent-to-charge-your-lodger/

 

 

 

Its not so much that, if the shit hits the fan, a bank could not get a lodger out of a house.

Its the fact it will take time - ~2 years.

In the poster's case I guess the bank would have been burnt with an absent mortgage holder and pub-law lodger, trying to make a claim.

In these sort of cases you can understand why the bank will want everything in writing, belts n braces.

Justice is blind. But its also very very slow.

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33 minutes ago, fru-gal said:

Councils could buy them and house those that can't afford private rent/to buy a home. They could call them "council houses"?

I think a lot of them are probably ex council houses anyway.  It’s the sensible option but there doesn’t seem to be much political will to increase the amount of council houses.  There are boarded up houses in Liverpool, Stoke, the NE that the council could have bought and rented out as social housing but haven’t.

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7 hours ago, mrtickle said:

The very notion that BTL landlords are claiming Tax Credits and Child Benefits fills me with rage.

I actually know someone, an OO with a mortgage got made redundant and decides next step was 3 BTLs. Single mum with 1 child; some sort of nail-bar type non job and lots of benefits. 

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38 minutes ago, Funn3r said:

I actually know someone, an OO with a mortgage got made redundant and decides next step was 3 BTLs. Single mum with 1 child; some sort of nail-bar type non job and lots of benefits. 

GRRRRRRRRR! That ticks every single box! The child has Attention deficit hyperactivity disorder (ADHD) I take it? :(

 

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59 minutes ago, mrtickle said:

GRRRRRRRRR! That ticks every single box! The child has Attention deficit hyperactivity disorder (ADHD) I take it? :(

I know the person very well and good mother, well behaved mid teens child doing well at school, the opposite of what you would stereotypically imagine. 

But ultimately someone happy to be a people farmer. She thinks she is an entrepreneur moving up from being a wage slave. 

I know a couple of other BTLers and one is the complete slime ball you would expect, always going on about "our tenants", now having to talk to him would definitely grip your shit. 

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17 minutes ago, TJHooker said:

And if they get no handouts?

They no problem, they shall pay their tax which is due. If they cannot pay they shall sell the houses. If they can pay, great, it undermines poverty118's predictions of chaos and homelessness. Win-win.

 

 

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23 minutes ago, mrtickle said:

Hmmm. Well I suppose all you can do is remind her of her obligations, proper Landlords buildings insurance not normal domestic, tax, section24, gas safe certificates etc.

A lot of BTL have a sort of quasi-religious belief in the power of positive thought.  There are loads of seminars called Think Rich You'll Be Rich or things like that. 

She is one of them. I could definitely have a conversation about practicalities but would be completely pointless. The only thing that will work is suddenly being faced with a stunning massive tax or similar real-world problem. Sadly (or not) I don't feel that is very far in the future. 

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1 hour ago, Funn3r said:

A lot of BTL have a sort of quasi-religious belief in the power of positive thought.  There are loads of seminars called Think Rich You'll Be Rich or things like that. 

She is one of them. I could definitely have a conversation about practicalities but would be completely pointless. The only thing that will work is suddenly being faced with a stunning massive tax or similar real-world problem. Sadly (or not) I don't feel that is very far in the future. 

 

 

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14 hours ago, Funn3r said:

I actually know someone, an OO with a mortgage got made redundant and decides next step was 3 BTLs. Single mum with 1 child; some sort of nail-bar type non job and lots of benefits. 

I wonder how S24 will affect her, it would have been a lot better if it had happened 17 years ago of course.

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Hmrc aren't even going after the low hanging fruit. I know someone that doesn't pay any tax on BTL as every year they submit expenses saying they paid a builder thousands in cash for work. Then says it's up to HMRC to proove he didn't. Even been reported as it's been going on for years, hmrc haven't done anything and he's still really smug.

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21 hours ago, spyguy said:

Its not so much that, if the shit hits the fan, a bank could not get a lodger out of a house.

Its the fact it will take time - ~2 years.

In the poster's case I guess the bank would have been burnt with an absent mortgage holder and pub-law lodger, trying to make a claim.

In these sort of cases you can understand why the bank will want everything in writing, belts n braces.

Justice is blind. But its also very very slow.

exactly

 

I had to write a letter and the lodger sign it stating that she had no rights over the house. I had a rent a room contract in place as well

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21 minutes ago, Bsmf said:

Hmrc aren't even going after the low hanging fruit. I know someone that doesn't pay any tax on BTL as every year they submit expenses saying they paid a builder thousands in cash for work. Then says it's up to HMRC to proove he didn't. Even been reported as it's been going on for years, hmrc haven't done anything and he's still really smug.

All that is now changing.  It hasn’t been worth HMRC chasing most btl LLs until section 24 as the tax owed probably wasn’t much, if any.  See what happens in early 2019 as it looks like HMRC are getting their aces in place ready for an attack on LLs.

See other posts on Letting Agency Regulations, Connect etc.

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