Freki Posted October 24, 2019 Report Share Posted October 24, 2019 8 hours ago, pmf170170 said: The guarantee is a personal one rather than from the company. O_o, if it is a LTD (L I M I T E D), it means only the capital invested is at risk and they can't come after your personal assets to make up for it. It's in the name Quote Link to post Share on other sites
iamnumerate Posted October 24, 2019 Report Share Posted October 24, 2019 8 hours ago, pmf170170 said: It depends on whether the rent added to their salary exceeds the higher rate threshold. If it doesn't the basic rate payer is unaffected Surely they are still going to be paying more tax? Quote Link to post Share on other sites
maffo in oxford Posted October 24, 2019 Report Share Posted October 24, 2019 8 hours ago, pmf170170 said: The guarantee is a personal one rather than from the company. The interest rates are higher for LTD as a result. Quote Link to post Share on other sites
maffo in oxford Posted October 24, 2019 Report Share Posted October 24, 2019 (edited) 8 hours ago, pmf170170 said: The guarantee is a personal one rather than from the company. DP Edited October 24, 2019 by maffo in oxford double post Quote Link to post Share on other sites
bear.getting.old Posted October 24, 2019 Report Share Posted October 24, 2019 On 22/09/2019 at 16:13, spacedin said: Tax advisers have warned landlords to consider selling their buy-to-let properties now before a slew of new rules coming in April take a bigger bite out of their already squeezed incomes. The incoming tax changes means property investors could be better off selling now, experts have said, despite the current weakness in the market. House price growth has slowed to 0.7pc, its lowest level in almost a decade, according to figures released by the Land Registry last week, with prices falling by 2pc in the South East and 2.9pc in the North East. Property transactions have dropped by 12pc since this time last year. Panic over now as prices back up in this months LR figures Quote Link to post Share on other sites
ebull Posted October 24, 2019 Report Share Posted October 24, 2019 (edited) Quote The guarantee is a personal one rather than from the company. 7 hours ago, Freki said: O_o, if it is a LTD (L I M I T E D), it means only the capital invested is at risk and they can't come after your personal assets to make up for it. It's in the name If you act as a guarantor to a loan to a limited, your personal assets are on the line if the limited becomes insolvent. That's what being a guarantor means. Your personal assets won't be at risk for any other liabilities than the loan you guaranteed Edited October 24, 2019 by ebull Quote Link to post Share on other sites
GregBowman Posted October 24, 2019 Report Share Posted October 24, 2019 On 03/10/2019 at 16:53, maffo in oxford said: BTL mortgages are extremely difficult to obtain for a LTD company compared to an individual buyer, a company has to have to have an enormous amount of capital to provide a guarantee. Doesn't seem that onerous from one broker: 75% LTV 2.49% Payrate, Fixed for 2 Years 2.5% Arrangement Fee Interest Only available for mortgage term. Standard rental stress in Limited Company, from 125% at 5.5% Unlimited properties in England, Wales & Scotland First time landlords acceptable. Can consider applicants to 80 years of age in a Ltd Company. Subject to status and further lending criteria apply Quote Link to post Share on other sites
goldbug9999 Posted October 25, 2019 Report Share Posted October 25, 2019 I'm noticing that quite a large proportion of low/mid end 3 bedders in my area are "no chain" i.e. vacant. Previously the sort of houses that would be prime BTL fodder. Quote Link to post Share on other sites
Will! Posted November 10, 2019 Report Share Posted November 10, 2019 I'm thinking about using this when I make a cheeky offers to BTL landlords. "I can complete before the Capital Gains Tax changes for buy-to-let landlords take effect." Quote Link to post Share on other sites
simvastatin Posted November 10, 2019 Report Share Posted November 10, 2019 2 hours ago, Will! said: I'm thinking about using this when I make a cheeky offers to BTL landlords. "I can complete before the Capital Gains Tax changes for buy-to-let landlords take effect." You need to find someone desperate to sell not a BTL landlord but a desperate to sell one. Quote Link to post Share on other sites
chronyx Posted November 10, 2019 Report Share Posted November 10, 2019 3 hours ago, Will! said: I'm thinking about using this when I make a cheeky offers to BTL landlords. "I can complete before the Capital Gains Tax changes for buy-to-let landlords take effect." A reverse auction type site would be great "I have £xxxxxx ready to go, I am looking for x in area y. No offers in excess" Quote Link to post Share on other sites
Will! Posted November 10, 2019 Report Share Posted November 10, 2019 On 24/10/2019 at 16:56, GregBowman said: Doesn't seem that onerous from one broker: 75% LTV 2.49% Payrate, Fixed for 2 Years 2.5% Arrangement Fee Interest Only available for mortgage term. Standard rental stress in Limited Company, from 125% at 5.5% Unlimited properties in England, Wales & Scotland First time landlords acceptable. Can consider applicants to 80 years of age in a Ltd Company. Subject to status and further lending criteria apply That looks like quite a good calculation for what a selling price would be from a rental price. (Annual rent/1.25) * (100/5.5) * (100/75) = Selling price? Quote Link to post Share on other sites
GregBowman Posted November 10, 2019 Report Share Posted November 10, 2019 9 minutes ago, Will! said: That looks like quite a good calculation for what a selling price would be from a rental price. (Annual rent/1.25) * (100/5.5) * (100/75) = Selling price? Hadn’t thought of that but yes Quote Link to post Share on other sites
eric pebble Posted July 4, 2020 Report Share Posted July 4, 2020 On 10/11/2019 at 16:23, chronyx said: A reverse auction type site would be great "I have £xxxxxx ready to go, I am looking for x in area y. No offers in excess" ? Quote Link to post Share on other sites
xxxx Posted July 5, 2020 Report Share Posted July 5, 2020 On 11/10/2019 at 4:23 PM, chronyx said: A reverse auction type site would be great "I have £xxxxxx ready to go, I am looking for x in area y. No offers in excess" This is today’s reality. Quote Link to post Share on other sites
Badhairday Posted July 5, 2020 Report Share Posted July 5, 2020 On 26/09/2019 at 23:17, Confusion of VIs said: A quick calc later, I gave him the bad news that if he didn't complete by April and got the price he hoped for his capital gains bill would go up from nothing to about £10k. What are these new Capital Gains Tax changes then? All i could find is that from April, the taxes due would be due immediately instead of a year or so later. Quote Link to post Share on other sites
Confusion of VIs Posted July 5, 2020 Report Share Posted July 5, 2020 7 hours ago, Badhairday said: What are these new Capital Gains Tax changes then? All i could find is that from April, the taxes due would be due immediately instead of a year or so later. I cannot find a good description of the changes to link to, so will attempt one myself. If I have got it wrong someone will be around to say so shortly. The changes affect how your liability for capital gains tax are calculated, if the landlord lived in the property being sold at any point. This could be genuine i.e. the accidental landlord crowd or professional landlords declaring the property as their primary residence while it was being readied for letting or during a void. The reliefs that were removed/reduced in the 20/21 tax year go under the name or private lettings relief. There are two parts to this 1. The last 18 months of ownership being treated as exempt from CGT, this has been reduced to 9 months 2. the first £40,000 of capital gain being exempted. This was removed (there are some minor exceptions) As an example LL buys property in 2010 for 100k lives in it for 6 months and sells it in 2020 just before the end of the tax year Capital gain is 100k less a pro rata reduction for the 6 month period it was lived in by the LL plus 18months. So the gain reduces by 20% to £80k On top of this letting relief reduces the capital gain by £40k so from £80k to £40k reducing the LL's tax bill to £11,200 (28% of £40k). However, if the property was sold a couple of days later the calc would be. Capital gain is 100k less a pro rata reduction for the period it was lived in by the LL plus 9 months. This reduces the capital gain from £100k to £87.5k There is no letting relief so LL pays CGT on £87.5k = £24.5k The resulting increase in the LL tax bill of £13,300, which equates to the property dropping in value overnight by almost £18,500. Quote Link to post Share on other sites
Badhairday Posted July 6, 2020 Report Share Posted July 6, 2020 Oh ok! Thank you for clarifying. Quote Link to post Share on other sites
stop_the_craziness Posted July 6, 2020 Report Share Posted July 6, 2020 That's quite a change. I wonder how many people are aware of it. Also the irony of the housing market shutting down at the exact last point of exit. Quote Link to post Share on other sites
rantnrave Posted July 7, 2020 Report Share Posted July 7, 2020 London rents down 10%... https://propertyindustryeye.com/fear-of-covid-second-wave-is-influencing-london-rentals/ Quote Link to post Share on other sites
highcontrast Posted July 7, 2020 Report Share Posted July 7, 2020 6 hours ago, rantnrave said: London rents down 10%... https://propertyindustryeye.com/fear-of-covid-second-wave-is-influencing-london-rentals/ Oooof! That is very significant is it not? Quote Link to post Share on other sites
msi Posted July 7, 2020 Report Share Posted July 7, 2020 6 hours ago, rantnrave said: London rents down 10%... https://propertyindustryeye.com/fear-of-covid-second-wave-is-influencing-london-rentals/ How much rent is actually being paid? Quote Link to post Share on other sites
Killer Bunny Posted July 7, 2020 Report Share Posted July 7, 2020 "the number of available rental properties was also up by 68% due in part to a lack of corporate relocations and international students" Quote Link to post Share on other sites
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