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Margin Calls On Buy To Let Properties


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29 minutes ago, chas said:

if so there must be billions in unpaid CGT out there as most of the muppets don't realise that they might be liable?

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When a property is disposed, it is subject to the application of Capital Gains Tax or CGT. It is the duty of the conveyancing solicitor to explain to his client that selling the property may attract CGT.

http://www.phewconveyancing.co.uk/articles/basic-principles-of-the-capital-gains-tax-and-excemptions

There is no way that they could get through the process of actually selling the property without realising that they were liable.

Failure to pay would be tax evasion, which is a crime.

People who might like to avoid tax often baulk at criminality, and also - as you indicate - there is ample scope for HMRC to trace such transactions.

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8 hours ago, Neverwhere said:

.

I'm not sure that all lenders will realise the degree to which there might be a brutal race for equity until they are actually confronted with one. If they were I think they would be pricing BTL loans differently. However, it seems to me that if confronted with an avoidable loss as a result of inaction in such a matter they will become much more alert to these risks, and will start to act accordingly, so if such scenarios do start to present themselves they may well accelerate with time.

You do mean mid to late career managers in said institutions whose main concerns are their next promotion, their next company car, and, indeed, the state of their own btl portfolio?

 

Denial is indeed, from their current POV, a water conduit in North Africa.

 

(So basically I agree with you)

Edited by Si1
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9 hours ago, chas said:

I'm interested in the CGT issue, poor leveraged Btls can't sell as they won't have the equity to pay the CGT.

does HMRC use land registry info to collect CGT? Or do they rely on BTLs to self report?

if so there must be billions in unpaid CGT out there as most of the muppets don't realise that they might be liable?

chas

Pincer of S24 and CGT.

The off-topic thread about National Insurance the other week.  It encouraged me to help a relative sign up to the Gateway, to check their position.  Doesn't have a valid passport.  The system asked him two questions to verify his identity, one of which was which Credit Card provider he in 2004, with 3 multiple choice answers.  Was bit impressed.

Although perhaps that is all on standard credit check files?  I have never checked my own credit score, for I am pretty sure it has to be high/perfect.   Just like a Lannister, Venger always pays his debts.  It's pretty simple really.  Debt = a promise to repay.  Freewill choice to take on debt, lay claim to loads of homes, repay it, or some consequences.  And look at world around you.  Realities changed many times over during the years.  

Of which... watched this yesterday.  New PT video.  No one drags anyone into claiming 37 properties.  37.  Okay for you is it?

Some BTLer with 37 properties (memory) repo'd.  The BTLers seeing their BTLs as so close to their own identity ("put so much into it")- all those properties just for them yeah baby, in their disconnected supreme me-me outlooks.  

Apparently the negative equity intermediary managed to come to a deal where she kept her own home.   The sadness of distress of losing all those homes, into pure nothing..... err apart from probability of many other market participants able to get a chance of homeownership at much lower prices.    Welcome to the real world.

Northern Ireland iirc.  Recent case? 

 

 

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15 hours ago, Si1 said:

You do mean mid to late career managers in said institutions whose main concerns are their next promotion, their next company car, and, indeed, the state of their own btl portfolio?

 

Denial is indeed, from their current POV, a water conduit in North Africa.

 

(So basically I agree with you)

Obviously not quite the same thing but I can't help feel there is a similarity of attitude...

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21 minutes ago, Assume The Opposite said:

A colleague at work is buying a house and apparently they are allowed to use a loan as a deposit...:lol::lol: Santander I believe

 

I thought hat was banned - or at least took into account when working leverage.

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14 minutes ago, Assume The Opposite said:

A colleague at work is buying a house and apparently they are allowed to use a loan as a deposit...:lol::lol: Santander I believe

 

I am old enough to remember when you were not allowed to borrow to borrow. Seemed like an entirely reasonable premise. BTL loans with deposits borrowed from equity literally chucked that out with the trash. Now banks lend you money so you can borrow even more money :wacko: 

Would be funny if it wasn't so desperate and damaging. 

    

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  • 1 year later...

Should be noted that Dr Beck is the nation's leading "academic portfolio landlord"*. Fans of BTL margin calls may be interested to read this recent post of hers:

Quote

Dr Rosalind Beck

Reply to the comment left by NW Landlord at 21/02/2018 - 09:43


All the individual mortgages you hold with them have to be at 85% or less LTV. If any are eg 88% then they ask you to top them up.

Source

* Also the Bosh is the nation's only "academic portfolio landlord" as the label appears to have invented by Bosher for Bosher.

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1 hour ago, Beary McBearface said:

Should be noted that Dr Beck is the nation's leading "academic portfolio landlord"*. Fans of BTL margin calls may be interested to read this recent post of hers:

Source

* Also the Bosh is the nation's only "academic portfolio landlord" as the label appears to have invented by Bosher for Bosher.

Excellent. Out of interest I've been meaning to ask for a while - where did the "Bosher" name come from and when did it start?

 

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11 minutes ago, TonyJ said:

Dr Rosalind Beck is a doctor of Criminology and a Conservative Party member in South Wales.

https://www.conservativehome.com/localgovernment/2017/09/rosalind-beck-is-more-social-housing-really-the-way-forward.html

 

' I do wonder why you are running an article promoting a policy designed to create Labour voters. Unless you seriously believe that council tenants vote Labour and private tenants vote Conservative.

It not really like you have the votes to lose. '

Remind me. Dogs ar5e. Left or right?

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' Author makes a number of facetious points. Chief amongst them is the idea that a change in government strategy to find new social housing with housing benefit implies suddenly ceasing to pay housing benefit to tenants in private rented accommodation, leaving them homeless. Why this would be the tactic chosen, she doesn't outline (chiefly because it plainly wouldn't be).

Rentiers seeking government-guaranteed rent is certainly not a new phenomenon. '

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3 minutes ago, spyguy said:

' I do wonder why you are running an article promoting a policy designed to create Labour voters. Unless you seriously believe that council tenants vote Labour and private tenants vote Conservative.

It not really like you have the votes to lose. '

Remind me. Dogs ar5e. Left or right?

Good spot.

 

"Dog's ar5e wins owners face contest"

Edited by thewig
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36 minutes ago, InlikeFlynn said:

I'm always slightly suspicious of those that use their PhD title outside their original field.   Smacks of self-agrandisement. I wonder if her PhD is real.

Her PhD involves a lot of maths, so she's a lot brighter than the genpop.

Mainly dealing with numbers between 2 and 6 inches.

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On 24/01/2017 at 1:18 AM, Neverwhere said:

There is no way that they could get through the process of actually selling the property without realising that they were liable.

Failure to pay would be tax evasion, which is a crime.

People who might like to avoid tax often baulk at criminality, and also - as you indicate - there is ample scope for HMRC to trace such transactions.

AFAIK there is still no obligation for either side to use a solicitor.

I bought my first UK house without a solicitor although the BS had one which was a good reassurance that someone checked my work. The seller was a solicitor who also did not employ any of her colleagues.

It was before the internet or PCs EXISTED so I used a self help book as instructions. It would in that respect be more tricky now since there's so much wrong info and so many scare stories on the interweb. It was a very useful learning process in any case.

AFAIK the UK system has not changed to require use of anyone legally qualified.

In most other european countries [and also S. American ones], a notary acts for both sides to ensure legal validity of the transaction.

Of course that INCLUDES tax payments.

Many things in the UK are not the envy of the world.  We could usefully copy some of their systems IMO.

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20 hours ago, mrtickle said:

Excellent. Out of interest I've been meaning to ask for a while - where did the "Bosher" name come from and when did it start?

https://www.urbandictionary.com/define.php?term=Bosher

Quote
Top definition
 
The solo boshman is known as a bosher, boshing by ones self is a tru-bosher trait.

Being a bosher requires you to be highly skilled in boshing since it can lead to extreme boshyness.

Without bosh a bosher is lost.
You bloody, bloody bosher
by Uncle bosh January 24, 2009

There are some other definitions after this one, but of course these are irrelevant to the current thread.

Edited by Dyson Fury
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  • 1 month later...

UKAR using margin call clauses? Could just be arrears on some of the mortgages and a right to consolidate being applied to force the repossession of the whole lot.

Quote

I need help in taking on the UKAR Bully Boys!

I am a Property Landlord, based in North West England and I have 36 mortgages, which were originally taken out with Mortgage Express and GMAC and need recommendations of any Solicitors with specific experience in dealing with UKAR’s bullying tactics.

I was forced to resign my Mortgage Deed, the main impact being repayment of all 36 mortgages, 13 years earlier than the original date.

This I am unable to do as property prices have not bounced back since the 2008 financial crisis.

I have grounds to challenge this and it is imperative that I find the right solicitor.

Any recommendations will be welcomed and appreciated.

PovertyLater link

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