Landord Wanted Rent Increase - I Refused Rent Stays The Same

[dface]

My present landlady is a retired tax inspector. She is a tax advisor now who owned her own business.

She says the revenue no longer apply the rule that if you live in the property for some length of time you are automatically excluded for capital gains. She is aware that the revenue are looking at people who have moved a few times in a short space of time and made money. If you can come up with a good excuse for moving ie family, job move etc then they may letyou off.

They are looking at whether the "spirit" of the regulation has been followed. If you are "turning" houses then they may well catch you, and you can argue as much as you like, when they put that bill on you, they will insist you pay.

I will say it again, just because you have lived in a property doesnt automatically mean you dont pay the gains...

I find the above really hard to believe.

I only moved to go someplace bigger or to a better area. Profit never interested me i was just fortunate that propertys i bought had risen in price.

For you to say you hve to come up with an excuse just baffels me. So potentially everyone who sells and moves could be forced to pay no no no.

They have a law for a reason, somepeople maybe misuse the law to there benefit but just like loopholes they are there to be exploited.

[euan2020]

dface

don't get carried away with yourself saying "We" Investors

You said you have 2 Properties - I hardly call that a portfolio.

Theres not a bottomless pit of money from "investors" and they wont be so keen to throw money if there is a signficant value reduction

I cant be bothered looking for the quote but i read previously that if you went back 15/20 years there was only a limited amount of BTL.

Now we are discussing in excess of million - this is not folk with available money but folk who have taken out BTL mortgages - now if the banks dont lend they cant spend.

Example - 1 of my mates has interest in 4 let properties but if he sold them all up he would less disposable money than i have (ok I'm lieing - would been true

before crash in shares 2 months ago)

ok - i could be bothered -

http://www.cml.org.uk/cml/statistics

BTL mortgages O/S 2007 are 50 times the amount that they were in 1998 - so all these "investors" are not spending from their own pocket. Their future investments will be dictated by their ability to borrow.

Table MM6

Buy to let market summary

Return to index

Period 1 2 3 4 5 6 7 7 8 9

Mortgages Mortgages Mortgages Gross Gross Gross Mortgages Maximum Minimum

outstanding outstanding outstanding advances advances advances 3+ months LTV rental

at end of at end of at end of in period in period in period in arrears cover

period period period

% of total % of total % of all % of rental

number £m by value number £m by value mortgages % income

1998 28,700 2,000 0 0.70 75 130

1999 73,200 5,400 1 44,400 3,100 3 0.50 75 130

2000 120,300 9,100 2 48,400 3,900 3 0.47 78 130

2001 185,000 14,700 2 72,200 6,900 4 0.55 80 130

2002 275,500 24,200 4 130,000 12,200 6 0.40 80 130

2003 417,500 39,000 5 187,600 19,200 7 0.33 80 130

2004 576,700 56,900 6 225,900 22,700 8 0.54 80 130

2005 699,400 73,100 8 223,000 24,500 8 0.65 85 125

2006 835,900 93,200 9 324,900 37,700 11 0.58 85 125

2007 1,025,700 120,600 10 346,100 44,600 12 0.73 85 120

Source: CML Research

Note: 1. Lending figures are grossed up to ensure figures are compatible across periods.

2. CML has estimated lending data where a lender has not reported figures in a particular period.

3. Underwriting criteria represent the median average of the individual limits applied by lenders.

4. Results may be compared over time but care should be taken with pre-2000 figures.

5. Minor revisions have been made back to H1 2006.

CML Research

4/12/2008

But by your view he is an investor - nah - he's got less spare money than i have

Edited December 16, 2008 by euan2020

[euan2020]

CGT

Looks like could be subject to IR Perception

If you are now saying this is your main role in investing and have flipped 3 properties in 3 years you might struggle to justify these as being primary residence

Don't know - now doubt you will find out when complete tax returns for Rental Income etc.

http://www.direct.gov.uk/en/MoneyTaxAndBen...come/DG_4020890

Tax relief when selling your home Private residence relief is the name given to the tax relief designed to ensure that most people don't face a Capital Gains Tax bill when they sell their home.

Who qualifies for private residence relief

Generally, if you have lived in your home and it has been your only home all the time that you owned it, you will not have to pay Capital Gains Tax (CGT) on any money you make when you sell it because it will be covered by private residence relief.

However, you may not qualify for relief on the whole property if you:

have a garden or grounds that extend to more than 0.5 hectares (roughly the size of a football pitch)

have extensive outbuildings

have used any part of it exclusively for business purposes

bought it primarily in order to make an early sale at a profit

If you're selling your home and you own more than one property, or you've used part of the property for business purposes, such as using one room as an office, taking in lodgers or letting out all or part of the property for a while, you may be liable to pay CGT.

Whether or not you still qualify for some private residence relief will depend on your exact circumstances, so if in doubt, ask your HM Revenue & Customs (HMRC) Tax Office for advice.

Find your local Tax Office Opens new window More about CGT on selling property

When you no longer live in the property

Even if you no longer live in your property, you can still qualify for the full amount of private residence relief, provided that:

the property has been your main home from the time that you bought it

it has otherwise fully qualified for private residence relief (for example, you have not used part of the property exclusively for business purposes)

you sell it within three years of moving out or it no longer being your main home

[Chrysalis]

I think you've just been done.

This is common in LA these days...they go for a rise and you take a 'remain the same' deal but longer term.

If you didn't get 20% off MINIMUM, you've been done.

The LL/LL won in this case.

I'd go back, saying you want 30% off, due to the economic situation, then go to 15% after alot of debate, be polite, be nice.

wish it was that simple.

My sister's ex landlord asked my sister to pay more and she said no. Week later got eviction notice.

Same happened to my last 2 neighbours. So I wont be trying it with my landlord as I dont want to move.

[Ferienwohnung oder Apparte]

My landlord also wanted to increase the rent but I said he didn't stated in the Contract that there will be rent increase. So, he didn't insist on increasing the rent anymore.

[shell]

I agree with DEVELOPER.

Like him all my investments are running on trackers without a cut of point result!

Like he mentions with the rate cuts we COULD pass on teh benfits but me personally i dont cos like what he also mentions that when the rates rise i dont ask for a increase in rent do i.

With regards to "reter bob" your name says it all. I cant speak for "developer" but me personally, Can you plz keep lining the pockets of my Ozwald Boateng Bespoke £3500 suits please..... And continue to pay this 22yr old mortgages for him plz

With regards to the donkey who started this topic and people advising him or her to negociate a 20% drop in rent. Are you honestly smoking crack? or taking some form of perscripted drug. Like DEVELOPER i would be nice and say NO and secondly if your not happy when the contract runs out your free to leave.

The cheek of some of you people on this forum, its quite pathetic tbh. Helping out each other to get one over on your landlord just because he's wearing a well cut suit, rolex on his wrist and driving something unpractical in and around London at the tender age of 22. Just look at this way, we're providing a service you cant afford the deposit to buy a place we can, we give you a roof over your lil head and for that service we charge rent. Dont moan. Pay on time and everything will be alright!

LLs like you are desperate because of glut of properties on the market. Rents are going down. More and more properties at cheaper rents everywhere.

PROOF: http://news.bbc.co.uk/1/hi/business/7733245.stm

Interest rates WILL go up sooner or later. Then where will you be?

Hey! Don't hit me. I'm just asking

[euan2020]

LLs like you are desperate because of glut of properties on the market. Rents are going down. More and more properties at cheaper rents everywhere.

PROOF: http://news.bbc.co.uk/1/hi/business/7733245.stm

Interest rates WILL go up sooner or later. Then where will you be?

Hey! Don't hit me. I'm just asking

he's ran away since we mentioned Capital Gains Tax