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About pauldavidthomas

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  1. I've got two with Parragon and I'm allowed 10% repayment per year. This can be drip fed in you have the spare cash... If you're not using the money, why not. Otherwise it sits earning no money in your account - as opposed to the XX% your paying on the mortgage. Just ensure these payments are seen as CAPITAL repayments... It's not be unheard of for the bank just to put them against the interest due on the debt as opposed to removing it from the lump sum outstanding.
  2. I've just done my accounts for my last 'cheap' project.... It wasn't. I suppose what I have learnt is, when doing projects note ALL expenditure and costs and look at them afterwards to see where you could have done better ! I'm currently having a bit of a work break, well, physical work, starting to look at property again, but without needing or doing any extensions.. Just a lick of paint and perhaps kitchen/bathroom...
  3. pauldavidthomas


    Deb, 1. By 'Third Party' I presume you mean, if my Ltd Company has a normal house >£500k and it is let under a normal AST to a normal family unit then no ATED tax is due ? 2. To ensure this tax is not due, I need to declare to HMRC that the above situation is true. I need to do this for each house I own in this situation ? 3. If the property the Ltd company owns <£500k I don't need to do anything ? Paul.
  4. Simon, to ask a really dumb question. Are you saying ( as the legislation is unclear to the general layman ) that if my Ltd company buys and then let's a normal property ( let's say a terraced house ) to a normal family ( let's say mum, dad and two kids - let's throw a dog in as well ) under and normal 6 months AST, then ATED is not due ? As such, would I be right to understand ATED is there to tax situations where companies are 'land banking' or 'property banking' as a way to encourage the development of sites rather than have them sitting dormant ?
  5. I'm very sorry for possibly asking a rather silly question.... A. What is a 'Third Party' ? As I have a BTL owned by my Ltd company. As far as I see the ATED legislation :- 1. If it has a market valuation of >£500 AND 2. It is let to a "third party" I am due to pay the tax. Does "third party" mean a normal, residential tenant living in a 'normal' home ? or does "third party" mean another company or legal entity ? As such, if I have a 'normal' house, let under a normal AST to a 'normal' tenant, I have to pay ATED tax because it has a value > £500k. B. The Purpose of the Tax. I am hoping the 'Third Party' is actually to other companies or legal entities and it's purpose is to put a tax on property or land banking. If it is not, then I see it as a stealth Tax on companies buying, refurbishing and letting property. I have to say, I do find the legislation ambiguous at best. I have printed the 'Annual Tax on Enveloped Dwelling (ATED) - changes from 2018' document and will read after I have completed some more pressing work ( annual tax returns ). But I would appreciate you comments.
  6. Well, from the picture of the kitchen, I can't see any issue. Equally, a flat roof should not be an issue. Well, unless it's totally buggered, but then that could just be a with hold of part funds until issue fixed. You need to see the details of the valuation report and question it. It could be something that might not be as obvious to the eye.
  7. Diego, To aid your education, I would not look at someone else's spreadsheet. I would spend the time and do your own, you will learn so much more.
  8. The only lease properties I have are 900 odd years. These are terrace properties owned in Hampshire. I didn't even blink on those. I am however currently buying the freeholds to save issues when it comes to doing extensions ( adding value ) as some companies buy the freehold and start charging fee's if you want to do 'things' to property. You don't say the area you are buying, but at such a low number if years ... London ?? Look at it another way, you'll be dead before it goes back to the freeholder. However, anything below 50 years I'd be concerned about it, mainly due to getting a mortgage on them.
  9. William... Ok, looking at this a different way... Do the first house. Move into it. Then the second, sell the first move into the second. Keep doing this. All the proceeds are CGT free, you will have a shit life for a while, but you will end up with the cash you wished you had now for your next project. I had a nice house in Winchester. Did this with 3 houses and now have a nice house else where, no mortgage and a healthy outlook ... Ok, also learned a lot of building skills to boot, quit my job and went in to construction, but it is good fun and I get to use lots of man tools ! That sounds wrong !
  10. I do my own tenancies and don't charge fee's, it's a part of doing business. If I need to, increase the rent. Some the fee's agents had charged are a joke and really they have brought this on themselves... IMHO !
  11. Cut down ALL of your living costs and special treats ( you know take aways, holidays ect ). Work more hours, even if for a second job to increase your income - perhaps in a letting agent or estate agent on weekends - no one likes working weekends... Could also offer a nice sourcing possibility, quite a few landlords letting houses are keen on selling...
  12. I'd go with Richard's option. The only potential downside is that most residential mortgages are repayment, which effects your cash flow. However, on the plus side, as you can rent the rooms under the government 'rent a room' scheme you can earn aprox £7,500 tax free - which is always nice. Also keeps your living costs low as all bills split 4 ways.
  13. Observe the area you want to buy in, get to understand YOURSELF what the market rate is for what you want. Only then can you go to sourcing agents and determine if they are giving you value for money. Don't blindly trust people.
  14. Letting agent / Estate Agent or Labouring for a builder or skilled work if you have the skills ( or can gain them ).
  15. If you mean extra 'Capital Value', it does not necessarily correspond to more cashflow. A house will typically have a ceiling rental value in an area. So, by adding a loft conversion £35k you're perhaps only going to get another £100 pcm from a 'family'. However, by changing it's use to a HMO, and as such adding two more rooms, then you will / should be able to have a considerable increase in income.