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Julia Urquhart

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  1. Unless you have a burning desire to be a LL - sell. The reasons I says this are: 1. With RRB coming in it is going t be much harder to get your property back if you want it. 2. EPC C is going to - would you need to make upgrades? 3. All income is taxable & if you are a higher rate tax payer there is no much left after all your bills. 4. It will be liable for CGT from the period you started t rent it out & the allowance is now only £6k 5. There is so much legislation & compliance this is not for the faint hearted. 6. You can probably get a pretty similar return by investing in fixed rate cash bonds - with no hassle. & The big one - watching a tenant abuse your former home is sole destroying. They will not look after it like you did & it will beak your heart.
  2. If it ain't broke don't fix it!
  3. I was just going say most insurance policies cover this!
  4. You can put all your mortgage credit against all your rent so Yes. There are extra costs to leaving it empty - Council tax, Insurance, Gas & Electric standing charge. Surely some income makes the figures stack up better? 60% of something is better than 0%!
  5. Close to where you live; modern well insulated with an EPC C or above; 1 or 2 bed so tenants don't stay 20 years; the best house in the nicest area you can afford.
  6. Hi again, Further replies: 1. Residential & subletting does not look a good option in your circumstances, so BTL is probably your best option. 2.Nottingham is bigger so more opportunities. I don't know Derby as well but they have students & a late hospital so there are plenty of opportunities there too. 6. I think you are the only one who can work out which is best for you. If you think you will add to your portfolio in the future then you may have to take the hit now, otherwise if you try to move a property into a LTD company you end up paying CHT & SDLT. As to what will be better in the future - who knows? Certainly you can very quickly become a 40% tax payer with BTLs! 7. I agree. But make sure you buy a decent property that will increase in value. Good luck
  7. Take it down - problem solved. Tenants & conservatories are never good mix in my book.
  8. With-holding rent is never a good idea as it makes it easier for your LL to evict you. I suggest you contact your local Council's housing dept & tell them.
  9. So...after 11 years she would not be able to claim anything for the carpets, they would be deemed to have no value. Removing the fridge freezer without her permission does actually entitle her to claim for its value. Did you leave the replacement there? If so, again she would not be able to claim anything as long as the replacement was of similar quality. If she hasn't protected your deposit in line with legal requirements you can take her to court & potentially claim 3 x your deposit. I would write politely to her pointing all this out & say that if she returns your deposit in full you will take no further action but if she doesn't you will take her to court for not protecting your deposit. If she returns your deposit but tries to claim you can dispute each point and if you have a valid defence no court will award her the money. Good luck
  10. I believe this is normal practice with a leasehold.
  11. As I see it you have 3 options: 1. You leave things as they are so that both tenants are liable for rent payments. You have every right to do this as they are still in the 12 month AST but your male tenant might not like it. On the other hand he has a responsibility to his kids so maybe he should be liable. 2. You get them both to surrender the tenancy & you sign a new one with the lady knowing that she may not be able to pay. Although she fails affordability it might be worth asking her how she intends to pay to see whether she is being realistic. She maybe entitled to some benefits now she s on her own with the kids. Its up to you whether you think she is worth the risk but bear in mind she may be difficult to evict. 3. You allow them both to surrender the tenancy & get them all to leave. Tricky choice.
  12. Some thoughts: 1. Why a BTL & not your own home? You will no longer be a first time buyer so SDLT becomes any issue when you buy your own home & you will not be eligible for Govt schemes, LISAs etc. If you take in lodgers you can receive £8k per year under the rent a room scheme without paying tax. 2. I am in Nottingham - depending on what you want to buy £60k is a decent budget to set up but a mortgage is going to take up a big slice of your income. Nottingham City & some other areas have SL in place so that needs to be factored in. Approx £900 for 5years. 3. A decent managing agent will charge you from about 10% + vat. Agents vary in how good they are! At the very least I would recommend going into your property between tenants to see what state it is in & do any maintenance necessary. Leaving this to an agent will lead to your property deteriorating. 4. There are good & bad areas in both cities; non standard construction also which can present problems. Price range in Nottingham from £100k to £250k for a 3 bed which will rent for £700-1000. By the nicest house you can afford in the best area. 5. Best mortgage rates generally available on 60% LTV as a minimum I would suggest 70% LTV. Mortgage companies are also being tighter on the rental multiples now so you need to consider that. 5. Many LLs now operating as businesses as the taxation was more favourable. The Govt tighten up a loop hole & the difference is less now. Who knows what will happen in the future? As a 'middle earner' if your income takes you into the higher rate you will not be able to offset all your mortgage costs as an individual which you would in a company. 6. Any gain you make will be subject to CGT & the allowance is being cut to £6k from next year then £3k so now much use at all. CGT rates on property are higher than on other assets - 18% & 28%. The only strategy for capital gains is to get a good deal to start with & buy in an up & coming area. 7. In short - 1 property will not generate much income in the early years & could well end up costing you; BTL is not a very tax efficient investment; hands off will cost you more; there is no such thing as passive income - property is hard work; forthcoming legislation is going to make property less attractive & EPC C will make many rentals unsettable. My adult son asked about this a year ago - I told him not to go into property but to invest in the stock market. The tax advantages are better, the risk less & no unelectable tenants / broken boilers / roofs falling off! Good luck!
  13. LVT is very expensive - I wouldn't do it. Personally I'd go for a good quality underlay & a cheapish carpet in the bedrooms & stairs, laminate in the lounge & a decent vinyl in the kitchen & bathroom. I would say £14.99 - 16.99 is about right for carpet, my sister likes berber I prefer twist! Well laid laminate will last 20 years although if you allow pets then they may scratch laminate & urine on any flooring is going to be very damaging. Cats will pull at carpets by closed doors & shred curtains & possibly wall paper near window cills. Pets are probably going to shorten the life of any flooring - particularly dogs - so ensure you are charging enough rent to cover replacement flooring at the end of the tenancy. You will be able to charge from the deposit for damage but if you allow pets in the first place you have to expect more wear & tear. Good luck!
  14. It depends what his contract says. Usually he can give 1 months notice on a rent date & then leave. Alternatively he can stay in the property and wait for the LL to evict him. The S21 notice I believe he has received does not end the tenancy but serves notice that the LL wants the property back. In order to evict him the LL will need to go to court and, assuming he has done everything correctly, he will be awarded possession but that will take many months. This is clearly not a comfortable position to be in but it means that your friend can take a bit longer to find a new property if he wants to or use this fact as leverage to get back some of the money he has spent on the property. For the future, it is really not worth spending your own money on a rental because you never know how long you will be able to stay. Better to try to get the LL to improve the property.
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