How to deal with losing buy-to-let tax relief

Property Division

If you are a buy-to-let landlord, recently you may have been feeling like someone has got it in for you. Firstly, the budget slashed tax relief, and then in Autumn, Chancellor of the Exchequer Philip Hammond added extra stamp duty. Perhaps you have now found your property portfolio looking not so spectacular. With these two surprise moves, the Government announced that buy-to-let properties would incur an extra 3% stamp duty and that from April 2017, buy-to-let mortgage interest payments would be slashed. Don’t fear, Manchester property accountants Alexander & Co are here with some ways you can deal with this. Tax relief on buy-to-let If you’re new to the buy-to-let scene, you may not fully appreciate the magnitude of what this is. Until now, people who buy- to- let have been able to claim tax relief on the interest payments from their mortgage at their marginal rate of tax. This meant that a basic taxpayer would get a 20% tax relief. Those at higher rate would receive a 40% relief, while top rate taxpayers could claim 45% tax relief. What’s changing? When the changes begin to roll in, tax relief will just be 20%, across all rates. While this news is a relief for landlords on basic rate tax, high rate and top rate taxpayers are likely to be troubled by this news, which will see them losing more in mortgage interest payments The impact of this Estimated figures published by The Nationwide Building Society portray how a typical landlord’s profits will be affected. They looked at a landlord with property worth £200,000, and a £150,000 buy-to-let mortgage. With a monthly rent of £800, in the old system they would have a net profit of £2,200 a year. However, under this new system it would plunge to £950. Other estimates have been even […]

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How to become a property millionaire

This step-by-step guide to becoming a property millionaire is hardly risk-free, but it incorporates practical tips from the experts… 1. Initially look to invest in flats rather than houses Most observers agree that investors who put money into flats tend to generate a good return. “Generally speaking, flats make better buy-to-let investments than houses, and if your budget will stretch to a two-bedroom, two-bathroom flat, as the more flexible your buy-to-let property is, the better. 2. Research and patience It’s vital to assess all the pros and cons of an investment and should speak with local letting agents before diving in to investing, as you could put yourself in a position where you are forced to sell. Looking at information that could affect the investment of the property such as; knowing about the local schools, types of shops in the area, transport, tenants and nearby towns. 3. Have a diverse property portfolio As with stocks and shares, a diverse property portfolio is the best way to invest as it is always better to have more than one property to fall back on. 4. Always look for ways to add value “One of the best ways to make money out of a property is to add value to it, for instance, covert a maisonette with a loft conversion or convert a garage into another room. According to a recent Zoopla survey this can add 20 per cent to the value of a property. 5. Be tax-efficient There are many ways to keep your tax bill down, so that you are still able to achieve maximum capital growth, without overpaying on taxes. For example, if you are married, ensure any rental income from your property portfolio is divided between you and your spouse in the most tax-efficient way, as well as maximising […]

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4 key differences between a good removal company and a bad one

Differences between a good removal company and a bad

Moving house is a hassle. So much so that the average Brit moves only 8 times in their life. Because this is something we don’t do very often, many of us don’t know what to look for in a good removal company . But the right mover can make your move faster and much less stressful. Here are 4 quick ways to tell between a good and a bad removal company. 1. No hidden fees Some removal companies charge by the hour, but most will quote you a flat fee. Any good mover will be happy to give you a breakdown of their costs if you ask. Many will have a terms and conditions document. This should set out all potential charges. For example, are there any cancellation fees if you have to change your moving date? Will they charge a waiting fee if you can’t get your keys at the time you thought you would? Are there any extra costs for stairs? For moving expensive items? For making more than one trip? A bad company will be unclear about all of this, while a good one will be more open. 2. Lots of happy customers This seems like an obvious point, yet it’s one that many people forget about. Yes, check the company’s website for online reviews and testimonials, and Google them to see if you can find out anything more. But it’s also worth getting the contact details of a couple of recent happy customers so you can call them and ask what the company was like. It might sound like a hassle, but the more willing a company is to give you these details, the better it’s likely to be. 3. They ask the right questions Your removal company needs to know several things in order to prepare for the […]

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Ways to Choose the Right Steel Gate Supplier for Your House

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Steel is prevalent in almost in every person’s lives. It is practically used to manufacture steel gates and steel grills of houses, building construction and many more applications. Almost all landscaping professionals believe that sliding steel gates is the current trend because it is the safest option that can be installed in any house or commercial area. Steel gates are strong and provide better protection from trespassers compared to the gates made up of other materials. Stainless steel gates are very durable and can last for at least 20 years. If you are looking for a gate that does not rust, a stainless steel gate is the best option. The only drawback of these gates is that the number of available designs and colors are minimal. Typically, aluminum steel gates are very expensive. However, spending more initially on a gate can save you money in the long-term because most of these gates last a lifetime and need not be replaced. It is very important to choose the right kind of steel gate supplier who can install sliding steel gates for your house. A typically good supplier will ensure that your needs are met appropriately by supplying the right steel gate that can protect your house. We have listed few tips below that can help you in selecting the right kind of steel gate supplier. Look out for recommendations – A best way to start looking for a steel gate supplier is to talk to your acquaintances and friends who have experience talking to and doing business with such suppliers. Hiring people whom you are acquainted to helps in any kind of business deal. Hence, it is not a surprise to see the same practice being recommended for such suppliers too. Sometimes the suppliers might give you discounts because of the recommendation. Check the Internet – With the evolution […]

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Easy ways to declutter your home before you put it on the market

While you’ll have gone to a lot of effort to turn your house into a home, decluttering your possessions and tidying up can help you sell your house as fast as possible when you put it on the market. Clearing the superfluous out of your home will not only make it look bigger, but also help potential buyers imagine how they’d put their own stamp on it. Decluttering each of your rooms will also give you a head start on the packing and, if you have any items to sell, they can even earn you a little bit of money to put into your new house fund. The benefits of decluttering your home before you put it on the market are clear, but it can seem like an overwhelming task if you don’t know where to start. To help you clear the clutter and sell your home as fast as possible, follow these top tips. The rules of decluttering When it comes to decluttering your home, you’ll have the most success if you stick to a few simple principles. The most important decluttering rule to stick to is that if you haven’t used an item in the last six months and can’t see yourself using it in the next, it should be thrown away or donated. Be strict with yourself when you’re doing this, as the more clutter you can get rid of, the easier it will be to keep your home tidy while it’s on the market. Given that research by RightMove has revealed that UK houses are on the market for an average of 65 days, that will save you a lot of housework. You should also tackle your home bit-by-bit rather than all at once. The latter method is a sure-fire way to get overwhelmed and give up before you’ve […]

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Property Investments Are Made Easier with Cutting-Edge Software

As an investor, getting on the property ladder is a dream come true for many people. But with growing numbers of property in your portfolio, how do you manage them properly? Property portfolio software has the answer. Starting out in the property business is not as difficult and off-putting as it might seem. In the UK, despite plenty of uncertainty, we’re blessed with a vibrant and thriving property sector . It means that if you can come up with the cash to get started and manage your property efficiently with property portfolio software, you potentially stand to enjoy substantial returns. All it takes is getting your hands on your first property, at the right price, to get the investment ball rolling. Tales are everywhere of people tentatively making their first property purchase – typically a small flat in need of refurbishment – and building up from there. It’s not unusual for some investors to quickly grow their property portfolio to encompass dozens of houses and flats and build up a multimillion-pound empire. But all that investing and growth comes at a cost. While it’s tempting to keep snapping up more properties, the administrative burden will keep growing, too. There may be multiple mortgages to keep on top of, tenants to look after and chasing up late payments. The burden of work can seem endless and draining — but help is at hand in the shape of a dynamic computer program. The Hard Work of Property Investment Indeed, the administrative weight of being a landlord or property investor in the UK is getting heavier. From September 2017, those who have four or more mortgages on buy-to-let properties will be obliged to provide details of all their property-related income streams, as well as existing mortgages, if they want to make a new purchase or refinance a current one. That’s in addition to all the usual tasks a […]

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Increase the Value of Your Home Using Storage

If the first thing that springs to mind when you consider ways of increasing the value of your home is expensive renovation or extension projects, think again. Logically, most homes have a cap on their value. This depends on the location, size, type, and general condition. There are limits to how much you can increase value, although maintaining a high standard of repair and fittings will always help keep a property at the top of the ladder. There are other ways, though, that make a home more attractive to buyers and for which they’re willing to pay top prices. These revolve around how the interior is presented and the kind of lifestyle promises the house makes. Underpinning this concept is the humble notion of storage. Granted, it doesn’t sound as exciting as a new conservatory or kitchen extension. But the difference that clever storage can make can be just as dramatic. Self Storage Secrets Revealed Cluttered rooms create closed in, claustrophobic spaces. The problem we all face is what to do with all the possessions we have that we couldn’t imagine being without. One of the best kept secrets to an easily managed, clean, tidy home is self storage facilities. Long thought to be just for people with vast storage needs or those looking for somewhere temporary to stow belongings during a house move, self storage is increasingly being used as a natural extension to everyday home storage . Making it work revolves around thinking seasonally, only keeping at home those things currently in use. Seasonally we change many of life’s aspects, such as the equipment we use in the garden, the clothes we wear, the games we play, and the leisure activities we pursue. Most of those include equipment we only use for a few months during the year, and the […]

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Woodworm Treatment | The ins and outs that you need to know

little woodworm lies on tree

What do you think when you hear the term “woodworm”? Most people will associate the term with an abundance of tiny holes on your door frames, similar to that of a dart board; and rightly so, this is indeed one of the most recognisable signs of an infestation. But, there’s much more to woodworm than little dark holes. Believe it or not, woodworm has a very interesting lifecycle and also leave behind them a number of clues to which can help us answer the all-important question, “is the infestation active or not?” How Does Woodworm Get Into Your Home? Infected timber. Whether it’s your grandparent’s furniture, Del Boy’s Queen Anne cabinet or simply firewood, if you bring infected timber into your home you’re at risk of an infestation. Once in your property, the beetle will look for cracks, crevices and existing exit holes for places it can lay its eggs. The eggs hatch downward into the timber and produce larvae. It is at this point that the damage is caused to the timber as the larvae eats its way up and down the timber. This larvae will eventually pupate after anywhere between two and five years before emerging as an adult beetle, ready to mate and start the process again. How Can I Spot Woodworm? There are a number of ways to spot woodworm, for example, the Deathwatch Beetle makes a ticking noise as it bangs its head against the wood, if you live in Camberley your home to the House Longhorn Beetle, an exclusive beetle indigenous to the Surrey area. See, told you woodworm was ‘un-boring’. The three common signs preservation specialists look out for are: Exit Holes These holes are typically between one and three millimetres in diameter. They are made by the woodworm as they eat their […]

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3 Garden Additions to Enhance Your Property

Let`s face it, here in the UK the British summertime is a short lived event and as such should be taken advantage of at every possible opportunity especially if you enjoy spending time outdoors. As such if you are looking to maximise the potential use of your garden (and ultimately enhance your outdoor lifestyle) here are some excellent options that your home may benefit from. Sun Awnings Perfect for any residential setting that requires shade from the summer sun and a bit of shelter from the rain a retractable awning is compact (they require no ground support and when not in use the fabric is rolled away inside a weatherproof housing), effective (enables large areas of shade to be achieved) and affordable (prices start from around £200) making it a great addition for any property. Ideally suited to being directly mounted to the wall of the house they are often located over patios to create a covered seating area. Available in a manual and electric operation, retractable sun awnings can be specified in hundreds of fabric designs which means you can match the finish to existing garden features or colour schemes to allow a harmonious or contrasting effect to be achieved. Gazebos If you home would benefit from an attractive shaded and sheltered area then a wooden garden gazebo is an excellent choice. Suitable for large or small spaces including patios and terraces a suitably designed structure will transform the outdoor space of your garden into a wonderful outdoor entertaining space, BBQ area, covered seating area or shaded children`s play space. Normally manufactured from long lasting pressure treated timber to ensure a prolonged lifespan you can find lots of wooden gazebo kits online in a huge array of modern and traditional designs however when comparing options always look closely at the specification of […]

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How to Find a New Tenant, Quickly

It’s the New Year and your end of 2016 review showed you your tenants were all paying on time and looking after their home – your property. But then, disaster, one of your long-term tenants has handed you their one month’s notice to vacate! While the reason for their decision to end the tenancy may be a wonderful one for them, all you know is that you need to get a new tenant signed up for your flat. Why? Because empty buy-to-let properties are expensive to run. “All the costs a tenant covers – mortgage and utilities – when they’re in contract, still need to be paid when a residential property is vacant,” said Marylebone estate agent, Kubie Gold Associates . “On top of that, you’re probably going to have to spruce the place up for viewings from prospective tenants, adding to your expenses.” The best thing to try and do in this situation is to get a new tenant in, fast. Of course, you want a tenant as reliable and easy to deal with as your previous one was. And luckily, demand for rental properties is meant to be sky high, right? But still, in order for your property investment to do its job, you need tenants in there, living in a nice home and covering all your costs. Be Organised This may sound like a simple job, but sometimes, it’s easy to rush headlong into a new situation without thinking things through and getting organised. But don’t worry, this organisation doesn’t have to be a big deal, here are the key details you need to organise in order to keep your BTL property empty for as short a period as possible. Confirm and then double check dates with your current tenant. A phone call, followed by an email will suffice here. […]

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