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Selling My BTL
Comments
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Confused_landord wrote: »Hi Silver car,, i had heard somewere that if you leave it empty for a while,,you can also be exempt,,not sure for how long and i dont know even if its true....
If a property is empty (for upto a year I think) while you were refurbishing it prior to living in it as your home, you can claim the CGT exemption as if it was your home for that time. Doesn't apply to BTL. Also catches people out who refurb with the intention of moving in then change their plans.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Ignore all this !!!! talked about "margin calls" as long as you continue to service your mortgage no one is going to come asking for more.0
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its not a margin call but an "SVR TRAP"
if you come to the end of your fixed rate period you may well find that the SVR rate is far more than your fixed rate.
you have then two choices.
if you have equity you remortgage into a decent rate.
if you dont have equity you need to make up the difference which can be huge sums (read 10s of thousands of £££)
if you cant make up the difference and cant afford the SVR rate you will have no choice but to sell.0 -
SVR trap applies to owner occupier as well as BTL. It also only applies to those who took a short term low rate, anyone who planned ahead and has a longer deal (even deals for the whole term of the mortgage were and are available) don't have these issues.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Ignore all this !!!! talked about "margin calls" as long as you continue to service your mortgage no one is going to come asking for more.
you should definitly not ignor it
i know someone who is coming off a 4.6% fixed rate onto a 7% SVR. their mortgage will bw going from roughly £1k per month to £1.5k per month.
they will need to remortgage to a better deal, or sell if they cant remortgage to a better deal.
currently it is hard to get a "better deal" for less than 85% LTV. by the end of the year when they need to remortgage all the good deals might want 75% LTV. if house prices drop 10% by the end of the year. it means they will not be able to remortgage onto a better deal unless they have 35% LTV RIGHT NOW
a LOT of people are going to get caught in this "SVR Trap". be forced to pay a high SVR, stomp up a "margin call" or sell.
if prices continue falling 1-2% a month its going to be hell for a lot of peopple0 -
SVR trap applies to owner occupier as well as BTL. It also only applies to those who took a short term low rate, anyone who planned ahead and has a longer deal (even deals for the whole term of the mortgage were and are available) don't have these issues.
you are correct it applies to everyone. but i suspect the LTV of BTL will be worse than OO mortgages so they will get caught in this SVR trap more than an OO.
again you are right in that it will not affect those who took out long term mortgages. but there are MILLIONS who only took out mortgages of a few years.
just look at the 1.5million people who will need to remortgage this year.
even if 20% of those 1.5mil get onto the SVR trap it is going to be bad.
that is all assuming things pick up in a year.
if prices keep dropping 1-2% a month for the next 2-3 years expect at least 1 million people to get onto the "SVR trap"0 -
BobProperty wrote: »Nice try but we've seen this article before and the important part is:
"The revaluation is done when the borrower remortgages and, unlike the mainstream market, is required even if the landlord does not change lenders."
So :
Not when the initial discount period ends
Not when the mortgage goes on to the SVR
Not when the mortgage is reviewed
So unless the borrower remortgages IT WON'T HAPPEN.
We discussed that article on here when it came out, it's either sloppy journalism or carefully crafted to be scaremongering. No evidence was produced of margin calls being in BTL contracts
You can only have a margin call on an asset which is unregistered (eg cash) or can be held in a nominee name (eg many bonds and equities) as a contract with margin calls effectively means that the lender needs to be able to sell from under you if you can't make the call.
Can we stop all this rubbish about margin calls on BTL mortgages as they don't exist. I've called 3 BTL mortgage lenders to ask if they have them (incl. Bradford and Bingley and NRK (RIP)) and none of them did.
To be perfectly clear what we're talking about with margin calls - if the value of the asset falls then you have to come up with more cash (or a near equivalent) to maintain the value of your deposit. It is usually calculated daily (or at least has been when I've calculated it or monitored it as I do now for part of my job). A margin call isn't coming up with a bigger deposit in 3 years time when you want to remortgage.
To the OP - get professional guidance. You're running a business and you could do with proper advice. It'll cost you a few hundred and could save you £10ks. Employing an accountant is my second best investment after a wedding ring.0 -
Why? There may be some fiddled 100% BTLs but there were plenty of OO 100% mortgages and some 125% ones.you are correct it applies to everyone. but i suspect the LTV of BTL will be worse than OO mortgages so they will get caught in this SVR trap more than an OO.
If "20% of those 1.5mil" are economic illiterates who could only just manage their discounted mortgage and hadn't allowed for either interest rate changes or their mortgage going onto the lender's SVR, then the sooner they get repossessed the better for everyone.again you are right in that it will not affect those who took out long term mortgages. but there are MILLIONS who only took out mortgages of a few years.
just look at the 1.5million people who will need to remortgage this year.
even if 20% of those 1.5mil get onto the SVR trap it is going to be bad.
that is all assuming things pick up in a year.
if prices keep dropping 1-2% a month for the next 2-3 years expect at least 1 million people to get onto the "SVR trap"A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
I find this all a bit surreal...
OP had been running a btl "business" - several properties for a quite a few years, but...
dunno about the funding rules and regs
dunno about the taxation rules and regs
dunno about accountants and financial advisors stuff
Does tend to reinforce my opinions of this particular "business" sector - but how on earth does it all work? I remember having to do the business plans, offer several limbs and the first-born to get a business loan - seems that in the last decade you only have to mention bricks 2 or 3 times in your pitch (maybe include a few risque piccies of a naked brick) and umpty-gazzilions are guaranteed.
Not surprisingly I don't find the current state of poundland a great surpirse...0 -
Quote:
Originally Posted by Confused landord
I am in no rush to sell my BTL.its an excellent rental property, i bought it years ago (9yrs ago).. and it has lots of equity....Also i did say i was considering selling next year when maybe mortgages are easier to get when there are mortgages to get, that is, if the climate has changed then.Its one of a few BTL that i have,, i just wandered maybe i shud sell one and release some good money,,by the way i am a girlie,,not a laddo,,,,i was hoping on some pointers concerning the CGTSquat now
What on earth makes you think mortgages will be easier to get?
If prices are still falling, mortgage will be nearly impossible to get.
If you plan to sell, you need to sell now, and at a discount.
Hmmm., we recently sold a BTL ! the purchaser had no problem getting a mortgage! I reckon you know jack *** about mortgages.
Do you know anything about cars? my wife bought a mercedes clk with all that lolly we made, sometimes the roof wont come down, there's a shelf in the boot which you've got to slide back, ANY IDEAS?0
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