buy to let Property

[Deleted User]

bite21uk wrote: »

hi ,thanks for message,,, my health issue is not care and mobility related so dla (i dont think counts),,

i have a depressive illness /panic anxiety which i have meds to help control for last 12 years , and at the same time hold down a part time job (5x (3hour) afternoons per week. and take home about £100 a week of which is taxed etc and also pay nic etc.

Hopefully someone will answer the bit about the properties,,, like i said in first post they make nothing and are worth nothing if sold.

You shouldnt be paying any tax on a £100 a week income,unless you have other taxable income or taxable benefits?

[Deleted User]

DKLS wrote: »

Cant comment about house and benefits.
But would recommend seeking treatment/help with the anxiety and depression.

12 years is a long time to be on meds, which I assume treats the symptoms only and not the underlying cause.
Might be worth asking your GP for a CBT referral, there is likely to be a lengthy waiting list, but there are free resources available to help you in the meantime, a great one is here

CBT is nothing more than legalised witchcraft

real1314

thekid308 wrote: »

According to the Jobs and Benefits mortgages on the rental properties are not considered just the value.

I don't understand waht you mean by "the Jobs and benefits", but in terms of dealing with a rental property (or properties), my understanding is that the first decision to make is:-

Is it a private capital concern OR a trading business concern.

For a private capital concern they should value the property(/ies) and take off any outstanding mortgage, and also take off 10% (?) off the value for sale costs.
So, 3 x £100k properties with £85k mortgages would be £300k - £30k (10% sale cost) - £255k mortgages = £15k net asset value. Incidentally they'd get a valuer to assess the value. However, I think the guidance is that 1 property would be considered a private asset, any more than that would be considered a business.

For a business concern, you'd have to provide accounts to show how the income/outgoings are assessed.

btw I'm no expert in this area. It might help if you could provide some clear detail of what you've got / what they've said and then people could give more specific advice.

dmg24

woodbine wrote: »

CBT is nothing more than legalised witchcraft

Can you elaborate on this a little please woodbine? My own experience of CBT is pretty negative, and I have just bought some books to see if they confirm or change my views. I'd be interested on why you feel this way? x

[Deleted User]

dmg24 wrote: »

Can you elaborate on this a little please woodbine? My own experience of CBT is pretty negative, and I have just bought some books to see if they confirm or change my views. I'd be interested on why you feel this way? x

Mrs woodbine has horrendous back problems,she has operations that have made it worse and pain clinics that havent helped,as a last throw of the dice they sent her for cbt,the clinic was 30 miles away,they did hardly anything for 5 visits then they stopped her appointments,they wrote to her gp saying that as she was unable/unwilling to travel 30 miles(a lie)they coudnt help her,when the truth was that the CBT was less than useless all they did in 5 one hour visits was tell her to think positive about the pain,which by the way is so severe she has morphine patches in ever increasing strength just to be able to get out of bed.

dmg24

woodbine wrote: »

Mrs woodbine has horrendous back problems,she has operations that have made it worse and pain clinics that havent helped,as a last throw of the dice they sent her for cbt,the clinic was 30 miles away,they did hardly anything for 5 visits then they stopped her appointments,they wrote to her gp saying that as she was unable/unwilling to travel 30 miles(a lie)they coudnt help her,when the truth was that the CBT was less than useless all they did in 5 one hour visits was tell her to think positive about the pain,which by the way is so severe she has morphine patches in ever increasing strength just to be able to get out of bed.

Yep, that is along the lines of the experience I had (except that I was paying £65 a session for their 'expertise'!). They don't really tell you anything that is not common sense, and gloss over the actual problem. Thank you x

thekid308

real1314 wrote: »

I don't understand waht you mean by "the Jobs and benefits", but in terms of dealing with a rental property (or properties), my understanding is that the first decision to make is:-

Is it a private capital concern OR a trading business concern.

For a private capital concern they should value the property(/ies) and take off any outstanding mortgage, and also take off 10% (?) off the value for sale costs.
So, 3 x £100k properties with £85k mortgages would be £300k - £30k (10% sale cost) - £255k mortgages = £15k net asset value. Incidentally they'd get a valuer to assess the value. However, I think the guidance is that 1 property would be considered a private asset, any more than that would be considered a business.

For a business concern, you'd have to provide accounts to show how the income/outgoings are assessed.

btw I'm no expert in this area. It might help if you could provide some clear detail of what you've got / what they've said and then people could give more specific advice.

Jobs and Benefits are the Social Secuirty Agency in Northern Ireland.

Basically I have my own home. I also have 3 Rental properties which are valued in arounf £100k with mortgages of the same, now in breakeven or negative equity.

I cannot claim Job seekers as I have savings of £16k or more. When I asked about this savings figure I was told they take into account the value of the properties and do not include the mortgage.

To me this is totally wrong but seemily it is the legislation. I don't know where to find out more.

Stroof

While interest rates are at their lowest it is odd that you have two investment properties which yield such low rental income that they don't pay their own mortgages and costs. Why would you have such a situation - and for how long ?

I have quite a large mortgage (£140k) on a flat which I rent, and for the first time in 6 years the rental income covers the mortgage and service charges etc. Previously it has cost me £2,000-5,000 a year. Until last year the only reason I was keeping the flat was capital growth, it was worth around £240k at the peak but may have dropped back to £200k now - actually I did try and sell it last year, but too late when the market had already gone cold. Now I am keeping it because the excess income is very welcome indeed.

If you have significant capital (value greater than mortgage) stored in these properties then that should be regarded as savings, and you are exceeding the £16k limit.

Oldernotwiser

thekid308 wrote: »

To me this is totally wrong but seemily it is the legislation. I don't know where to find out more.

What more are you hoping to find out?

thekid308

Stroof wrote: »

While interest rates are at their lowest it is odd that you have two investment properties which yield such low rental income that they don't pay their own mortgages and costs. Why would you have such a situation - and for how long ?

I have quite a large mortgage (£140k) on a flat which I rent, and for the first time in 6 years the rental income covers the mortgage and service charges etc. Previously it has cost me £2,000-5,000 a year. Until last year the only reason I was keeping the flat was capital growth, it was worth around £240k at the peak but may have dropped back to £200k now - actually I did try and sell it last year, but too late when the market had already gone cold. Now I am keeping it because the excess income is very welcome indeed.

If you have significant capital (value greater than mortgage) stored in these properties then that should be regarded as savings, and you are exceeding the £16k limit.

The point I'm trying to make - there is no capital in these properties. If I were to sell them I would not be able to cover the mortgages. The rental is covering the costs and expenses now the rates are lower.

I want to know why only the value is taken into account and not the value less mortgage?