New landlord tax changes

OhSoStupid

leveller2911 wrote: »

How long have you had the 2 BTL mortages and how much are the shortfalls?.

The BTL mortgage market is not regulated in the same way as residential.

Why didn't you include the 2 BTL in your bankruptcy in 2011?. Surely as they didn't have any equity you wouldn't have made a loss in getting rid and including them in the BR?......Or were you counting on their value rising ?.

I'm not judging you on the BR but if there was no equity in them back in 2011 why on earth did you keep hold of them?.

They are in joint names and didn't want to involve my wife with my bankruptcy. By keeping them there was no impact on her.

We have had them about 10 years. Their reduced values are due to short leasehold on one (now hard to get mortgage on) and other complications on the other.

marksoton

OhSoStupid wrote: »

Yes the btl mortgages are a few years old. It was normal to take them out on an interest only basis. This was the only way the rent would cover the costs.

Then i reiterate, you need to seek professional advice.

Especially if you have no payment vehicle. ( And that would have been the case regardless of when you took the BTL's out)

OhSoStupid

marksoton wrote: »

Then i reiterate, you need to seek professional advice.

Especially if you have no payment vehicle. ( And that would have been the case regardless of when you took the BTL's out)

It was / is normal to have no repayment vehicle on a BTL other than the sale of the property at the end of the term. It is just our misfortune that we made mistakes in our choice of properties.

Unfortunately, no professional advice is going to change our situation regarding the properties. It is what it is.

OhSoStupid

I thank everyone for contributing but the topic has gone off on a tangent a little.

I wish you all a very merry Christmas.

Innys1

This thread has got to be a wind up.

After all, everyone knows landlords are blood sucking parasites who burn £50 notes to keep warm.

Anyway OP, the restriction on mortgage interest allowable is only the first of series of steps designed to make life (even more) uncomfortable for landlords. There are others - the first two of which are removal of the wear and tear allowance and the extra 3% stamp duty, the second of which is unlikely to affect you.

As for the mortgage interest relief, I think you will be unaffected as it only applies to Higher Rate tax payers.

brit1234

OhSoStupid wrote: »

It was / is normal to have no repayment vehicle on a BTL other than the sale of the property at the end of the term.

I would say it is unfortunately normal for landlords to have no repayment vehicle despite breaching mortgage conditions Buy to Let needs to be more tightly regulated and enforced.

There are even landlord groups such as property 118 encouraging landlords to ignore letters from lenders requesting verification of repayment vehicles. :mad:

Thrugelmir

OhSoStupid wrote: »

The BTLs (two) are both low value and achieve low rent.

That's a poor business decision. A risk you choose to take. Putting aside the tax changes. Sounds as interest rates normalising will hit you hard in any event. The property with only a 50 year lease remaining is rapidly going to diminish in value.

I would stop complaining and work out the cheapest form of exit from the situation you are in. Before it drags you totally under.