Accidental landlord and new tax rules

Crashy_Time

Bob_Bank_Spanker wrote: »

Why does literally every thread you're involved in turn to your LL activity? I get it, you have a £5m portfolio and you're going to slowly liquidate over the next few years.

"Slowly" being the operative word as he missed the best selling window (Pre Brexit/Trump) IMO.

Rosemary7391

Does anyone else think we need a sticky to warn posters who might describe themselves as accidental landlords?

chucknorris

Crashy_Time wrote: »

"Slowly" being the operative word as he missed the best selling window (Pre Brexit/Trump) IMO.

I'm not going to comment (go into detail) on this thread (for reasons stated above), and also we are already discussing this on another thread.

Crashy_Time

Rosemary7391 wrote: »

Does anyone else think we need a sticky to warn posters who might describe themselves as accidental landlords?

Warn them about HMRC targeting them you mean?


http://www.qdosvantage.com/let-property-campaign/

Rosemary7391

Crashy_Time wrote: »

Warn them about HMRC targeting them you mean?


http://www.qdosvantage.com/let-property-campaign/

Nope, just that it won't get them any sympathy on here!

Crashy_Time

Rosemary7391 wrote: »

Nope, just that it won't get them any sympathy on here!

I do actually have some sympathy, why should someone be forced to sell because they want to work/study say in another area, but it was inevitable that the political and tax tides would turn eventually.

AdrianC

Crashy_Time wrote: »

I do actually have some sympathy, why should someone be forced to sell because they want to work/study say in another area

No "forcing". A simple and conscious choice...

Continue to live there.
Sell the property.
Become a landlord.

westernpromise

csgohan4 wrote: »

But the OP had the option to sell or be a LL, the OP chose the latter, so technically the OP is not accidental.

You have no idea whether the OP had that option. None at all.

AdrianC

westernpromise wrote: »

You have no idea whether the OP had that option. None at all.

In what possible world would they NOT have had the option to sell?

It might have cost them money. It might have realised an otherwise paper loss. But they COULD sell. EVERY property will sell, if the price is right.

westernpromise

booksurr wrote: »

Yet each is doing it solely because they think they can make more money by remaining invested in property.

Wrong.

If I had to move to a different part of the country, selling my house and buying another of equal value would cost me at least £100,000 in fees and stamp duty. Porting the mortgage might cost me another 6% of its outstanding balance on top as an ERP, if the lender did not consider the new house to be equal security. In practice I'd have to buy somewhere £100k cheaper to fund all the tax, so that is actually highly likely. In the best case I might fall below a LTV threshold and find the interest rate went up.

In such circumstances (and you have no idea how widespread they are), the owner simply cannot afford to sell unless s/he has £100k in cash lying about the place. And that is without including the transaction costs of buying back into the original area if that is where home is and if that is where the seller intends to return.

I am aware there is a body of opinion that thinks it should be illegal to let property, but there is no need to pay it any attention.