Accidental landlord and new tax rules

westernpromise

noddynoo wrote: »

If you let a property out that you own but don;t live in you are a landlord and subject to the new rules wrt tax and income thresholds etc

If you sublet a property that you don't own you're also a landlord.

westernpromise

Crashy_Time wrote: »

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

No, the best selling window was back in 1996, Crashy. When you sold.

AdrianC

westernpromise wrote: »

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.

Care to show your working on that?

Oh, and let's not forget that buying another property and NOT selling the original will hike the SDLT payable markedly. Always assuming you aren't serially accident-prone, of course.

Rosemary7391

westernpromise wrote: »

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.

£100k!? Really!? My flat didn't cost that much to start with!

I've deliberately not got a new fix on my mortgage as I expect to move in the next 18 months and don't wish to be a LL.

Bob_Bank_Spanker_2

AdrianC wrote: »

Care to show your working on that?

Oh, and let's not forget that buying another property and NOT selling the original will hike the SDLT payable markedly. Always assuming you aren't serially accident-prone, of course.

I think it's a humblebrag that his house is worth about £1.5m

AdrianC

Bob_Bank_Spanker wrote: »

I think it's a humblebrag that his house is worth about £1.5m

So do I, but let's give him the benefit of the doubt.

LisaV

Wow.

I came on here looking for some impartial advice; not looking for sympathy, and not looking for judgment of my circumstances either.

I come back from work to find that.... there is only one comment, I think, with useful, impartial, detailed advice (thank you *booksurr* much appreciated.) Most of the rest of you seem vary between trying to out-!!!!!! one another, and generally hurling pedantry, abuse and judgement in my direction.

Clearly no thanks to you lot!! suggest you could do something more constructive with your time? You're being no help on here that I can see.

LisaV

*Westernpromise* thanks for your comment 41 above, too. that's also appreciated.

westernpromise

Rosemary7391 wrote: »

£100k!? Really!? My flat didn't cost that much to start with!

I've deliberately not got a new fix on my mortgage as I expect to move in the next 18 months and don't wish to be a LL.

Selling and buying (eg) a £1.5 million house would blow £100k just on stamp duty, in return for which you get

ABSOLUTELY NOTHING

so a total, total squandering of money. You'd have to be going it a bit to lose £100k letting it out, renting, then moving back in.

A very common situation in London and the south-east.

AdrianC

westernpromise wrote: »

Selling and buying (eg) a £1.5 million house would blow £100k just on stamp duty, in return for which you get

ABSOLUTELY NOTHING

Apart from being able to live in a secure and educated civilised society, with a welfare safety net and comprehensive health cover...