Rental Property Wales - New Legislation

chrisrsmith

I own a property in Wales that has I have self managed (as a landlord) using  AST process.

I am now aware that the legislation has now changed or changing in Wales and the AST contract will be replaced - the one I have with the tenant (of 5 years) is now expired anyway.

I've also read that the introduction of new legislation has been delayed until December 2022 - so can I simply renew the AST?

If I have to provide the new type of contract (I've read so much to be honest I'm totally confused ). Can anybody provide me with a simple explanation and ideally a link or a copy of the latest contract, or whatever it's called now, that I can simply send to my tenant?

Any help very very much appreciated.....

user1977

As you've said, nothing changes until December. The status quo continues in the meantime, so if you're renewing an AST you follow the current procedure.

FAQ here: https://gov.wales/renting-homes-frequently-asked-questions-landlords

Brilley

..yes the new legislation is very confusing. I discussed it with the estate agent that used to manage the property before we went self managed, and even they were confussed. I was going to ask them for a cost to update the original contract, (which they did). They advised to not do anything at the moment as they were getting a lot of feedback from people asking more questions.

Another option may just be to use the "sample" contract they have posted on the website as at least you know you are covered.

I was expecting to see a simple "bullit point" list of the changes that you could compare to your own contract and then make changes accordingly, but this seems to be too simple for them.

On a separate issue are you aware of the punitive extra "land tax" you will have to pay if you decide to move house and stay in Wales while owning another propoerty?  If we move and stay in Wales we will have no option but to ask the tenant to leave before we move as this wil cost us an additional £20k...

grumiofoundation

On a separate issue are you aware of the punitive extra "land tax" you will have to pay if you decide to move house and stay in Wales while owning another propoerty?  If we move and stay in Wales we will have no option but to ask the tenant to leave before we move as this wil cost us an additional £20k...

This would not apply if replacing a main residence though (buying and selling), only if buying an additional property though? 

If this is not applicable to you, i.e. you own a BTL but do not own the place you live in the punitive tax would apply if you move to england/scotland/NI as well.

chrisrsmith

grumiofoundation said:

On a separate issue are you aware of the punitive extra "land tax" you will have to pay if you decide to move house and stay in Wales while owning another propoerty?  If we move and stay in Wales we will have no option but to ask the tenant to leave before we move as this wil cost us an additional £20k...

This would not apply if replacing a main residence though (buying and selling), only if buying an additional property though? 

If this is not applicable to you, i.e. you own a BTL but do not own the place you live in the punitive tax would apply if you move to england/scotland/NI as well.

Ouch - so I own the property in Carmarthen which I rent out (done so for 6 years). Bought it whenever I lived in Wales but now moved to England.
So therefore I will have to pay this £20K??
The house is only worth c. £100K

Briefly reading some articles (good old google), it implies that the new tax being proposed is for Holiday Lets...????

What a mess..

I think I should sell the rental in Carmarthen now that I've moved to England. Shame as the tenant has been there for 5 or 6 years now, never missed a payment and is not going to find an equivalent property at the rental price I charge. Haven't increased it for about  3 years - Covid and all that

Have I interpreted this correctly?

Thanks
Chris

housebuyer143

chrisrsmith said:

grumiofoundation said:

On a separate issue are you aware of the punitive extra "land tax" you will have to pay if you decide to move house and stay in Wales while owning another propoerty?  If we move and stay in Wales we will have no option but to ask the tenant to leave before we move as this wil cost us an additional £20k...

This would not apply if replacing a main residence though (buying and selling), only if buying an additional property though? 

If this is not applicable to you, i.e. you own a BTL but do not own the place you live in the punitive tax would apply if you move to england/scotland/NI as well.

Ouch - so I own the property in Carmarthen which I rent out (done so for 6 years). Bought it whenever I lived in Wales but now moved to England.
So therefore I will have to pay this £20K??
The house is only worth c. £100K

Briefly reading some articles (good old google), it implies that the new tax being proposed is for Holiday Lets...????

What a mess..

I think I should sell the rental in Carmarthen now that I've moved to England. Shame as the tenant has been there for 5 or 6 years now, never missed a payment and is not going to find an equivalent property at the rental price I charge. Haven't increased it for about  3 years - Covid and all that

Have I interpreted this correctly?

Thanks
Chris

I don't think so. Wales and England have similar stamp duty/land transaction rules. 
You have more than one house and you have to pay the additional stamp duty when you buy another, unless you sell your main residence and buy your new one at the same time. 

If you don't sell your main residence, then you have to pay the additional tax but can then claim it back if you sell your previous main residence within 3 years. This is exactly the same as England and doesn't change if your new house is in England instead of Wales or vis versa. 

The new holiday tax is for properties that are exclusively holiday homes or second property that people leave empty. They will be hit with 300% council tax payments. 

Your rental shouldn't warrant any extra tax as you already own it and it's let on an AST. 

housebuyer143

chrisrsmith said:

I own a property in Wales that has I have self managed (as a landlord) using  AST process.

I am now aware that the legislation has now changed or changing in Wales and the AST contract will be replaced - the one I have with the tenant (of 5 years) is now expired anyway.

I've also read that the introduction of new legislation has been delayed until December 2022 - so can I simply renew the AST?

If I have to provide the new type of contract (I've read so much to be honest I'm totally confused ). Can anybody provide me with a simple explanation and ideally a link or a copy of the latest contract, or whatever it's called now, that I can simply send to my tenant?

Any help very very much appreciated.....

Last time the Welsh government made changes it was only for new tenancies. Assume that's the case, carry on as normal and then if you renew the contract it will likely need to take on a new form past December.