Selling My BTL

brit1234

Here is the Telegraph article stating about the margin call payments on the two biggest buy to let providers, representing 40% of the market.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/14/cnmortgage114.xml
:eek:_pale_

SquatNow

Confused_landord wrote: »

To Squat now,,,no i dont know if mortgages will be easier to get then, what i should have said was when the current climate improves,whenever that may be..in the mean time i will just keep renting it,,,,no problem for me,,,

Fair comment, but do note it may take some time for prices to return to current levels.

Roughly 36 years. (2 x 18 year land price cycles)

dopester

Confused_landord wrote: »

To Squat now,,,no i dont know if mortgages will be easier to get then, what i should have said was when the current climate improves,whenever that may be..in the mean time i will just keep renting it,,,,no problem for me,,,

KK... don't be concerned about recent press reports suggesting UK could have an avalanche of redundancies coming up... tenants can always pay even if they have no income.

Improves? A few months away or longer do you think?

Whilst I'm not religious whatsoever, the Book of Genesis tells us that seven bountiful years are followed by seven lean years. No fear though cause Gordon has changed all that by re-writing the rules of boom and bust. You can apply cycles to many things, including forest fires in US National Parks...mass forest fire, earth very fertile from the remains, growth ensues, trees become strong and healthy.. grow and grow, age and age, until vulnerable to fire again, and 250 to 300 years down the line the cycle repeats. Apply it to so many things.. fascinating.

And we have a lot of "dead vulnerable wood" in the UK mortgage system.

SquatNow

dopester wrote: »

KK... don't be concerned about recent press reports suggesting UK could have an avalanche of redundancies coming up... tenants can always pay even if they have no income.

Housing Benefit (which paid the full rent to the LL) now replaced by Local Housing Allowance which pays an ALLOWANCE to the TENNANT.

The HB/LHA change is going to tear through the private rentals market like a tornado.

Confused_landord

As of yet , no one has actually answered my original post,,,as i dont do DHSS rentals then the last post is neither applicable to me,,,and the same for the Margin Call Payments,,however thank you for your replies , the links you have put on this thread have been intresting reads and i thank you for that..

EdInvestor

brit1234 wrote: »

Here is the Telegraph article stating about the margin call payments on the two biggest buy to let providers, representing 40% of the market.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/14/cnmortgage114.xml
:eek:_pale_

There are no margin calls. This property will be revalued when the buyer remortgages, not before. Even then there is the choice of going onto the SVR


Re the Op's query on CGT, the rules have now changes so that CGT is levied at a flat rate of 18% after deduction an annual CGT allowance (9.6k). Taper relief and indexation have all been dropped. The old reliefs still apply to any BTL that was previously your PPR.

silvercar

CGT:

Look at the difference betweent the selling price and the purchase price, take off all sellling and buying costs and any costs that were for improvements (as opposed to repairs and maintenance). You are now left with the gain subject to CGT. From this figure you subtract your CGT allowance (currently £9,600), times 2 if the property is jointly owned.
You pay 18% tax on the remainder.

Ways to reduce CGT: put the property in joint names to get a second CGT allowance. Do this before sale, rather than at time of sale. Only do it with someone you can trust not to walk off with half the proceeds!

Better way is to (properly) move into the property before sale, you would then get a proportion of the CGT bill removed as the last 3 years of ownership are exempt from CGT. Similar rules apply if you lived in the property before it was let.

Post some figures if you want a rough calculation.

terryw

silvercar wrote: »

CGT:

Look at the difference betweent the selling price and the purchase price, take off all sellling and buying costs and any costs that were for improvements (as opposed to repairs and maintenance). You are now left with the gain subject to CGT. From this figure you subtract your CGT allowance (currently £9,600), times 2 if the property is jointly owned.
You pay 18% tax on the remainder.

Ways to reduce CGT: put the property in joint names to get a second CGT allowance. Do this before sale, rather than at time of sale. Only do it with someone you can trust not to walk off with half the proceeds!

Better way is to (properly) move into the property before sale, you would then get a proportion of the CGT bill removed as the last 3 years of ownership are exempt from CGT. Similar rules apply if you lived in the property before it was let.

Post some figures if you want a rough calculation.

Very good advice from Silvercar.

terryw

IveSeenTheLight

brit1234 wrote: »

Here is the Telegraph article stating about the margin call payments on the two biggest buy to let providers, representing 40% of the market.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/14/cnmortgage114.xml
:eek:_pale_

The revaluation is done when the borrower remortgages and, unlike the mainstream market, is required even if the landlord does not change lenders.

This is not a margin call, it says when / if you remortgage the bank is likely to want to ensure the mortgage maintains the LTV, well duh!!!!! of course any new mortgage will want the same terms as any other minimum LTV out there.

But if you are not re-mortgaging, there would not be a margin call.

Sheesh, some people need reading glasses I think

IveSeenTheLight

SquatNow wrote: »

Fair comment, but do note it may take some time for prices to return to current levels.

Roughly 36 years. (2 x 18 year land price cycles)

LOL :rotfl: , show any area where it has taken 36 years to return to the same level.
Here, use this link to show an area where it is cheaper now than it was 36 years ago (ok the link only goes back 20 years, but I don't think yu could even show that)