May 2018: Buy to let market in Tunbridge Wells & Tax implications:
Buy-to-let market in Tunbridge Wells
Overall rents are growing modestly, in line with inflation and wage growth, but tenant demand is strong as more young people join 'Generation Rent'. We have seen a number of Landlords opt to sell in the past few months either to get out of the BTL business or because they need the funds to invest in their own home. Whilst some of these have been sold with tenants in situ others have gone to owner occupiers so we are always looking for new landlords to keep up with demand. At the same time we are seeing existing Landlords expanding their portfolios and investors entering the market for the first time as a result of inheritance, pension funds or business sale. We have people with cash to invest who are still looking for the right property so if you are planning to sell please do give me a call on 01892 615406
Some Tax Implications for Buy to Let
Before April 2017, mortgage interest and other finance costs were generally deductible in full when calculating the taxable profit from a residential letting. This allowance began to be phased out on 6th April 2017 and in the current tax year only 50% of the relevant costs have been deductible in full, with the remaining 50% replaced with a 20% tax credit. Over the next two years the interest deductible will be restricted further so that from 6 April 2020, relief will ultimately only be available at the basic rate of tax. The impact can be significant and landlords may want to consider their options and if they can limit the impact the changes. Alternative ownership structures of re-oganising debt may be appropriate for example Finance Cost Restriction. Since 6 April 2015, non-UK residents have been subject to UK CGT on the disposal of UK residential property and the disposal has to be reported within30 days of completion If this all sounds a bit confusing then you may wish to seek advice from your accountant or contact Simon Tadman at SRT Tax Consulting who helped us with this
article - email@example.com/ 07834 368876
Making Tax Digital
Whilst those VAT registered entities with turnover above £85k will be getting ready for digital filing from April 2019 this will not apply to Landlords with a turnover below £85k until at least 2020 which is a welcome relief.
Many landlords are probably not aware that this has not always been the case but it is now possible to claim 45p per mile for all journeys related to managing your property
Legal Update: Minimum energy efficiency standards (MEES) and Gas Safety
From 1st April 2018 it became unlawful to grant a new tenancy agreement (including renewals) with an EPC rating below an 'E' From 1st April 2020 this will extend to all privately rented properties including those with existing tenants. If you are concerned about your property please do contact us for advice or to arrange for a MEES compliance review of your existing EPC. There is some good news on Landlords Gas Safety Certificates which can now be operated MOT style whereby when a certificate is produced up to 2 months ahead of the annual renewal date it will not expire until the anniversary of the renewal date (provide the last two have been done on time)
Feb 2018 Thanks, Sales, Landlord Tips and Getting Paid:
Many thanks!We know that you have a choice about who lets and manages your property and we appreciate you choosing Belvoir! in Tunbridge Wells.
Since I bought the business in August we have been busy streamlining our processes and updating our professional standards. We have moved to a new cloud-based system for managing and marketing our properties and we have started using an app for completing property inspections. All of this means we are more efficient and therefore can spend more time supporting our landlords.
The office is in the process of becoming accredited by the Association of Residential Letting Agents (ARLA) and the team are completing their training.
We have recently signed a lease for new premises opposite the train station and will let you know when we have a definite move date. The office will have a fresh new look so I hope you will pop and see us if you are in the area.
I would be delighted to speak to you about your plans for your property and to hear your feedback on how we are doing. I plan to run seminars about some of the issues that are concerning landlords so watch this space for details and please let me know what would be interesting to you.
We also do Sales!
The office has been undertaking sales since 2014 and we will be expanding that side of the business during 2018. In October we completed on a sale in just 17 days from offer to move-in as a result of a great team effort working alongisde Thomson Snell & Passmore in the town. Sadly I can't promise they will all be that quick despite our best efforts!
I would encourage you to click and read this really useful article covering whats on the horizon for residential landlords:
Landlord Tips from Belvoir
Concerned about getting paid?
Many of you have have taken up the Rent and Legal Cover that we are able to offer on Managed Properties. Whilst we undertake comprehensive referencing and hope you never have to use it, this product does give peace of mind knowing you will always get paid even if the tenants circumstances change and any costs of eviction will also be covered. We will be offering this on all new managed tenancies going forward.