Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Jim Taliadoros” at “01/03/2016 – 10:32“:

Not a tower block, a four story building with a large footprint.

Now I am not the flamboyant sort who wishes to advertise my presence, I would rather sit quietly unnoticed in the background. However I do have a management company called Fawlty Flats Ltd and it has occurred to me to rename the building.

Reply to the comment left by “S.E. Landlord” at “01/03/2016 – 08:50“:

Hi S E Landlord

The relief is not really being given for the purchase of shares, it is being given for the purchase of the BTL property. It does not matter what the money from the re-mortgage is spent on.

Through the extra borrowing that you describe, a landlord can recoup the money that he or she put towards the original purchase.

The interest on borrowings up to the amount of the purchase price is eligible for tax relief. The relief relates to the purchase of the BTL property, not to what the new money is spent on.

The landlord can also recoup the cost of capital expenditure by re-mortgaging, and get relief on the interest: https://www.property118.com/can-i-claim-tax-relief-on-remortgage-interest/61467/

Hi AL
I understand your comment that the landlord can recoup the money that was used for the original purchase and get tax relief on it – there was a time many years back when the tax relief would have been limited to the original mortgage and to maintain this on a remortgage there would have had to have been a split offer, one for the original loan and one for the additional funds being used for share purchase.
Add to this, if remortgaging now and putting the reason for the additional funds than that is to purchase shares.

I understand capital expenditure and tax relief on that is reasonable.

Reply to the comment left by “S.E. Landlord” at “01/03/2016 – 11:51“:

I will qualify my comment above as it is so long ago, I may be confusing restriction on tax relief and the way offers had to be issued with owner occupier mortgages rather than buy to let mortgages.

The betrayal of the Conservatives’ core supporters:

http://www.telegraph.co.uk/news/politics/georgeosborne/12175196/The-letter-from-a-Conservative-activist-that-proves-how-angry-Tories-are-with-Cameron.html

I’m one of the 96% of landlords who just have the one BTL property. It subsidises my pension and I pay a little tax on the income. I’m thinking that, as a result of clause 24, I will sell the property, spend all the cash and apply for pension tax credit so the govt can pay me.
How does that help the economy George!

Reply to the comment left by “Ros .” at “01/03/2016 – 13:17“:

This article is brilliant. It really sums up the sense of anger and betrayal felt by increasing numbers of Conservative voters.

Osborne doesn’t understand that developers need landlords to buy off-plan in order to get access to construction finance.

“By including new build property within the [stamp duty] increase, government has directly undermined its own priority to boost housing supply. Furthermore, the change has made higher-density schemes demonstrably more risky, increasing the burden of new supply on suburban and greenbelt locations” says Andrew Frost, Head of Residential at JLL: https://www.estateagenttoday.co.uk/breaking-news/2016/2/stamp-duty-surcharge-will-force-london-new-build-price-falls-says-agency

Clause 24 will have had the same effect.

So there will be fewer flats for FTB’s to buy than there would have been without Osborne’s two-pronged attack on individual landlords

Reply to the comment left by “Jim Taliadoros” at “01/03/2016 – 10:38“:

fair comment Jim and by the sounds of it you’re correct.

a further question on this issue….

I’d prefer to add my current main residence to the BTL portfolio, so was contemplating moving to a less profitable BTL, claiming that as the main residence and selling this less profitable one when buying the new main residence.

Is there any time period of residence required in this scenario, eg if moving into the BTL only weeks or days beforehand? I’m not looking to qualify for any capital gains relief so that’s not an issue.

thanks again for any advice you’re able to offer. Fantastic website. I’m part of a couple of the campaigns.

It’s obvious from all what he’s signed off on he hasn’t got a clue and what the massive fall out will be.

It will be carnage on so many levels if it ain’t broke don’t try and fix it