David Hamilton

Registered with Property118.com
Friday 4th March 2016

Latest Comments

Total Number of Property118 Comments: 4

David Hamilton

13:53 PM, 6th June 2016, About 5 years ago

Investor Update for Property118 Portal Limited

The action group sounds good.
From an investment point of view a £6 million valuation for the company at this stage in its development sounds extremely optimistic to me.... Read More

David Hamilton

11:17 AM, 9th April 2016, About 6 years ago

New Tax Strategy For Accidental Landlords

My understanding is that first purchase by a company is liable to the 3% SDLT charge

"2.20 The first purchase of a residential property by a company or collective investment vehicle

As made clear in this consultation, where an individual purchases their first residential property the higher rates will not apply. If the government mirrored this treatment for purchases made by companies and collective investment vehicles this would create a potential tax avoidance opportunity.

In particular, an individual could purchase an additional property via a company to avoid the higher rates of SDLT.

To guard against this avoidance risk the government proposes that the first purchase of a residential property by a company or collective investment vehicle is subject to the higher rates of SDLT (subject to the final decision on the treatment of significant investors as discussed in section 2.19). "

https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties... Read More

David Hamilton

9:12 AM, 1st April 2016, About 6 years ago

Bank of England Buy to Let affordability rules update

It could be difficult to make deals meet the new affordability criteria with net rental income. The FT have reported the new rental income as:

"This should be at a minimum of 125 per cent, the PRA says, and the calculation should take into account all costs of buy-to-let, including estimated voids, council tax, repairs, letting-agents fees and utility costs." http://www.ft.com/cms/s/0/a8fce3ce-f755-11e5-96db-fc683b5e52db.html

Deducting these costs and any addition tax due to Clause 24 will have an impact for me. Out of curiousity I put a few figures into Accord's affordability calculator. http://www.accordmortgages.com/btl/rental-calculator/index.html

A property with £1,000pcm gross rent would support at mortgage of about £175,000 at 5.5% 125 ICR

Deducing 10% agent fees, 10% maintenance, 20% extra tax due to Clause 24 only supports a mortgage of £111,000 at 5.5% 125 ICR

For those landlords who are suffering from excessive maintance charges on leasehold properties the position could be even worse. Finding properties worth around £150,000 that rent for £1,000pcm isn't easy in the South East.

They have stated that the rules won't affect remortgages, however that wasn't how things panned out in practice for owner occupier mortgages, hopefully it won't pan out that way for us!... Read More

David Hamilton

7:14 AM, 4th March 2016, About 6 years ago

Summer Budget 2015 - Landlords Reactions

One aspect of the changes that has been under reported is the impact on child benefit.
In addition to all but wiping out my rental profit, from 2020 being unable to count mortgage interest as an expense I will lose all child benefit for my 3 children as my income + mortgage interest will make my 'paper' income over the the child benefit threshold.
John in example one on the spreadsheet would also be affected in the same way if he has children.
Could the spreadsheet be updated to reflect this lose too?

Any others on the forum affected in this way? Another issue to contact my MP about.... Read More