Colin McNulty

Registered with
Wednesday 14th August 2013

Latest Comments

Total Number of Property118 Comments: 158

Colin McNulty

14:20 PM, 8th February 2021, About 10 months ago

Lack of access to APAs forcing UC landlords to serve notice

4 months in to a new tenancy I still haven't received any UC for my tenant, despite logging 2 APA applications (formerly UC47) via the portal.

UC finally called me to arrange setting up the payment last week, apparently at the request of the tenant. But the guy I spoke to said neither of the 2 APA application had made it to the case, which was why he was calling me to ask for the information that he was missing.

Anyway, he told me that he was setting up payment to come directly to myself.

However this morning I'm informed by the tenant's case worker that his pay that's coming out tomorrow, will be going directly to the tenant! Marvellous.

So now I'm off to visit the tenant to try to get their agreement that he'll pay the rent, and will likely have to chase him tomorrow too.

Last time this happened with another tenant, they'd already spent half the month's rent, by noon the day they'd received it!... Read More

Colin McNulty

14:58 PM, 19th November 2019, About 2 years ago

Bare Trust as IHT mitigation tool?

Reply to the comment left by Iain at 19/11/2019 - 07:11
Thanks Iain, you are of course correct. I realised my folly whilst out walking the dog, which of course was to presume that at 4am and only 1 cup of coffee down was the right time to be thinking about such things! ;)... Read More

Colin McNulty

4:46 AM, 19th November 2019, About 2 years ago

Bare Trust as IHT mitigation tool?

Reply to the comment left by Darren Peters at 16/11/2019 - 12:21Deliberately vague post (see disclaimer at the end). There might be another way Darren, depending on the attitude to risk and the particular circumstances.
As per your example, an interest only mortgage is taken out, sized deliberately to reduce residual value of the estate and resultant IHT to the level covered by the applicable allowances. Qualified professional tax advice would be needed here.
However instead of blowing that mortgage money on bingo, the cash is invested in as safe a way as possible, whilst attempting to provide an income which services the monthly mortgage interest. This would be tricky I realise and quite likely to not cover the whole interest payment, and any shortfall would have to be made up from other income.
Then on the FIRST death, assuming nothing has changed wrt IHT levels and allowances, nor the estate's value, no IHT is payable and the mortgage can simply be repaid from the capital that remains (assuming the investment vehicle chosen has not fallen in value of course).
This approach would have to be carefully weighed against the insurance route already mentioned, in terms of risk vs monthly cost.
I'm making many assumptions here, not least of which is what the motivations are; e.g. I'm assuming the intention is to allow the 2nd client to remain in the property without having to sell the house to pay any IHT due. Other motivations (revealed during a proper fact find) may drive a different approach.
Disclaimer: The above is not personalised financial advice but an example of a possible approach that could be explored after a proper fact find was carried out by one of our suitably qualified and regulated brokers.... Read More

Colin McNulty

14:42 PM, 6th July 2019, About 2 years ago

A case of communication, cooperation and compliance

It used to be the case that the tenant's approval was necessary for an APA, and they could stall the whole process by simply refusing to answer DWP's request for approval, but that's no longer true.

Re repairs stopping payment of the rent, the gov's detailed guidance on APA's doesn't mention that as a possibility. See:

and Read More

Colin McNulty

14:15 PM, 9th April 2019, About 3 years ago

5k charged for Right to Consolidate?

Fair enough Ian, I'll agree your plan is certainly less risky from the perspective of MX. But risk is a value judgement and we don't have all the information necessary to make an informed opinion as to the balance of risk. Specifically we don't understand Rav's risk profile, nor know what he needs that money for that he's prepared to not sell that property at the thought of going without it, presumably to sell a different one instead?

You could argue it would be even less risky to not sell any of the MX properties at all, until he can sell them all simultaneously. But again, we don't have the necessary information to make such a suggestion.

It's always tricky giving opinions on what someone should do based on short posts on internet forums, we just don't have the full facts to hand, something only Rav's mortgage broker will have.

Besides everything in life is a risk, as the 70,000 people who get hospitalised each year for falling out of bed would no doubt attest to! :D... Read More