Nick Pope

Registered with Property118.com
Sunday 18th August 2013


Latest Comments

Total Number of Property118 Comments: 161

Nick Pope

7:40 AM, 3rd April 2021
About A week ago

Best for revaluation - vacant possession or sitting tenant?

Firstly I assume that these are existing tenants on AST'a and not sitting tenants with security of tenure which would have a significant (25% - 50%) effect on value.
From the valuation point of view, lenders require a valuation at market value with the assumption that there is vacant possession. It is then their responsibility to approach the perceived levels of risk during the undewriting process to reflect their own business model.
On the subject of CGT I am unable to comment professionally but would say that I strongly believe there will be tax rises as the covid threat recedes and that CGT is an easy tax to tweak upwards, perhaps by increasing the tax by an additional, say, 5% if your marginal income rate is 40% or 45%.... Read More

Nick Pope

7:50 AM, 30th January 2021
About 2 months ago

Taxation of 7 months rent in advance?

I may have a ossible answer to this query.
We have been dealing with an estate where the property was let in October 2019 to a Chinese national who could not supply financial references so the full year's rent was paid in advance. The owner (a 40% taxpayer)sadly died in the November.
We had to do a tax return for 2019/20 and 2020/21 and the accountant successfully argued with HMRC that even though the rent had been paid in advance there was a possibility that the tenancy could be interrupted, for instance, if the house was damaged by fire and thus the income was attributed to both years and only 28% was payable on the 2020/21 income.
Of course, HMRC may have a different view if the owner is still alive!... Read More

Nick Pope

12:12 PM, 18th January 2020
About A year ago

Do I pay CGT if I sell to a friend at minimum value

Bear in mind also that Stamp Duty Land Tax would be payable - the amount your friend actually pays doesn't matter, the tax is payable on the value at the time of transfer. If a price appears to be artificially low the matter will be referred to the DIstrict Valuer's office.... Read More

Nick Pope

14:21 PM, 4th January 2020
About A year ago

Real cost of borrowing for a deposit

Reply to the comment left by The Forever Tenant at 03/01/2020 - 12:13
That's a great idea!... Read More

Nick Pope

16:17 PM, 21st December 2019
About A year ago

Can I contract that any new tenant provides their own reference?

I had this scenario arise recently where a tenant left and the remaining tenants found another to take over. He seemed OK but as the old references were very good and the remaining 3 could cover the rent easily I simply reminded them that they were jointly and severally liable for the rent so if the new guy did not pay it was their responsibility. A few days later they sent me a credit reference on the new tenant that they had got and paid for - result.... Read More