Kris Marsh

Registered with
Tuesday 17th January 2017

Latest Comments

Total Number of Property118 Comments: 3

Kris Marsh

10:20 AM, 21st February 2017
About 3 years ago

Straw poll on Mortgage renewal options?

I would first collapse those costs into (1) total cost over the offer period and (2) total cost per year. That will at least give you an easy direct monetary basis for comparison. Then you can consider the fixed/variable rate vs the interest rate outlook.... Read More

Kris Marsh

9:41 AM, 26th January 2017
About 4 years ago

Buying and splitting 2 self contained flats in one Freehold into Leaseholds?

Note, however, that you can't grant a lease from yourself to yourself. In this case you will need to purchase/transfer the freehold or leaaeholds (or both) into separate companies.

One common reason to do this, is buy-to-keep, so you can remortgage each leasehold unit separately. Remember the minimum property value for mortgagability(£50k) amounts and unit sizes (30sqm+) if you plan to do this.

Other things to consider, assuming at least that you will sell the units individually in the future:
* Imagine you were buying the lease in the future. What's reasonable and desirable?
* Get the lease length + mgmt charge right
* Split the utilities - One per unit, and most likely one for the common areas.
* Therefore one consumer unit, electric rings, boiler and rads, water pipework per unit.
* Sound proofing upgrades between units... Read More

Kris Marsh

14:10 PM, 17th January 2017
About 4 years ago

Dividends And Other Tax Perks For Landlords Who Incorporate

Assuming no other income... Don't forget the personal allowance, and the NI threshold! Quick-n-dirty stab at the figures:

Profit £130,000
- Salary: £8,060x2 = £113,880
Corp Tax 17%: £19,359
Net profit: £110,641
Distribution to each director: £55,320

Per Person:
Salary: £8,060 (no income tax or NI)
Dividends up to Personal Allowance Threshold (£11k-£8060): £2,940 (no tax)
Dividend allowance: £5,000 (no tax)
Dividend at basic rate: £39,320 (7% tax = £2,752)
Total Tax Payable: £19,359 + £2,752x2 = £24,863

Total Income Per Person: £55,320
Tax Per Person: £12,431
Effective Tax Rate: 22.5%... Read More