Laura Delow

Registered with Property118.com
Wednesday 16th April 2014


Latest Comments

Total Number of Property118 Comments: 238

Laura Delow

9:32 AM, 9th March 2019
About 2 weeks ago

Here we go again - PRS Right to Buy!

Reply to the comment left by Lenin Benin at 09/03/2019 - 08:42Hi Lenin. I do not think/I hope we should not panic about this PRS R2B being brought in but in todays world you can never tell. The good news is, should you choose to sell (based on the information you provided) you will not pay capital gains tax at all. This is because you mention it was your primary residence for 20 years from 1995 (when bought) to 2015, plus you also get relief for the last 18 months ownership of the property, even though you would not have been living in it (from April 2020 this will reduce to 9 months). On top of which you get Lettings Relief.

Example
- You bought at £100,000 in 1995
- you sell it on 5th April 2020 at £400,000.
- You can deduct costs of buying, selling or improving your property from your gain. These include; premium to extend a lease, estate agent selling fees and solicitors’ fees to buy/sell or extend a lease, costs of improvement works e.g. an extension (normal maintenance costs, such as decorating, do not count)
- you make a gain of e.g. £300,000 when you sell your property, which you will have owned for 25 complete years as at 5th April 2020. You lived in the whole property for 20 years, then let it out in full for 5 years.
- You get Private Residence Relief for the time you lived there (20 years). You also get relief for the last 18 months you owned the property, even though you were not living in it.
- This means you get Private Residence Relief for 21.5 of the years (86% of the time) you owned the property.
- You get Private Residence Relief on the same proportion (86%) of your gain.
- This means you will not pay capital gains tax on £258,000 of the £300,000 gain.
- The remaining 14% i.e. £42,000 of the gain not covered by Private Residence Relief is your chargeable gain.
- If you qualify for Private Residence Relief and have a chargeable gain, you may also qualify for Letting Relief. This means you’ll pay less or no tax.
Claim Letting Relief:-
You can get the lowest of the following:
• the same amount you got in Private Residence Relief
• £40,000 (£80,000 for a couple)
• the same amount as the chargeable gain you made from letting your home
- in your case it would be £40,000 (or £80,000 for a couple)
(Letting Relief does not cover any proportion of the chargeable gain you make while your home is empty).
Example
Because you made a chargeable gain of £42,000 while letting your property (after £258,000 in Private Residence Relief), you can claim £40,000 in Letting Relief. This means you’ll only pay Capital Gains Tax on £2,000
- this is less than the current annual CGT personal allowance of £11,700 [x 2 if a couple] so in effect no CGT is due.
(from April 2020, lettings relief will be reformed so that it is only available to those who are in shared occupancy with a tenant).
So CGT is not your worry.... Read More

Laura Delow

18:07 PM, 4th March 2019
About 3 weeks ago

Here we go again - PRS Right to Buy!

Reply to the comment left by Alan bus at 04/03/2019 - 17:32
Yup. So it seems. I should never have sacrificed having children so I could have a career, nor work 15 hour days with next to no social life in order to do as I was taught by my parents; save, save, save (funding the maximum in to my pension & use the rest to buy properties & pay premiums into savings plans and pay down mortgage debt asap), whilst in the early years running at a loss whilst I grappled with the world of property. Nor should I have sacrificed (and continue to do), the inordinate amount of time invested in trying to be a good landlord whilst being bashed around the head by the current government (let alone what any new party in power wants to do to me) for having been a hard working citizen who has never taken a penny from the state. Instead I should have had 10 kids, spent all my earnings on whatever took my fancy, lived off benefits (funded by the tax payer) & then be offered the G_d given right to buy my rented property from under my landlord's nose at a massively discounted price, after which I'd no doubt balk as suddenly I'd find I couldn't call my landlord to fix things.... Read More

Laura Delow

12:15 PM, 4th March 2019
About 3 weeks ago

Here we go again - PRS Right to Buy!

Am in a state of shock reading this. It's akin to a compulsory purchase order guaranteeing the landlord will lose a shed load of money. If I'm understanding this correctly then assuming no improvements/capital expenditure since owned to keep the maths simple, if I bought a property for £55,000 the beginning of 1999 then at a CPI average rate of 2.063% p.a. since 1999 to the end of 2018 = £81,070 vs £280,000 today's value on the open market. This guarantees a loss nigh on £200,000! Am I misunderstanding matters? I hope so.... Read More

Laura Delow

8:03 AM, 26th January 2019
About 2 months ago

Statement from Tim Frome on behalf of Property Redress Scheme

I think I'm being really thick so please bear with me.
i) am I right that no firm date has been set for the introduction of the new rules?
ii) and clarification is still being sought on what the situation will be for landlords who use letting agents i.e. agents already have to be a member of a redress scheme – so landlords using them would be paying twice.
iii) what is the one off/annual fee (before & after Landlord 50 discount code) for a Landlord? and does this vary per number of properties and/or whether Ltd or individual? (can't seem to find this info easily in the link provided)... Read More

Laura Delow

12:32 PM, 14th December 2018
About 3 months ago

And the landlord vote goes to - Please vote again

My husband & I voted Conservative & would again but only because we are scared of Labour getting in with the likes of Jeremy Corbyn & John McDonell at the helm. We worked too hard inputting 14 hour days for many years in order to save/invest in building our portfolio, with a much sacrificed lifestyle en route, and cannot sit by & let it be taxed to death. Therefore if G_d forbid Labour got in, my husband & I have already decided we'd sell our portfolio & emigrate as we believe Labour would introduce a tax levy on property i.e. a form of wealth tax, in particular on second homes & investment property & as one cannot move these assets offshore unlike other types of investments, we would rather sell up & get rid of the head/heartache that the Labour party would impose on us on top of the headache already imposed by the Tory government.... Read More