Regina Baidoo

Registered with
Tuesday 6th May 2014

Latest Comments

Total Number of Property118 Comments: 3

Regina Baidoo

0:46 AM, 13th January 2020, About 2 years ago

The best property investing strategy for 2020

This seems a workable sensible solution if allowable.

Hypothetical question: if I’m a current landlord with property in my own name, assuming I set up a New Ltd Co with the sole purpose of PLO arrangement. If the arrangements for the monthly lease is set to a minimal amount, such as the same as the monthly mortgage payments level or a nominal £1 monthly lease, then the NewCo PLO rent the property at the market rate and paying corporation tax, I would think this will mean my position prior to the PLO means less income, therefore lower tax although still pay the administrative costs as this will not change.

However, I will now have further administrative costs with the PLO but the admin costs are tax allowable for the Ltd Co and I’m paying corporation tax rate on the rental income and relief on the cost of the monthly lease by Ltd Co instead of a 40% personal tax rate on rental income with no mortgage relief.

Just from an initial front loaded costs perspective, I would imagine PLO to be better than exiting now as a landlord and paying 18% or 28% CGT, then having to find a further 25% deposit, additional stamp duty costs and further legal costs to reinvest in a Ltd Co. From Simon’s article, it suggests this is a possibility but I’m not aware of any limitations to put such a structure in place if I already own the asset and I’m still a shareholder in the New Ltd Co that is the other party to the PLO.

Does anyone know if this is a possibility?

I just can’t get my head around who or how the ridiculous current situation for Landlords came about under S24. It seems the harder one works to be responsible and invest for one’s future retirement, someone else thinks one should be punished for being responsible. It sends the wrong message and suggest we should all be reckless and not invest for our old age and wait for welfare. Working and being responsible should pay. We already paid tax on the earnings that we used to make the initial property investment, we also pay taxes on any income we make and pay tax when we sell as well as when we die!!! We’’re already being killed off with this S24 regime which suggests we might as well be reckless and not save anything and rely on welfare at our old age, although as there’s no welfare pot and no landlords to pay some taxes into it, everyone looses including HMRC. I really wish there’d be a rethink of this strategy by current Administration as some are investing abroad now such as France where the system even pay some of the taxes back to the Purchaser - I don’t know all the facts here though. This strategy is disastrous for the UK market in my opinion unless there’s a rethink in the budget.

Small investors being prudent should not be treated penalised in this way whilst REITs are off the hook. I think I recall reading something here that the initiator or advisor of this was then made a senior person at one of the larger REITs, clearly he would get a decent pension there but is there a connection here???... Read More

Regina Baidoo

10:24 AM, 17th July 2019, About 2 years ago

Illegal HMO- Do we advise Council?

Reply to the comment left by Regina Baidoo at 17/07/2019 - 10:09
I forgot to add that the £30K fine per offence is a real possibility so the sooner you act the better. The tenants could also report you and then you would very likely be fined so my suggestion is to act fast to avoid possibility of being fined. You could also contact Landlord Action for advice and legal help.... Read More

Regina Baidoo

10:09 AM, 17th July 2019, About 2 years ago

Illegal HMO- Do we advise Council?

I have a similar situation.
I contacted my Council straight away and told them I was concerned about the health and safety of the tenants at the property. I made sure that this was in writing that I told them by sending email. I also told them I have told head tenant to stop this immediately.

This means they have an obligation to ensure that the tenants are safe. This can have two outcomes, they will tell you that it’s your responsibility to ensure the safety of the tenants or that they go there and ask tenants to leave. If that’s what you’re after.
They said it was my responsibility and that I should do all the risk assessments.
This means that I should not be foul of all the landlord obligations for single let such as EPC, Electrics, Fire, Risk Assessment, deposit protection, insurance. By already having all this in place, if Council came and did risk assessment, I had met your obligations.
I got the 3 month extension which could be extended if proven eviction in process for breach or works to comply with licence.

Because you have told them, they may very likely give you an exemption to the licence for 3 months to put things right. Within this period you could terminate tenancy agreement due to breach.
- Section 8 - Ground 2 - property subject to Mortgage which does not include HMO
- Section 8 - Ground 6 - Landlord can take back property if they need to do vast repairs.
- Section 21 - Breach of tenancy Agreement: tenant not his/her immediate family live at the property.
- Section 21 - not to use premises for business
I’ve served notice for both Section 8 and Section 21 so if Section 8 fails there’s hope for Section 21.
It’s very stressful and wish you best. Do risk assessment.
Good luck... Read More