Howard Reuben CeMap CeRER

Registered with
Friday 7th June 2013


Trading Status
Sole Owner

Providing essential rental accommodation since

Insures properties through a broker recommended by Property118

Latest Comments

Total Number of Property118 Comments: 358

Howard Reuben CeMap CeRER

15:52 PM, 12th November 2019
About 3 weeks ago

Bare Trust as IHT mitigation tool?

This is a matter for a tax adviser, however I also have a couple of notes, too.

Firstly, because of the additional IHT relief for main residence ( I think (if this can indeed be applied) then the sum is;

£1.5m (higher value used as 'worst case scenario')
divide by 2 (each sisters share)
= £750K

£750K - £325K (nil rate) - £150K (19/20 - additional rate) = £275k.

£275k x 40% = £110k. = IHT liability

And so it's the £110k which needs 'repaying' / protecting.

(ps the £150k relief is increased to £175k for the 20/21 tax year)

There are so many ways to reduce / mitigate / eradicate and also repay this sum, and here is another one;

* whole-of-life life insurance policy, written in to Trust, for £110k, for a non smoking 'late 60's' person, could be arranged at a (standard rate) monthly premium of approximately £300pm.

For a 59 year old £180pm
For a 49 year old £125pm
For a 39 year old £85pm

And WOL life insurance policies are extremely flexible so as regular reviews are carried out and adjustments to sums assured are required, it's simply an internal amendment and no fees or professional charges are necessary. In fact, we don't charge to set them up in the first place either.

Now, for some people, the immediate thought is that £300pm (for a 'late 60s' policyholder) is a lot of money. However, the actual fiscal balance is > pay out £110,000 (at any time from today onwards) .... or £300pm. If - in the worst possible situation - the lady died one day after the policy started, all that has been paid out is £300. And in return, her Trustee would then have the full £110,000 to pay the tax man.

Insurance is a risk and there are balances to consider.

So, this is just another option, in addition to the estate planning Trusts, loan arrangements, investment bonds, etc.

The above is not personalised advice but simply a generic overview of possible options (which will only be formalised after our Advisers have carried out a proper Fact Find, received the specific IHT tax liability from a professional tax adviser, and we then provide recommendations and insured advice).... Read More

Howard Reuben CeMap CeRER

10:11 AM, 22nd August 2019
About 4 months ago

Mortgage with a council grant?

An interesting conundrum.

1) "The main condition surrounding the grant is that you must rent the property to LHA tenants for 5 years or ‘lease’ the property to the council for 5 years once the council gives you the grant and you finish the work."

This is the first quirk - most BTL lenders require a straightforward 6 or 12 month tenancy agreement (some up to 36 months) and of course there are still some lenders who won't lend on a property with 'DSS'/LHA tenants. So straight away the quantity of lenders that you would otherwise have access to, has significantly shrunk.

2) "If you wish to dispose of the property within those 5 years, you are simply required to repay the grant in full, otherwise the grant is just free money."

How is the grant money 'contracted' to you? Is it a charge on the property? This may be a consideration (issue) for the lenders too. A copy of the grant conditions would need to be reviewed before presented to any lenders.

so, taking the above in to consideration ....

3) "My concern in how mortgage companies will view the situation and whether it would reduce my chance of getting a, good rate, mortgage."

..... it won't be straightforward, and of course there are all of the other factors to assess as well, such as size of existing portfolio, aggregate LTV's, required LTV, rental income stress calculations etc.

We can possibly assist on a case by case basis, and so to contact my Team of Brokers, click on my profile link above.... Read More

Howard Reuben CeMap CeRER

17:26 PM, 16th August 2019
About 4 months ago

Landlords - what would YOU like to see in a training course?

Property owners being informed about the appropriate mortgage products for the type of tenancies they operate.

Renting a property out whilst having a resi mortgage in situ (without consent to let) is a breach of the terms
Standard BTL for AirBnB is a breach
Multi letting a property when the BTL mortgage only allows a single AST tenancy is a breach
Expired consent to let (they only usually last for 12 months) is a breach
.... And so many more.
Training a landlord to adhere to laws and rules should at least touch upon these subjects, but they are rarely included.
Happy to offer my 26+ years of experience as a Broker (not to mention my circa 20 years as a landlord too), Tessa.... Read More

Howard Reuben CeMap CeRER

14:52 PM, 7th August 2019
About 4 months ago

Lifetime fixed buy-to-let mortgages where max LTV increases the older you are

I'm looking at a deal for a Client at the moment - not necessarily using the product above, but of course it would be remiss not to offer as an alternative option for consideration - and he has a £1m property in west London, and needs a £200k mortgage. The (standard) mortgage would be approx £500pm / £6k pa, but this outgoing is of course a reduction in his cashflow and when the tax bill arrives, if he decides that this strategy is right for him, then he will have the £6000 'saved' to use towards the tax. Just one of the many features and benefits of this product. So, not just for the 'miserable peasants' Mick ( 🙂 ) and not just to put towards holidays etc., but also clever financial planning for future cashflow and business strategy arrangements... Read More

Howard Reuben CeMap CeRER

10:22 AM, 7th August 2019
About 4 months ago

Lifetime fixed buy-to-let mortgages where max LTV increases the older you are

This is not new. Canada Life is the new trading name for Retirement Advantage and I / we / Property118 published the launch of that product a couple of years ago >
The concept may now be years old, but the principle is still fantastic for the right borrower.
And available via my specialist / Lifetime Mortgage brokerage, which is authorised to advise in the areas. Contact details via my profile link above.... Read More