Lancelot

Registered with Property118.com
Friday 7th August 2015

Trading Status
Sole Owner

Insures properties through a broker recommended by Property118
No


Latest Comments

Total Number of Property118 Comments: 34

Lancelot

19:41 PM, 4th May 2020
About 6 months ago

Rent to Rent Success Stories

Reply to the comment left by Mark Alexander at 04/05/2020 - 18:29
I thought it sounded a perfectly reasonable structure, but too good to be true!

From a look at the link, the diversion of revenue from sole trader to Ltd Co is the point of contention. Sole trader rents at 100% market value to a Ltd Co - no problem.

Argh!... Read More

Lancelot

18:16 PM, 4th May 2020
About 6 months ago

Rent to Rent Success Stories

What about another form of Rent-to-Rent? No HMOs. No individual tenants subletting ad hoc.
As a UK sole trader, I rent my twenty UK BTL residential properties en bloc to a Ltd Co of which I am a major/sole shareholder. I do this at say 50-70% market value because the Ltd Co shoulders the risks associated with letting, has guaranteed me rent payment and offers a single bulk rental of all my portfolio with no voids. The Ltd Co then lets the properties individually at market value to tenants via an estate agent as is normal.
I move abroad eg. Malta, Portugal.
The Ltd Co that is renting my properties makes a profit and duly pays UK corporation tax. It then issues a dividend to me of any profits. I am UK non-resident so pay the dividend tax in Malta, Portugal etc.
I remain liable for, and pay, full HMRC rental income tax on the profits I make from letting my portfolio to the Ltd Co (at 50-70% market value).
Where is the problem with this arrangement? The structure serves a good business purpose.... Read More

Lancelot

17:48 PM, 4th May 2020
About 6 months ago

New small business bounce back loans 100% government backed

Do we really think small business bounce-back loans of 25% turnover will be available to landlords?

I might be wrong, but HMRC don't view us as a business.

Does anyone have any experience?... Read More

Lancelot

14:42 PM, 20th December 2019
About 10 months ago

Implications for UK BTL mortgage holders of moving abroad

Many thanks Neil!

I'll check the T&C's of the existing BTL products I have.

I expect the biggest issue will be if I look for new BTL products whilst I'm non-UK resident?

If I return to the UK, how long does it take for my recent ex-pat absence to stop being a negative for borrowing purposes?... Read More

Lancelot

13:02 PM, 24th July 2016
About 4 years ago

Summer Budget 2015 - Landlords Reactions

I hear that this scenario has headwinds from the revenue. But some use of a limited company (maybe up to 15% turnover?) might help a little.

My goodness, we are really being pushed into a tight corner.... Read More