Darren Peters

Registered with Property118.com
Saturday 2nd January 2016

Insures properties through a broker recommended by Property118
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Latest Comments

Total Number of Property118 Comments: 154

Darren Peters

12:04 PM, 24th November 2020
About 6 days ago

Non-resident Landlord scheme and 6 months rule?

"A landlord who lives abroad for more than 6 months of the year must pay tax on any income they get from renting out property in the UK. If the landlord is a company or trustee, the rules about their usual place of abode apply."

Is the above a continuous 6 month period or the average over the year? For example, if Josh went abroad for 4 months, came back home to the UK for a week then went abroad again for another 4 months, has he been abroad for 4 months or 8 months in HMRC's eyes?

"You will need to deduct tax from rent if you are:
a letting agent
a tenant who pays over £100 a week in rent and whose landlord lives abroad"

Josh states lodgers as opposed to tenants. If it's Josh's PPR and they are lodgers where normally £7500pa is tax free does that still drop to £5200pa (£100 per week) before disclosure is necessary?... Read More

Darren Peters

11:48 AM, 24th November 2020
About 6 days ago

Tax implication for taking and paying back mortgage payment holiday

Interest is on the loan is deductable, capital repaid isn't. I don't know if you get to choose which of these you pay and in what proportion. Ask your lender what is possible. If they agree to take a large interest payment to 'catch up' it will be deductible. If they insist that any payment is a mix of capital and interest only the interest will be deductible.

In any case, your lender should be able to provide you with a statement of interest paid for your tax year stating the interest paid for that year.... Read More

Darren Peters

10:03 AM, 19th November 2020
About 2 weeks ago

Commercial property - EPC clarity required?

Just commenting to reiterate what Freda said, get a commercial solicitor to draw up a new Lease. It's a much more complicated document and arena than an AST.... Read More

Darren Peters

16:51 PM, 16th November 2020
About 2 weeks ago

Do I borrow and renew lease now?

Reply to the comment left by Highland Lass McG at 16/11/2020 - 13:37
Have a look at the leasehold valuation calculator link above. How does the council's offer compare to the valuation off the calculator? The council might be offering a good deal.

My understanding is that local authorities can't take low offers because they have a duty to the tax payer but they sometimes have a blanket deal where it's cost effective since they use a few representative valuations of their stock to get a value for lots of properties. Ie economies of scale on their side passed on to the Leaseholder.... Read More

Darren Peters

13:45 PM, 13th November 2020
About 2 weeks ago

Do I borrow and renew lease now?

Reply to the comment left by Mike at 13/11/2020 - 13:24
I agree with Mike but the mortgage may be an issue for Richard.

It's not clear whether the mortgage ends in 7 years or just goes from a low rate to a higher rate. It's unusual to have a 7+ years special rate (though there are some 10 year fixes) so I suspect the mortgage will be ending.

If it ends, and a new mortgage is needed by Richard it may not be available.... Read More