How to protect my unencumbered properties?
11:49 AM, 3rd March 2015, 11 years ago
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I have over 30 properties in total of which I own 8 outright, and rest are on Buy to Let mortgages.
I am looking for some advice on how to protect the 8 I own outright in the unlikely prospect of an increase in mortgage rates like we had back in the 70s ( I think) so the mortgage company would not be able to touch them ?
Regards
Tony
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Yields up to 8.5% and returns up to 17.8% in Sheffield
Member Since June 2013 - Comments: 113
5:14 PM, 3rd March 2015, About 11 years ago
Reply to the comment left by “Claudio Valentini” at “03/03/2015 – 15:33“:
claudio its always best to be prepared for the worst and if the worst dosent happen evrything is good thats my motto
Member Since September 2013 - Comments: 64 - Articles: 1
6:30 PM, 3rd March 2015, About 11 years ago
If you were considering transferring the 8 properties to someone else to keep them out of a potential bankruptcy be aware that a trustee in bankruptcy can apply to the courts to have gifts or transactions at an undervalue set aside for up to 5 years afterwards.
Member Since July 2013 - Comments: 303
7:55 PM, 3rd March 2015, About 11 years ago
On the transfer there would be a potential stamp duty and or capital gains tax liability arising.
We have all heard of ” all is fair in love & war ” I feel business should be added to this.
Member Since July 2013 - Comments: 1434
10:42 PM, 3rd March 2015, About 11 years ago
Reply to the comment left by “tony salmon” at “03/03/2015 – 17:12“:
two wrongs a right do not make.
Member Since June 2013 - Comments: 113
7:33 AM, 4th March 2015, About 11 years ago
Reply to the comment left by “Michael Barnes” at “03/03/2015 – 22:42“:
michael barnes what do you mean, please elaberate as i dont see anything wrong with what im trying to do , its called protecting your asetts,its no different to people gifting properties to there children so as not to pay Ineritance tax in future years or even when they might possibly end up in a care home
Member Since July 2013 - Comments: 22
10:09 AM, 4th March 2015, About 11 years ago
Hi Tony,
It might be worth investigating Trusts. We’ve got an aticle on the subject with Oliver Pughe from Penguin Wealth coming up in the April issue of Your Property Network that might be of interest.
Member Since July 2013 - Comments: 561
10:26 AM, 4th March 2015, About 11 years ago
Personally I would look very carefully at if it was possible to sell all but 10 properties and live of the income from these properties for the rest of your life. Hence not being a slave to the banks anymore. Cutting your cost of living and therefore being able to reduce the member of properties with mortgages, may work well.
“The rich rule over the poor, and the borrower is servant to the lender.” I am choosing to make myself a “servant to the lender” at present, but hope I will be wise enough to know when I should buy my freedom, by selling up some properties.
Member Since June 2013 - Comments: 113
10:27 AM, 4th March 2015, About 11 years ago
Reply to the comment left by “Jayne Owen” at “04/03/2015 – 10:09“:
Jayne thanks for that
Member Since June 2013 - Comments: 113
10:31 AM, 4th March 2015, About 11 years ago
Reply to the comment left by “Ian Ringrose” at “04/03/2015 – 10:26“:
ian if i lived in london i might be able to do that ,but im from the midlands so the rents that are coming in are not enough to retire unfortunatly
Member Since July 2013 - Comments: 561
10:47 AM, 4th March 2015, About 11 years ago
Reply to the comment left by “tony salmon” at “04/03/2015 – 10:31“:
Even 10 lots of the 1 bed rent for Birmingham (as an example) allowing 25% for costs, put you in the top 25% of earners in the UK. Maybe if you wish to sleep at night, you should not be as greedy…
But I was assuming you would keep your 10 BEST properties…. So do a lot better then this.