Property118 Ltd understands that your privacy is important to you and that you care about how your personal data is used and shared online. We respect and value the privacy of everyone who visits this website, www.property118.com
(“Our Site”) and will only collect and use personal data in ways that are described here, and in a manner that is consistent with Our obligations and your rights under the law.
- Definitions and Interpretation
In this Policy the following terms shall have the following meanings:
||means an account required to access and/or use certain areas and features of Our Site;
||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;
||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;
||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and
||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- Information About Us
- Our Site is owned and operated by Property118 Ltd, a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- Our VAT number is 990 0332 34.
- Our Data Protection Officer is Neil Patterson, and can be contacted by email at firstname.lastname@example.org, by telephone on 01603 489118, or by post at 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.
- What Does This Policy Cover?
- Your Rights
- As a data subject, you have the following rights under the GDPR, which this Policy and Our use of personal data have been designed to uphold:
- The right to be informed about Our collection and use of personal data;
- The right of access to the personal data We hold about you (see section 12);
- The right to rectification if any personal data We hold about you is inaccurate or incomplete (please contact Us using the details in section 14);
- The right to be forgotten – i.e. the right to ask Us to delete any personal data We hold about you (We only hold your personal data for a limited time, as explained in section 6 but if you would like Us to delete it sooner, please contact Us using the details in section 14);
- The right to restrict (i.e. prevent) the processing of your personal data;
- The right to data portability (obtaining a copy of your personal data to re-use with another service or organisation);
- The right to object to Us using your personal data for particular purposes; and
- If you have any cause for complaint about Our use of your personal data, please contact Us using the details provided in section 14 and We will do Our best to solve the problem for you. If We are unable to help, you also have the right to lodge a complaint with the UK’s supervisory authority, the Information Commissioner’s Office.
- For further information about your rights, please contact the Information Commissioner’s Office or your local Citizens Advice Bureau.
- What Data Do We Collect?
- Date of birth;
- Address and post code;
- Business/company name and trading status;
- Number of properties owned;
- Accountants details;
- Contact information such as email addresses and telephone numbers;
- Proof of residence and ID;
- Financial information such as income and tax status;
- Landlords insurance renewal dates;
- Property Portfolio details such as value and mortgage outstanding;
- How Do We Use Your Data?
- All personal data is processed and stored securely, for no longer than is necessary in light of the reason(s) for which it was first collected. We will comply with Our obligations and safeguard your rights under the GDPR at all times. For more details on security see section 7, below.
- Our use of your personal data will always have a lawful basis, either because it is necessary for our performance of a contract with you, because you have consented to our use of your personal data (e.g. by subscribing to emails), or because it is in our legitimate interests. Specifically, we may use your data for the following purposes:
- Providing and managing your access to Our Site;
- Supplying our products and or services to you (please note that We require your personal data in order to enter into a contract with you);
- Personalising and tailoring our products and or services for you;
- Replying to emails from you;
- Supplying you with emails that you have opted into (you may unsubscribe or opt-out at any time by the unsubscribe link at the bottom of all emails;
- Analysing your use of our site and gathering feedback to enable us to continually improve our site and your user experience;
- Provide information to our partner service and product suppliers at your request.
- With your permission and/or where permitted by law, We may also use your data for marketing purposes which may include contacting you by email and or telephone with information, news and offers on our products and or We will not, however, send you any unsolicited marketing or spam and will take all reasonable steps to ensure that We fully protect your rights and comply with Our obligations under the GDPR and the Privacy and Electronic Communications (EC Directive) Regulations 2003.
- You have the right to withdraw your consent to us using your personal data at any time, and to request that we delete it.
- We do not keep your personal data for any longer than is necessary in light of the reason(s) for which it was first collected. Data will therefore be retained for the following periods (or its retention will be determined on the following bases):
- Member profile information is collected with your consent and can be amended or deleted at any time by you;
- Anti-Money Laundering information and tax consultancy records are to be kept as required by law for up to seven years.
- How and Where Do We Store Your Data?
- We only keep your personal data for as long as We need to in order to use it as described above in section 6, and/or for as long as We have your permission to keep it.
- Some or all of your data may be stored outside of the European Economic Area (“the EEA”) (The EEA consists of all EU member states, plus Norway, Iceland, and Liechtenstein). You are deemed to accept and agree to this by using our site and submitting information to Us. If we do store data outside the EEA, we will take all reasonable steps to ensure that your data is treated as safely and securely as it would be within the UK and under the GDPR
- Data security is very important to Us, and to protect your data We have taken suitable measures to safeguard and secure data collected through Our Site.
- Do We Share Your Data?
- We may share your data with other partner companies in for the purpose of supplying products or services you have requested.
- We may sometimes contract with third parties to supply products and services to you on Our behalf. Where any of your data is required for such a purpose, We will take all reasonable steps to ensure that your data will be handled safely, securely, and in accordance with your rights, Our obligations, and the obligations of the third party under the law.
- We may compile statistics about the use of Our Site including data on traffic, usage patterns, user numbers, sales, and other information. All such data will be anonymised and will not include any personally identifying data, or any anonymised data that can be combined with other data and used to identify you. We may from time to time share such data with third parties such as prospective investors, affiliates, partners, and advertisers. Data will only be shared and used within the bounds of the law.
- In certain circumstances, We may be legally required to share certain data held by Us, which may include your personal data, for example, where We are involved in legal proceedings, where We are complying with legal requirements, a court order, or a governmental authority.
- What Happens If Our Business Changes Hands?
- How Can You Control Your Data?
- In addition to your rights under the GDPR, set out in section 4, we aim to give you strong controls on Our use of your data for direct marketing purposes including the ability to opt-out of receiving emails from Us which you may do by unsubscribing using the links provided in Our emails.
- Your Right to Withhold Information
- You may access certain areas of Our Site without providing any data at all. However, to use all features and functions available on Our Site you may be required to submit or allow for the collection of certain data.
- How Can You Access Your Data?
You have the right to ask for a copy of any of your personal data held by Us (where such data is held). Under the GDPR, no fee is payable and We will provide any and all information in response to your request free of charge. Please contact Us for more details at email@example.com, or using the contact details below in section 14.
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- Before Cookies are placed on your computer or device, you will be shown a cookie prompt requesting your consent to set those Cookies. By giving your consent to the placing of Cookies you are enabling Us to provide the best possible experience and service to you. You may, if you wish, deny consent to the placing of Cookies; however certain features of Our Site may not function fully or as intended. You will be given the opportunity to allow only first party Cookies and block third party Cookies.
- Certain features of Our Site depend on Cookies to function. Cookie Law deems these Cookies to be “strictly necessary”. These Cookies are shown below in section 13.5. Your consent will not be sought to place these Cookies, but it is still important that you are aware of them. You may still block these Cookies by changing your internet browser’s settings as detailed below in section 13.9, but please be aware that Our Site may not work properly if you do so. We have taken great care to ensure that your privacy is not at risk by allowing them.
- The following first party Cookies may be placed on your computer or device:
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- Our Site uses analytics services provided by Google Analytics and Facebook. Website analytics refers to a set of tools used to collect and analyse anonymous usage information, enabling Us to better understand how Our Site is used. This, in turn, enables Us to improve Our Site and the products AND/OR services offered through it. You do not have to allow Us to use these Cookies, however whilst Our use of them does not pose any risk to your privacy or your safe use of Our Site, it does enable Us to continually improve Our Site, making it a better and more useful experience for you.
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- It is recommended that you keep your internet browser and operating system up-to-date and that you consult the help and guidance provided by the developer of your internet browser and manufacturer of your computer or device if you are unsure about adjusting your privacy settings.
- Contacting Us
Mark Alexander - Founder of Property118
12:25 PM, 25th August 2016, About 7 years ago
There is insufficient data to be able to say whether your plan meets your objectives or not.
How much gross rent will the new property produce?
After you deduct the costs of insurance, management, maintenance, an allowance for rental voids, gas checks etc. how much will this leave you with per annum?
When you have this figure you can compare it with the amount you will be paying for your mortgage. Remember that after 2020 your mortgage interest will not be treated as an expense. Instead you will receive 20% tax relief on only.
The general principal of utilising a limited company in order to obtain the first £5,000 of dividend income for you and your wife tax free is a good one.
13:19 PM, 25th August 2016, About 7 years ago
Mark A is correct that specific advice isn't possible with just the information supplied, but I think the decision about how (and maybe even if) to proceed depends on the longer term plan.
If this purchase was to be a one off, then it is marginal if it is worth it at all
If this is to be the first of a few or many, then the ltd co route is the most sensible way to acquire the property under the new rules
The tax credit available on the finance costs for personally held properties is still significant, when coming to it from an unencumbered position
With some sums you will be able to calculate the effect for yourself and your wife of different levels of leverage on the personally held and company held properties. Those sums will help you decide if and how to proceed to add to your portfolio
13:49 PM, 25th August 2016, About 7 years ago
Thanks Mark and Jon,
The longer term plan is to make further acquisitions at about the same price over the next year so to end up with 3/4 properties in the company and then to graually sell off the non company properties as and when circumstances dictate or require.
The rent is £7200 pa. The annual expenses except mortgage interest are about £2200 pa. I will still be paying £3325 interest on the remortgage of the previously unemcumbered property in London.
Given that I am a higher rate payer already, Then I will pay 40% of (7200-2200)=2000 but get a tax rebate from the remortgaged property of £665 making my net gain of
5000-2000+ 665=3665 or about £300 pcm.. just enough to pay the new mortgage on the previously unemcumbered property in London.
Any comments most welcome
Mark Alexander - Founder of Property118
14:27 PM, 25th August 2016, About 7 years ago
Reply to the comment left by "Chris Unwin" at "25/08/2016 - 13:49":
So if your cash flow will increase by approximately zero and capital appreciation is of no interest to you why exactly are you doing this?
If you need more money than you have currently why don't you just sell property or borrow for now and sell later?
14:51 PM, 25th August 2016, About 7 years ago
It isn't an investment opportunity that I would fight you for
Do you think you could buy the target property for less (i.e. £10k+ less)
Fast forward in time a little and imagine how things would look if you did acquire 4 properties of this nature.
You would have £380k debt that you don't have now and broadly the same cashflow that you have now.
All that looks like to me is a set up for pain if interest rates were to rise.
Factor in the hassle of managing remote properties and the responsibilities of running the Ltd and it looks even less attractive
Without the prospect of capital growth to compensate for the near zero cashflow, I can't put myself into a position where I would want to go there.
Looking at it from another angle. If you put the rent up on your existing 6 properties by £10 per month each, you would get more after tax income than you would were you to buy that house.
15:02 PM, 25th August 2016, About 7 years ago
Er, isn't the £5000 dividend only tax-free if you are a basic-rate taxpayer? It's added to your other income and if it takes you and your partner over the £43K threshold, you pay tax on it. So like Mark, I don't see the point of this investment if you are already a higher-rate payer, and your tax situation is only going to get worse up to 2020. Perhaps it would be better to concentrate on managing your existing properties, paying down debt so you are never at the mercy of interest rate rises, and investing in non-property assets with any surplus from income or by selling off a house or two.
If you don't need the income or capital, the best game in town at the moment appears to me to be SIPP pensions, not property. If you do decide to buy this £95K house, I would extract any rental surplus from the company by having it make pension contributions, not dividends (unless of course you need the income for annual living costs). You and the company can keep making pension contributions until you are 75, and the pension can now be passed on in your estate, rather than used to generate unwanted income.
One way to get your tax bill down would be to spend significant sums on renovations, which could be part of a package of capital investment that also improves the property. Obviously you have to apportion expenditure between replacement and improvement, but if, for example, you built an extension that also required you to replace a clapped-out kitchen (photos needed as evidence), then the kitchen part of the work could be deducted from your annual income and keep your tax bills down.
16:09 PM, 25th August 2016, About 7 years ago
Reply to the comment left by "Tony Atkins" at "25/08/2016 - 15:02":
Mark, Jon, Tony,
Thanks to everyone for confirming what I already suspected.
Its a shame as all I wanted was to make a an investment that would generate a couple of hundred pounds a month and increase in value modestly over the long term.
The tax changes have stopped me and others in our tracks.
This exercise does show the importance of really understanding the tax changes and how they will affect you and how import pre purchase analysis is, now more so than ever before.
Theres one last job to do on this ...Call the estate agent and say "No Thanks, courtesy of Mr Osborne"
Mark Alexander - Founder of Property118
16:14 PM, 25th August 2016, About 7 years ago
Reply to the comment left by "Chris Unwin" at "25/08/2016 - 16:09":
Just because this deal doesn't stack up it doesn't mean the next one won't.
You need to find a higher yield.
16:29 PM, 25th August 2016, About 7 years ago
Yes, at a higher yield it can still work
Hence my question previously about buying it for (a fair bit) less
Why not offer £80k and see what happens?
The worst case is that the seller says no, which (imo) is always a better outcome than you saying no without finding out if it could be bought for less.
16:33 PM, 25th August 2016, About 7 years ago
Thanks but already got them down from 100k