Ducati Sporting Club UK > General > Idle Chat > any house rental experts??

[Ray]

A mortgage on a let property usually attracts a higher rate of interest if you go that route.

The tax side can make yer eyes water as well.

A mate made £200,000 on a property on paper but just couldn't bring himself to sell it when he realised HMG were gonna trouser thick end of £80,000 of that £200,000

Plan B is now in operation needless to say.

It's not something to enter into lightly, your efforts might also bring IHT issues are well.

I'd deffo look carefully in to the tax side and how it may affect your particular circumstances.

Ray.

[Ozz]

Trick with CGT is to have lived in it for a while! That way you get the last 3 years of ownership treated as if you reside there and therefore tax free....

[CK]

Bradders, over this last summer I worked for a national chain of letting agents - in the 'customer care' - this meant for snagging/extending leases/evictions/inspections/inventories/GSC's/damages etc etc.

Well - all I can tell you is that it opened my eyes big time

C, not an expert BUT now knowing what to try & avoid!

[MJS]

See the thread I've just posted about bailifs etc., I know of several people who have been left with a string of debt collectors, bailiffs etc. chasing ex-tenants for money they'll never get back.

Some tenants use rental properties purely for having an address from which to run up big debts - I have a friend who evicted tenants 6 months ago, but the new occupier is still regularly receiving mail/visits for the previous tenant, who it seems has run up huge debts...

Martin

[CK]

you are so right martin.
The law is now very heavily weighted to the tenants side.
Paul - this can usually go quite well, but in some cases can be downright horrible.
I've seen LL's eventually lose the home they were renting out, purely down to finances, but that is at the extreme end of the scale.
Worst I reckon is you'd have to redecorate/replace floor coverings etc.
Do ensure you have a GSC for the property (LL's can & have been sued over not having a current one)
From next year, you must also have a full electrical check & cert (not sure of date - airbrushed from my mind atm)

Finally - read here for advice to TT's: http://www.debtquestions.co.uk/legal_rights.php

[psychlist]

Paul, we looked very deeply into doing exactly this recently. Instead of selling my house we were keen to rent it out. Needless to say, after talking at length to an agent in Waterlooville, we decided there were too many expenses/pitfalls and we'd be better off using the equity from my house to reduce the mortgage considerably in our new house (when we get one!).
Funny thing is, we're now temporarily renting from that same agent!
Happy to discuss mate.
Paul.

[chicken]

The timing of this thread makes me laugh.
I just found out over the weekend that a house I rent out has been used as a pot-farm.
House is now a wreck and the furniture has all gone. My business partner is investigating the costs of fixing and is experiencing a severe case of the munchies...