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  • jpkeates
    replied
    Originally posted by theartfullodger View Post
    I fear you've lived a quite life.... e.g.
    http://www.mirror.co.uk/news/uk-news...after-10049947
    A visit wouldn't have prevented that fraud, though, would it.

    If you are a landlord, use the forms linked here to put a restriction on your property that should reduce the risk of fraud.
    https://www.gov.uk/protect-land-property-from-fraud

    Leave a comment:


  • loanarranger
    replied
    A notification has today been received from Aldermore mortgages in respect of how they will in future assess rental income in helping determine affordability for Regulated Homeowner applications , they are not alone in taking account of the impending changes in taxation of Buy to Let properties. At a time when all lenders Affordability Matrix make the determination of how much one can potentially borrow more challenging this advice needs to be borne in mind particularly if the applicant is indeed a Portfolio Landlord.

    "• How rental income is assessed when used as additional income - due to the upcoming tax changes for buy-to-let landlords, rental income from buy-to-let properties held in the applicant’s personal name will be assessed by our underwriters to determine the impact of future tax liabilities.

    This may mean that the amount of rental income which can be included in our affordability calculations is reduced.

    Leave a comment:


  • loanarranger
    replied
    Boletus , their phraseology might have been better worded , but I suspect the essence of what was communicated was if someone was found to have procured a mortgage by providing misrepresentation of facts , the borrower would quickly find that the legal process of having the loan repaid or at worse obtaining a Court Order for repossession would be quite speedy.

    None of the brokers expressed their views probably because none of them had been party to such happenings , one just never knows.

    We now move onto matters which are pertinent to the current scene so far as the Mortgage Market and lenders are concerned.

    Leave a comment:


  • boletus
    replied
    Originally posted by loanarranger View Post
    I only communicate what was disclosed, nothing more and nothing less.
    I don't disbelieve you at all that someone at your conference said it or that this goes on.
    What I find hard to believe is that they are inspecting BTL properties within the first 12 months (due to the practicalities) or summonsing for eviction (as there is no such thing in this country).
    Seems to me like they were trying to put the frighteners on a conference full of mortgage brokers.

    Leave a comment:


  • loanarranger
    replied
    I only communicate what was disclosed, nothing more and nothing less.

    Many years ago as a branch manager of a BS I visited properties where the borrower was in arrears. If they weren't in I went through the rubbish bins , it's amazing the amount of confidential information which was dumped for collection.

    Leave a comment:


  • theartfullodger
    replied
    jpkeates,

    I fear you've lived a quite life.... e.g.
    http://www.mirror.co.uk/news/uk-news...after-10049947

    Leave a comment:


  • jpkeates
    replied
    I don't see how visiting the property would be necessary.
    BM solutions have access to someone's full credit history, and that would include their home address.
    Even people committing mortgage fraud would find it hard to live in one place and pretend to live in another.

    Leave a comment:


  • boletus
    replied
    Originally posted by loanarranger View Post
    Beware if one tries to secure BtL finance by making false declarations

    At a conference today , the audience was made aware that all BtL mortgages which complete with BM Solutions are subject to the lender making an inspection of the property within the first twelve months and if it is found that an applicant has secured a BtL facility by making a false declaration and is actually residing in the property will find themselves being summonsed for eviction
    What does that mean? I've just searched for it and it came up with evictions in Michigan, never heard of it in England.
    I also find the practicalities of BM solutions inspecting all rental properties hard to believe. There are far easier ways for them to investigate this.

    A more credible deterrent would be to show some convictions involving mortgage fraud;

    http://thinkfree.org.uk/forum/index....c=2236.10;wap2

    Leave a comment:


  • loanarranger
    replied
    Beware if one tries to secure BtL finance by making false declarations

    At a conference today , the audience was made aware that all BtL mortgages which complete with BM Solutions are subject to the lender making an inspection of the property within the first twelve months and if it is found that an applicant has secured a BtL facility by making a false declaration and is actually residing in the property will find themselves being summonsed for eviction at the earliest moment with all the ramifications which would follow. It seems that concerns are being expressed amongst a number of lenders that BtL mortgages have been procured as a back door and modern twist to Self Cert mortgages. indeed the message was made all the more serious in sofar as the steps which might be taken against the introducing broker.

    Leave a comment:


  • loanarranger
    replied
    Tax Man Sharpens his claws

    I thought that this article might be worth posting to illustrate the consequences of deliberately evading tax.


    A landlord and property developer has been sentenced to two years in prison for tax evasion of £281,000 after an investigation by HM Revenue and Customs

    HMRC found that Teddington-based Michael Charles Waddingham, 44, had not submitted tax returns for several years and had not declared rental income.

    Waddingham had been a director of property development firm Chantry Estates, owned 17 properties and had income of more than £100,000 per year due to the directorships.

    Waddingham admitted tax fraud on 17 January this year and was sentenced at Kingston Crown Court on 10 March after being kept in jail overnight.

    He was sentenced to two years in jail, suspended for two years, plus an additional fine of £200,000 on top of the £281,000 tax he has already repaid.

    He was also given 200 hours of community service and a six-month curfew between 8pm and 5am, enforced with an electronic tag.

    In court, Waddingham admitted failing to submit any self assessment tax returns between 2008 and 2012.

    Waddingham was also the part owner of several racehorses and is currently the director of a betting syndicate.

    Following his arrest in 2015, HMRC forensic accountants worked with his own accountants to calculate the total income tax and capital gains tax that he owed.

    Waddingham has six months to pay the additional £200,000 fine.

    One thing that is for certain is that he won't be able to get a mortgage for some considerable time to come .

    Leave a comment:


  • loanarranger
    replied
    One of the Forum contributors was expressing concern over the lack of funding solutions in Northern Ireland, I am pleased to detail an announcement by Nat West for Intermediaries which might prove of assistance but the only caution is that they do not accommodate Limited Co BtL applications.

    NatWest Intermediary Solutions will launch in Northern Ireland next month, offering mortgage brokers exactly the same proposition, lending criteria and policy as in England, Wales and Scotland.

    NatWest said invitations to launch events will be sent to brokers in due course.

    Leave a comment:


  • mickey16
    replied
    The big question is ,are landlords still buying ?When the actual tax hikes hit unprepared landlords,will they decide to sell?I guess time will tell.

    Leave a comment:


  • loanarranger
    replied
    Expected SDLT surcharge profits hiked by £600m for 2016/17

    By Sam Barker 8th March 2017 4:36 pm 8th March 2017 4:36 pm

    The Government expects its stamp duty surcharge on buy-to-let properties and second homes to raise an extra £600m for the 2016/17 year.
    The Government announced a 3 per cent surcharge on buy-to-let and second properties in November 2015, but the charge was not launched until April 2016.
    Budget documents released today say: “The four month gap between announcement and implementation allowed buyers to bring forward transactions and avoid the surcharge.
    “While we allowed for this behaviour in the original costing, the extent of it was significantly underestimated.”
    The Treasury says it originally expected to raise £700m from the surcharge in 2016/17, but has now raised its expectation to £1.3bn.
    However, the Treasury says the exact figure will not be known for another three years due to taxpayers being eligible for a refund if they sell their main residence within 36 months.
    Last November the Treasury announced its first expected hike in the surcharge tax take for the 2016/17 to 2020/2021 years by 81 per cent to £6.9bn

    Leave a comment:


  • loanarranger
    replied
    Buy to Let Landlords Savvy on Changes on tax and regulatory matters

    Buy-to-let landlords are fairly well informed on tax and regulatory changes in the sector, according to a YouGov report.

    The Council of Mortgage Lenders reports that the survey of 925 mortgaged BTL landlords, conducted in December and January last, found that over two-thirds confirmed that they were aware of the change

    High-income landlords were more likely to be anticipating it, with over 80 per cent of those earning more than £100,000 per year reporting awareness of the measure.

    Roughly 30 per cent of those polled said the changes would not affect them and a CML spokesperson believes that this could actually be the case.
    “For example, if you operate your lettings through a corporate structure, fall below the threshold for paying income tax, transfer the property to a spouse who does not pay tax, or do not take advantage of mortgage interest relief in the first place, the changes would not affect you,” the spokesperson explains.
    About 70 per cent of buy-to-let landlords were aware of additional stamp duty for second and subsequent homes, which was introduced last year.

    However, only 45 per cent of the landlords sampled by YouGov were aware of the PRA requirements that new buy-to-let mortgage applications be subject to a stressed interest cover ratio (ICR) test.

    The CML says that the survey suggests that higher interest rates are not an issue that concerns landlords.

    Nearly 80 per cent of respondents said they could manage an interest rate increase of 1.5 percentage points over the next three years.

    Almost three-quarters (74 per cent) reported that it was easy or very easy to afford their mortgage repayments, indicating that most have already built in a buffer to militate against adverse conditions, says the CML.

    However, it says this buffer may later be absorbed by the increased tax bill that many will face.

    Leave a comment:


  • loanarranger
    replied
    Tenant Demand Rising

    Landlords are seeing increased tenant demand for rental properties, according to Paragon Mortgages.
    The lender’s latest Private Rented Sector Trends report says that 94 per cent of landlords described tenant demand as stable or growing.
    Fewer than one in 30 reported a decline.
    Paragon says it has seen a rise in the proportion of its landlords who think that tenant demand is ‘growing’ or ‘booming’, up to 45 per cent from 37 per cent.

    Meanwhile fewer think that tenant demand is stable than did three months ago.

    Half of residential landlords expect tenant demand to increase over the next 12 months while only 5 per cent expect it to fall.

    The report adds Government plans to cut tax relief on buy-to-let mortgage interest and hike stamp duty hit landlord sentiment last year.

    Around 25 per cent of those surveyed in Q1 2016 had plans to sell property.
    But now Paragon says that landlord sentiment is improving, partly because they have drawn up plans to help ease the impact of the changes.

    Now around 17 per cent of landlords have plans to sell. Also, the proportion of landlords wanting to purchase buy-to-let property in Q1 2017 has grown to 13 per cent, up from a record low of 9 per cent 12 months ago.

    Paragon Mortgages managing director John Heron says: “With no material improvement in the supply of new housing against a background of strong population growth and household formation, it is no surprise that landlords are continuing to experience strong rental demand.
    “It is promising therefore that there has been some improvement in landlord buying intentions, albeit from a low base.
    “Any boost this gives to improving supply to the sector, however, needs to be balanced against the additional upward pressure that we are likely to see in rents as a result of the phased impact of the changes to the taxation of rental income.”

    Leave a comment:

Latest Activity

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  • SDLT and purchase reservation fees
    by ritfor
    Hello folks,

    For second homes:

    Purchasing a property for 33k. Reservation fee 6k. Total 39k = No SDLT.
    Purchasing a property for 35k. Reservation fee 6k. Total 41k = 3% SDLT.

    This is correct isn't it?

    Thanks.
    20-06-2020, 12:03 PM
  • Reply to SDLT and purchase reservation fees
    by combo75
    I don't know, my head is spinning.

    I have just been to look at a 4 bed Student let terraced house, currently let out £1850pcm.

    The current landlord is diabolical and the students are complaining about the state of the place. It needs quite a bit of updating but it's not a...
    02-07-2020, 18:27 PM
  • Reply to SDLT and purchase reservation fees
    by BTL investor
    hech123,

    You could be right, the truth is that nobody knows what’s going to happen that’s why the experts are predicting different outcomes but I struggle to see how me purchasing a property today for £200,000 with £7,500 of stamp duty and receiving a pre-tax and pre-expenses rental...
    02-07-2020, 11:41 AM
  • Reply to SDLT and purchase reservation fees
    by BTL investor
    combo75 I don’t see the attack on landlords coming to an end anytime soon, both labour and conservative governments have spent the last 3 or 4 decades funding free homes to asylum seekers, single mothers and pretty much anyone that doesn’t want to go to work to buy their own home or pay their own...
    02-07-2020, 11:11 AM
  • Renovation Loan for a Right To Manage Company
    by AlleyRTM
    Hello,

    I am a director of a Right To manage company, and we need extensive renovations to our roof, and other parts of the building.

    Does anyone know of a way to gather the funds to pay for this, like a loan or grant?

    Is it possible for an RTM company to take...
    30-06-2020, 04:39 AM
  • Reply to Renovation Loan for a Right To Manage Company
    by loanarranger
    Good point hech123, I would add that even if a bank were prepared to lend as unlikely as it is , why on earth would the Directors be prepared to give their Personal Guarantees forsuch borrowings. I fear that the liability rests in seeking a surcharge for the respective leaseholders to fund the costs...
    02-07-2020, 09:32 AM
  • Reply to Renovation Loan for a Right To Manage Company
    by hech123
    I would imagine not. You should get it from the leaseholders, it is there responsibility. You may get a loan at high rates if there is any value in the Freehold if you own that but if you are just a RTM company with no assets then getting a loan would be extremely difficult . Really you should have...
    02-07-2020, 08:37 AM
  • Reply to SDLT and purchase reservation fees
    by hech123
    I very much doubt the market is going to have a correction downwards, I am really not even sure why any experts are predicting this. Large house price falls usually fall exponential growth in houses making them very unaffordable. Add to this that banks are well capitalised and looking to expand lending....
    02-07-2020, 08:32 AM
  • Reply to SDLT and purchase reservation fees
    by combo75
    Hi BTL, I am in the same position as you and I am sitting on quite a bit of money for deposits. But I am not willing to pay £16-22K in SDLT towards buying a property.

    I have noticed that a lot of property seen in my area is coming down but not by enough.The furlough scheme is keeping everything...
    02-07-2020, 08:25 AM
  • Reply to SDLT and purchase reservation fees
    by ritfor
    Apologies Gordon, I should have said that the property would be in need of refurbishment....
    01-07-2020, 17:31 PM
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