Selling an HMO

[RWD3M]

You didn't, Coventry City Council did that!

Oops, did I say that out loud?!

 

[winchman]

I feel what ever you sell at the moment attracts idiots who really haven't a clue how the world works, remember they can have a viewing even when clueless and pot less, just time wasters, its a wonder they can eat and breath at the same time.

 

[CompoSimmonite]

Tenancies are all 10 months (all students at the local Medical School) currently being renewed, but all will expire July 26 when the tenants graduate (fell into place quite nicely).

We've had this one about 20 years and Mrs RWD has now decided enough is enough!

Don't forget that Capital Gains tax will be applicable

 

[gaz1]

Landlords Licence https://www.gov.uk/government/publi...e-rented-sector-a-guide-for-local-authorities
Its a bit of an odd one, there are national guidelines, that each council can interpret to suit their own needs.
They are supposed to stop the "Slum landlord" problem, in areas where housing is in short supply.
But they fall short as if you put all your housing stock into a company, its then the company that applies for the licence and goes through all the checks (they do a DBS check) not the individual.
just to add salt in the wound, housing association and council stock is exempt from the rules, private renters have to meet, you couldn't make it up.
With all the new renters rights, an acquaintance who runs and estate agents that prominently deals with rentals, about a 3rd are considering liquidating their stock. its dissuading the small mom & pop renters out of the rental market, allowing the likes of Blackrock to snap up at a discount.

just to be clear here ive seen the council rent property in just as unfit state as private renting

there is some serious places that shouldnt be rented out but they are being done this way

on another note not all places are council anymore they are now a corporation so therefore shouldnt have the exclusion reference but they still have it

as goes for the rules it should be one rule fits all and that includes the fire safety reference as well while the council property gets away with loads, private lord lords are forced to have everything

ive seen it and ive fitted it

as goes for the register of housing that is being rented they should all be on one register dosnt matter if its private or council

if your not registered on that list then you shouldnt be renting whilst the register should be free

this allows every registered renting property to be checked by either council or by the fire brigade whilst using the one rule for everyone and they are both connected

if your not registered you get fined a large fine

 

[RWD3M]

Don't forget that Capital Gains tax will be applicable

Yeah, well aware. Did not too bad on the last one but will be taking all precautions we can.

 

[dobbslc]

Are there any precautions to take if I'm just selling up?
I thought it was just a straight raid on assets by the government, I'd be interested to know if I can do anything.

 

[Dozzer]

Are there any precautions to take if I'm just selling up?
I thought it was just a straight raid on assets by the government, I'd be interested to know if I can do anything.

Any money you have spent on the upkeep or improvements can be offset against the CGT.
there is a time limit, but cant remember how many years, a grown-up will be along to fill in the details
and you will need the receipts,

Just found good piece on home improvements & CGT https://merrantiaccounting.com/property-improvements/

 

[RWD3M]

Are there any precautions to take if I'm just selling up?
I thought it was just a straight raid on assets by the government, I'd be interested to know if I can do anything.

Are you single or married? Joint names and as @Dozzer says, any maintenance/upkeep (but I didn't think improvements).

 

[dobbslc]

Married.

 

[addjunkie]

Are you single or married? Joint names and as @Dozzer says, any maintenance/upkeep (but I didn't think improvements).

Unless it’s changed….maintenance is tax deductible from the income year on year. Improvements are off set against capital gains. I had a right todo with HMRC years ago….tenanted property, rotten windows. Claimed new upvc windows as maintenance, and it was disallowed as it was considered an improvement.

So after much ping ping letters and quotes for new wood windows, plus a painter, I demonstrated that the improvement was actually cheaper than the replacement like for like.

 

[RWD3M]

Married.

And the house in joint names? Spread the joy

 

[gaz1]

Unless it’s changed….maintenance is tax deductible from the income year on year. Improvements are off set against capital gains. I had a right todo with HMRC years ago….tenanted property, rotten windows. Claimed new upvc windows as maintenance, and it was disallowed as it was considered an improvement.

So after much ping ping letters and quotes for new wood windows, plus a painter, I demonstrated that the improvement was actually cheaper than the replacement like for like.

theres a few more you can throw with that one

energy saving if they want to throw that out you can really throw that one at them as they are denying energy saving
no yearly painting needed compared to wood ones whilst that puts the owner out of pocket but gets to claim it back off of hmrc yearly as maintenance

 

[addjunkie]

theres a few more you can throw with that one

energy saving if they want to throw that out you can really throw that one at them as they are denying energy saving
no yearly painting needed compared to wood ones whilst that puts the owner out of pocket but gets to claim it back off of hmrc yearly as maintenance

Twas a while ago before all that energy saving stuff as Id owned the property since the early 70s with a sitting tenant, the argument about capital gains tax lasted a few years. IfI remember correctly it was after the index linking gain stopped in one of Lawson Budgets As none of the houses in the street had been sold in recent years, (they were all owned by my Grandmother, then gifted to myself and siblings) valuations were not easy to agree, due to sitting tenant, then sold once empty.

I remember the “District Valuer” rang me to discuss after a letter Id sent. We were about 15 grand apart on our valuations, he said “You and I are not going to agree, so how about we split the difference and close this.” I agreed, then came the Capital gains demand.