(covering marple, the bridge, mellor and compstall)

Category: ASK JONATHAN

STAMP DUTY ABOLISHED IMMEDIATELY for first time buyers!

If you haven’t already heard, first time buyers will NOT pay stamp duty up to £300,000 with immediate affect. We are still waiting on clarification if this applies to people who have already exchanged. This could save some first time buyers up to £5,000, which will certainly help people moving onto the property ladder.

As this will now bring more first time buyers out of the wood work it will increase demand at the lower end of the market place. The ripple effect of this will see demand for people to move up the property ladder, so larger family homes will also see the benefit.

This is great news to our local market and the UK property market as a whole, which is much needed due to the constant negative news stories surrounding the property market recently and Brexit causing uncertainty.

The other good news is funding for new builds will be supplemented by £44bn which should fuel a very positive housing market in 2018 and going forward.

If you would like any advice on how this may effect you directly please do not hesitate to contact me personally.

 

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Keeping money aside for expenses

Renting a property is as simple as purchasing the property and letting it out, you need to ensure the property in maintained and that you money set aside to cover these expenses. Although lenders will typically require the rental income of your investment property to be at least 125% of your mortgage payment amount, this doesn’t always mean that the property will generate positive cash flow or give sufficient net profit to cover all the expenses of maintaining the rented property over the typical 15 to 20-year ownership.

As well as regular and one-off maintenance expenses, allowances need to be made for times when there may be no rental income. Tenants may stop paying their rent and the property is sometimes empty between tenancies, and you still need to be able to cover the mortgage and other costs during this time.

It is therefore vital that you budget properly to ensure that the investment is worthwhile and not going to cost you money month-on-month, before you commit to buying a property to let.

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which landlords insurances are available?

Landlord insurance is similar to your normal home insurance but is designed to cover rental properties. Your standard home insurance will not be adequate for covering buy to let properties also.

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i have just purchased my first btl property and would like to know what reference checks you conduct on tenants?

We employ the services of an external referencing agency to ensure thorough checks are carried out on every applicant. These include, full credit checks, employment references, affordability checks and previous accommodation reference. We are also required under the immigration Act to check each applicant has the Right to Rent in the UK. As an agency it is important for us that we find you the right tenant for your property.

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i am looking at renting out a property, should i rent it with or without furniture?

The question of renting a property furnished or unfurnished does depend on the location and type of property. For example, if your particular property is more suited to a family, they may already have their own furniture which they would prefer to use. However, young professionals renting flats may prefer the property to be furnished. One of the most important things to note is that any furniture supplied must comply with safety regulations and if it was to break you would have an obligation to provide a replacement for the tenant.

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i have been living abroad for some time and would like to rent out my property in the uk. what do i need to know about tax?

As an overseas landlord, your letting agent would be required to deduct tax from your rental income before sending it to you unless they have permission from HMRC to pay the rent to you in full. This tax would then be paid to HMRC quarterly and at the end of the tax year you would be provided with a certificate in order to complete a self-assessment tax return and prove how much tax you have paid. If you would prefer the rent to be paid in full so you could complete a tax return and pay any money owed directly, HMRC will provide your letting agent with an approval number once you have registered with them which they need to pay the rent to you in full.

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why do i need an inventory? it’s just walls and carpets, there is no furniture in the property.

An inventory is a list of all items in the property, the walls, flooring, fixtures & fittings are just as important as any furniture as these can still be damaged by the tenant. Once a tenancy has come to an end we conduct an inspection based on the original inventory to establish whether the tenant has caused any damage above fair wear and tear in order to recover any costs to rectify the issues from their deposit.

If you have a question big or small email marplelettings@julianwadden.co.uk with the Subject Ask Jonathan, looking forward to hearing from you.

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