{"id":7079,"date":"2016-04-28T14:14:39","date_gmt":"2016-04-28T14:14:39","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=7079"},"modified":"2018-02-16T09:25:14","modified_gmt":"2018-02-16T09:25:14","slug":"tax-and-mortgage-changes-put-accidental-landlords-most-at-risk","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/tax-and-mortgage-changes-put-accidental-landlords-most-at-risk\/","title":{"rendered":"Tax and Mortgage Changes Put &#8216;Accidental Landlords&#8217; Most at Risk"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p><b>According to research, accidental <a class=\"wl-entity-page-link\" title=\"Landlord\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/landlord\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/landlord;http:\/\/rdf.freebase.com\/ns\/m.02mx_6;http:\/\/dbpedia.org\/resource\/Landlord\" >landlords<\/a> are the least likely of all new <\/b><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/accidental-landlords-could-be-affected-by-new-legislation\/6599\/\"><b>buy to let mortgage<\/b><\/a><b> applicants to be aware of recent tax and mortgage changes which could put them at a financial disadvantage in coming years.<\/b><\/p>\n<p>The findings come from Direct Line for Business who found that accidental landlords &#8211; those who are <a class=\"wl-entity-page-link\" title=\"rental\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/renting\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/renting;http:\/\/rdf.freebase.com\/ns\/m.01y857;http:\/\/dbpedia.org\/resource\/Renting\" >renting<\/a> out a <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >property<\/a> which they have inherited or are unable to sell for example &#8211; did not know about the changes to a landlord\u2019s mortgage tax relief.<\/p>\n<p>Apparently, 71% of these landlords claimed not to know that from April next year, they will not be able to deduct from their tax bill their mortgage interest payments but will instead get a tax credit equivalent of 20% basic <a class=\"wl-entity-page-link\" title=\"rates\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/rates-tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/rates_tax;http:\/\/rdf.freebase.com\/ns\/m.03hnzm;http:\/\/yago-knowledge.org\/resource\/Rates_(tax);http:\/\/dbpedia.org\/resource\/Rates_(tax)\" >rate<\/a> tax \u2013 regardless of whether they are a higher rate tax payer.<\/p>\n<p>Accidental landlords also scored poorly when questioned about the stamp duty hike which sees buyers of <a class=\"wl-entity-page-link\" title=\"buy-to-let\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/buy-to-let\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/buy_to_let;http:\/\/rdf.freebase.com\/ns\/m.083ycg;http:\/\/dbpedia.org\/resource\/Buy_to_let\" >buy to let<\/a> properties and second <a class=\"wl-entity-page-link\" title=\"Home\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >homes<\/a> being charged an extra 3%.<\/p>\n<p>Applicants for buy to let <a class=\"wl-entity-page-link\" title=\"Point (mortgage)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/point-mortgage\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/point_mortgage;http:\/\/rdf.freebase.com\/ns\/m.08w1xt;http:\/\/dbpedia.org\/resource\/Point_(mortgage)\" >mortgages<\/a><\/p>\n<p>In addition, around two thirds of applicants for <a href=\"https:\/\/www.thehouseshop.com\/mortgages\" title=\"Buy To Let Mortgages\">buy to let mortgages<\/a> had no idea of the EU&#8217;s <a class=\"wl-entity-page-link\" title=\"Mortgage loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/mortgage-loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan;http:\/\/rdf.freebase.com\/ns\/m.0273t5w;http:\/\/dbpedia.org\/resource\/Mortgage_loan\" >Mortgage<\/a> Credit Directive impact on their application.<\/p>\n<p>The directive is aimed at tightening up on mortgage lending criteria with accidental landlords being most at risk, even if they already own one or two <a class=\"wl-entity-page-link\" title=\"Private rented sector\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/private-rented-sector\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/private_rented_sector;http:\/\/rdf.freebase.com\/ns\/m.09f3dq;http:\/\/dbpedia.org\/resource\/Private_rented_sector\" >private rented<\/a> properties, because they may be unable to pass the new affordability tests.<\/p>\n<p>The head of Direct Line for Business, Nick Breton, said: \u201cWe would encourage mortgage applicants to think carefully about the new EU legislation and the Government\u2019s buy to let taxation increases and how this could impact them as landlords.<\/p>\n<p>\u201cIt&#8217;s important that landlords are able to maintain property to <a class=\"wl-entity-page-link\" title=\"houses\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/house\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/house;http:\/\/rdf.freebase.com\/ns\/m.03jm5;http:\/\/dbpedia.org\/resource\/House\" >house<\/a> people looking for a temporary stay in a city or town as well as young people who are saving up for their first home.\u201d<\/p>\n<p>Tips for landlords<\/p>\n<p>Direct Line for Business has also issued some tips for landlords and they include:<\/p>\n<ul>\n<li><b>Getting the best insurance cover<\/b> &#8211; landlords can be covered for building and contents and landlord\u2019s insurance which will cover them for loss of rent<\/li>\n<li><b>Finding <a class=\"wl-entity-page-link\" title=\"Leasehold estate\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/leasehold-estate\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/leasehold_estate;http:\/\/rdf.freebase.com\/ns\/m.03jg1x;http:\/\/dbpedia.org\/resource\/Leasehold_estate\" >tenants<\/a> for less<\/b> &#8211; if the landlord has the time, they can save money by finding and managing their tenants rather than having a <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/letting-agent\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/letting_agent;http:\/\/rdf.freebase.com\/ns\/m.02qpgdf;http:\/\/yago-knowledge.org\/resource\/Letting_agent;http:\/\/dbpedia.org\/resource\/Letting_agent\" >letting agent<\/a> charging between 10% and 15% of the monthly rent<\/li>\n<li><b>Maximise existing tax benefits<\/b> &#8211; maintenance costs are tax-deductible as are arrangement and broker fees<\/li>\n<li><b>Be aware of legislation<\/b> &#8211; landlords should strive to keep abreast of legislation that affects them and review regularly whether their investment property is <a class=\"wl-entity-page-link\" title=\"Affordable housing\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/affordable-housing\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/affordable_housing;http:\/\/rdf.freebase.com\/ns\/m.09jvc1;http:\/\/dbpedia.org\/resource\/Affordable_housing\" >affordable<\/a> not just in the short-<a class=\"wl-entity-page-link\" title=\"Contractual term\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/contractual-term\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/contractual_term;http:\/\/yago-knowledge.org\/resource\/Contractual_term;http:\/\/rdf.freebase.com\/ns\/m.02rfhkx;http:\/\/dbpedia.org\/resource\/Contractual_term\" >term<\/a> but also in the medium and long-term.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>According to research, accidental landlords are the least likely of all new buy to let mortgage applicants to be aware of recent tax and mortgage changes which could put them at a financial disadvantage in coming years. The findings come<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/tax-and-mortgage-changes-put-accidental-landlords-most-at-risk\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":7080,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[17],"tags":[48,67,55,53,107,84,373,238,83,295,327,502,125,92,51,111,204,298,271,20,30,59,413,392],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2016\/04\/hand-101003_640.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/tax_and_mortgage_changes_put_accidental_landlords_most_at_risk","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/7079"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=7079"}],"version-history":[{"count":3,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/7079\/revisions"}],"predecessor-version":[{"id":14697,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/7079\/revisions\/14697"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/7080"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=7079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=7079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=7079"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=7079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}