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Buy to let
Within
this page you will find information on:
>
UK Resident
and Non Resident Landlords
> Non-Resident
Landlords
> Tenancy
Deposit Scheme for Regulated Agents
Buying a high yield investment property to let can be
a very different process to buying a home. Your choice
of location is probably the most important factor, with
the size, age and condition of the property following
close behind.
Making
the right choice could make the difference between a
straightforward, successful let, and a disappointing
venture in the property world.
It
is important that any acquisition meets criteria that
will make it;
a)
easy and quick to let (location & condition)
b)
easily and cost effectively maintained
c)
easily resold (subject to market conditions)
d)
Mortgageable
Our
close relationship with our residential sales department
allows us to ensure that clients looking to invest in
property are given professional and efficient service
to guide you all the way through the process of buying
the right property.
We
can provide you with:
- Full
assessment of your requirements
- Property
search to find a shortlist of investment properties
- Rental
appraisal and recommendations
- Yield
information on all short listed properties
- Communication
with your solicitor, accountant and lender
- Comprehensive
letting and management service
- Specialized
tenanted property insurance
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Income
Tax - UK Resident and Non Resident Landlords
Income
tax is payable on rental income irrespective of where
you live. Landlords must declare this income on a Self-Assessment
Tax Return and if one is not issued automatically he
or she has a legal responsibility to notify the Inland
Revenue of any liability. As the Inland Revenue assesses
your income individually, properties that are jointly
owned require returns to be completed by each legal
owner. There is a requirement under Self-Assessment
to keep adequate records to ensure that the calculations
included in the return are accurate.
Deductible
Expenses
Through careful planning we can help to reduce your
liability. Examples of deductible expenses that could
be used to reduce taxable profit derived from property
income include the following: -
- Insurance,
ground rent, repairs & maintenance
- Letting
agents fees
-
'Wear & tear' allowance for furnished properties
- Loan
interest (MIRAS was abolished on 6 April 2000
- Legal
and accountancy charges
- Unused
'personal allowances' (applied by IR)
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Non-Resident
Landlords (Landlords whose usual place of abode is outside
the UK)
The
legislation regulating Non-Resident Landlords and their
agents differ significantly from Landlords residing
in the UK. Myddelton & Major as the rent receiving agent,
has a statutory obligation to deduct basic rate tax
on the net income and make payments to the Inland Revenue
quarterly. However, you can apply to the Inland Revenue
to "self-assess" your own tax.To
take advantage of this please visit www.inlandrevenue.gov.uk
or ask for an application form in the office.
Services
For Non-Resident landlords
- Provision
of the necessary information and application forms
regarding the Non-Resident landlord scheme.
- For
overseas landlords that have not applied /received
"approval" Myddelton & Major must account to the Inland
Revenue on a quarterly basis.
- A
certificate will be issued to you by the 5th July
as evidence if any tax has been paid to the Inland
Revenue on your behalf.
- Myddelton
& Major are obliged to provide an annual return of
information to the Inland Revenue for all non-resident
landlords.
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The
Tenancy Deposit Scheme for Regulated Agents
What
is the tenancy deposit scheme?
Many
tenants in the private sector give their landlords a
deposit against possible non payment of rent or damage
to the property. When a tenancy comes to an end, there
is usually no disagreement about the return of the deposit.
But sometimes there is, and this can cause much hardship
and inconvenience to both the landlord and the tenant.
The
tenancy deposit scheme for regulated agents (TDSRA)
has been developed to ensure that the deposits they
hold are protected and that disputes about their return
are resolved swiftly, inexpensively and impartially.
How
does it work?
The deposit will be held by the agent
Where
there is no dispute at the end of the tenancy, the agent
will, as normal, pay out the deposit promptly.
If
either the landlord or the tenant wants to challenge
the proposed apportionment of the deposit, they must
tell the agent within 20 working days. The agent must
try to negotiate a settlement between the parties within
10 working days.
If
this cant be done, any of the parties can refer the
dispute to the Independent Case Examiner (ICE) for expert,
third party independent adjudication.
The
agent will transfer the deposit to the dispute service.
It administers an Assurance Fund, which enables the
ICE to carry on with an to pay out the deposit even
if the agent has not sent it to him.
The
ICE, operating like an Ombudsman, will make his decision
within 10 working days of receiving all the necessary
information. The deposit will be paid out within a further
5 working days.
What
is a regulated agent?
Regulated agents are:
Members
of an approved body which regulate the activities
of its members in the private rented sector; and
Covered
by a recognized bonding scheme that protects and insures
money they are holding on behalf of landlords and
tenants.
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