Your landlords are starting to experience the financial impact of recent tax changes, which makes it a perfect time to review their portfolios to ensure they are in good shape.
We are approaching the time when landlords are going to start to feel the impact of tax changes in their pocket. Tax returns for 2017-2018 are being submitted ahead of the end of January deadline and these will be the first to include the staggered removal of mortgage interest tax relief on rental income. Consequently, many of those returns will result in a larger than expected bill for some of your clients.
These tax changes have been talked about for some time now, but this is the first time your clients will experience the financial cost first hand. As such, it’s an excellent opportunity for you to make contact with your landlord clients to review their circumstance and ensure their portfolios are in good shape to offset their increased tax burden. Could they benefit from moving property into a limited company structure or remortgaging onto a new rate? There are some excellent deals around at the moment and 5-year fixed rates in particular are very competitive.
If you don’t have the time to review the options for your landlord clients, you could have a conversation with Brightstar about referring the cases for a share of the proc fee, leaving you free to focus on other areas of your business.
Don’t forget that on 1 October, the government extended mandatory licensing for HMOs to include all HMOs that are occupied by five or more people from two or more households.
As part of this mandatory licencing, the government has also introduced minimum room size for bedrooms in licenced HMOs. Rooms used for sleeping by 1 person over 10 will have to be no smaller than 6.51 square metres, and those slept in by 2 people over 10 will have to be no smaller than 10.22 square metres. Rooms slept in by children of 10 years and younger will have to be no smaller than 4.64 square metres. Any part of the room which the height of the ceiling is less than 1.5 metres cannot be included in the floor area of that room.
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READ MORE OF THIS MONTH’S EZINE CONTENT:
LATER LIFE LENDING
SECOND CHARGE MORTGAGES
SHORT TERM FINANCE
FOR INTERMEDIARIES ONLY AND NOT INTENDED FOR THE GENERAL PUBLIC