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This poor woman just has to accept that S24 has done for her.
First off she should by whatever means redeem her residential mortgage.
This will mean selling some of her BTL properates.
Then take in lodgers at her now unencumbered home.
Then move into each BTL before selling it in a tax year to maximise CGT and lettings relief.
If it is too far to be at her new PPR no problem.
Just take in lodgers and visit the PPR twice per month as a minimum.
Meanwhile she spends a lot of time back at her now unencumbered property with some lodgers.
After a year she sells the PPR BTL.
And moves onto the next BTL.
The only issue is that the BTL lender may catch wind of her residing in a BTL property which is breach of mortgage conditions.
When ER details are changed which would invariably need to be done to convince HMRC of the quality of occupation to achieve PPR status the lenders are usually notified by the CRA
Then there is the issue of changing address for almost legal notices.
The former PPR could still be used but that must surely lessen the quality of the new occupation at the BTL PPR.
Rock and a hard place is the analign I would use for this poor woman.
But she needs to sell off or become unencumbered.
In her position I would eventually sell off everything and buy 2 big houses and take in lodgers.
I would spend a minimum of 2 days at each property per month.
My lodgers would pay no more in total per property than £7500 per year.
There is no possibility that if the lodgers paid more that those payments would be detected.
Thankfully cash still exists and can be very useful in certain circumstances! !!!
This is the only way this poor woman will beat Osborne.
She may still have some unencumbered Rental property as well
But the lodger route with 3 lodgers at each of her 2 residential properties could bring in at £600 pcm per room about £46000 tax free if she chooses just to declared one lot of £7500
LL will have little choice than to evade lodger income tax if they hope to retain their former BTL income.
S24 wi be changing many LL into lodger income tax evaders.
They have little choice as S24 has forced them into an impossible position.
I predict 4 bedroom properties will become much in demand from former LL!!!!!!!!
The simple solution is to sell some of the properties, pay the CGT and reduce the mortgages on the others. Many landlords are in a similar position, it’s where we are and there is a need to accept it - what is it you say - learn, change, adapt - she has completed the first one and now for change and adapt.
I think this situation is a harsh treatment
I think she may sell or try the Landlord Shuffle as I have done
My own thoughts on this is her Customers ?????
We invest out energy in building and investment and It can be easy to forget your also giving someone a home
This policy of Osborne Law will do so much harm
But we can then say we told you so
Learn Change and Adapt ?????
There comes a time when the changes have to be accepted and move on, She is in a very fortunate position, £50k salary, final salary pension scheme, able to sell some properties and keep some with no or small mortgages. Many people - landlords and tenants will envy her position, does she really have anything to complain about?
I think her issue is she will go out of business
and don't think she will be the only one
It would be interesting to know the percentage of working Landlords we have who have leverage
On a side point this women knew nothing about S24 till the last week
She only found out via a friend in the hairdressers and her friend is one of my Tenants
Even her accountant has not told her the score
This is going to explode and cause a great deal of Harm as I have said to the property world in the uk
I cant see any sense in Osborne Law in the way it has been done
She doesn’t need to go out of business only scale her BTL business back, with nine properties and no knowledge of S24, she should be taking a more active interest in being a landlord.
"The simple solution is to sell some of the properties, pay the CGT and reduce the mortgages on the others. Many landlords are in a similar position, it’s where we are and there is a need to accept it - what is it you say - learn, change, adapt - she has completed the first one and now for change and adapt."
So ineffect......sell ur properties just to stay in the property game / working ??
I said sell some of the properties and reduce the mortgages on the others, the same as if interest rates increased and rent didn’t cover expenses.
This woman is clearly not unintelligent but as EssexLL rightly states she should have paid more attention to her role of LL. .
It is for such reasons that I have always paid attention to the Budget.
To understand what it means.
That was where I became aware of S24.
Followed up and confirmed by the many informative posts on PT.
Perhaps if LL engaged with useful websites like PT rather than waste time on FB they might learn something.
If this supposedly clever LL has only just discovered what S24 is it just defies belief as to her idiocy.
For most of us LL anoraks who like to keep abreast of issues that might affect our business we have bored each other stupid discussing S24.
I would suggest that it is far more preferable to be the proverbial anorak than finding out about crucial issues that might affect your business from the hairdresser! !!!!!!!!!!!!!!
If this is the level of understanding among mamy LL then perhaps a PT email to all the hairdressers in the UK
Raise the issue of S24 with your LL clients
Perhaps then more LL might become aware of how they might be sleepwalking slowly into bankruptcy if they do not
She is only the Tip of the iceberg
Most Landlords still don't understand S24
she pays an Accountant and even they have not updated her
She has managing agents and again no info
This is a ghost Tax it will creep up and bite Landlords
especially working Landlords who believe they have an armchair investment