With the recent announcement of 3% increases to the stamp duty rates payable on new buy to let purchases and second properties, landlords are going to have to pay a higher amount on stamp duty from this April. For example the tax bill on a buy to let worth £250,000 is currently £2,500, but from April this increases to £10,000.
Value of second Current stamp Stamp duty from Increase in
property duty 1st April 2016 Tax
£150,000 £500 £5,000 +£4,500
£250,000 £2,500 £10,000 +£7,500
£350,000 £7,500 £18,000 +10,500
£450,000 £12,500 £26,000 +£13,500
Landlords looking at the long term will realise buy to let is still the way to go for a good investment. Rents are still strong with void periods rare and recently, properties in the Merton area have been increasing in price.
Ellisons sales records show in the last 5 years properties (property prices) have increased by an average of 40%.
With this trend most likely to continue, the sound investor will know, that although the initial outlay to purchase is higher, with anticipated capital growth taken into account, the extra stamp duty will definitely be worth while!
For further advice on buy to let contact our lettings department on 0208 944 8626.
A large proportion of Ellison's Landlords currently reside overseas.
As nice as it is being away and forgetting about all the rain and cold here in London don’t forget about your responsibilities as a landlord!
• Is your property compliant with working Smoke alarms on each floor and Carbon monoxide Detectors; can you prove this? Alarms are now compulsory as of the 1st October 2015.
• Does your buildings insurance require regular property inspections? Ellisons do regular property inspections as part of the standard management service.
• Is your Gas Safety certificate valid? Don’t forget this needs to be done annually.
• Have you completed the NRL1 form? Tenants or Lettings Agents have a responsibility to deduct basic rate tax from any rent paid to non resident landlords. If you wish to receive gross rental income whilst you are non resident you should submit the form to HMRC and don’t forget to do your annual tax return.
• Are you aware of the right to rent act (immigration checks)? Landlords can be fined up to £3000 per occupier if they don’t have evidence of valid immigration status of their tenants.
Ellisons can let and manage your property and take care of all the above so that you can relax knowing your property is in safe hands and carry on enjoying the sunshine.
Call Jenny Narloch on 0208 944 8626 for more information.
Victorian and Edwardian properties in Wimbledon SW19 and Raynes Park SW20 generally have gardens extending up to 50-60'. An attractive garden can come in many forms, modern city style, country cottage or utilitarian with plenty of grass for the kids and a patio. Mixing a modern garden with a period house really works but what is most important is that it's clean and well kept!
Properties in Morden and Merton Park have larger gardens often extending to 100' or more. These gardens can be more expansive and even divided up into separate areas with a completely different feel to each zone.
Karl Martin, Manage of Ellisons Wimbledon branch states "Gardens can not only make a difference to a house selling quickly, but also achieving up to £20,000 more than a similar house!"
Get those gardening gloves on!