Leasehold Concerns

Government Leashold Selling Concerns for New Homebuyers

First of all, there are Government leasehold concerns for homebuyers which shows that ground rents have increased.

According to the website The Negotiator, the follwing research was carried out:

“Research by the NAEA earlier this year suggested that 62% of leasehold house owners in the UK felt they had been mis-sold their properties.”

As a result, the Government is looking to stop the sale of unfairly sold leasehold houses.

This is following the recent scandal of over the 100,000 home owners who were found trapped in agreements that:

  • charged high ground rents
  • enforced unfair conditions
Leasehold Concerns
Leasehold Concerns

Government Leasehold Concerns Amount

The Government have collected data on leasehold properties in the UK.

The statistics show that there are approximately 4.2 million leashold properties in England.

Furthermore, out of those 4.2 million leashold properties, approximately 2.9 million of them are flats.

Several leasehold homeowners are facing increasing ground rents.

The Government have made reports of such claims and plan to act in the Landlord’s defence.

Typically, Freeholders make alterations to the properties by using ground rent fees.

However, the escalating ground rents are not helping leasehold owners to sell their properties.

Waiting for Government Change

In the meantime, Landlords can take action while waiting for Government change.

The process of implementing an act/law can usually take some time.

How long does it take? Visit the UK Parliament website for more details.

What are the options while you wait?

Options

If the option to sell your property is not currently available, renting your property is an option.

As a result, do your research to find the best possible solution to cover amounting costs.

An option that we offer at Metropolitan and Crown Estate Agent Ltd is the Guaranteed Rent Scheme.

It is an option that can offer “peace of mind” with a consecutive rental payment while you sort out your finances.

Head on over to our main website to find out more about our Guaranteed Rent Scheme.

Landlord Tax Breaks

Landlord Tax Breaks for Longer Tenancies

First of all, the Government may announce landlord tax breaks for longer tenancies.

The Conservative “think tank” known as Onward has shared this information.

Furthermore, the Government proposed idea, which is coming from Downing Street, derives from the following:

According to the Letting Agent Today website;

“Landlords would not have to pay capital gains tax when selling to tenants who have lived in a property for three years or more.”

As a result, the Government has proposed an incentive for Landlords offering this option and condiering other options too.

Landlord Tax Breaks
Government May Announce Landlord Tax Breaks

Tax Breaks May Be Considered

The UK Government must be seriously considering these tax breaks for Landlords.

Therefore, as talks continue, the Government have written a consultation document called;

“Overcoming the Barriers to Longer Tenancies in the Private Rented Sector”

The consultation document may be worth reading if you are a Landlord, as a law may apply in the future.

Reason for Landlord Tax Breaks

The Government proposed a number of options to promote the three year tenancy model.

The Reason;

The demand for longer tenancies from the growing number older people and families in the private rental property market.

One of the options the Government has proposed a financial incentive that could quicken the implementation process.

This could be an option rather than a mandatory 3 year tenancy agreement.

Nothing is yet conclusive, but the UK Government will continue to discuss this matter as they welcome suggestions.

Conclusion of Landlord Tax Breaks

In conclusion, the Government have considered Landlord tax breaks for those who considered longer tenancies (3 years).

Furthermore, there are financial incentive options that may also appeal to exisiting Landlords.

There is an article written back in March 2018 that discussed a Housing Crisis for first time buyers.

As a result, there could be a correlation between foreign property investors and any incentives or tax breaks considered by the UK Government.

As a Landlord, it is always important to stay informed and do your research.

We will continue to offer property related information to those interested in the property market.