Really worried and looking to sell ASAP

Hi Matt,

The latest comments from the Law society on the possible interpretation of the new CGT/Income tax rules are yet to be confirmed as to who it affects and how in practice and how HMRC interpret it.

See the latest comments >> https://www.property118.com/capital-gains-on-btl-to-be-taxed-as-income/89928/

Although I appreciate this is only one possible attack added to the others, but if this is the final straw don't panic just yet.

Clearly without knowing the locations, values, rentals etc it is impossible to give an informed opinion.
However, based on what you have said, if your property rentals are beating break even and there is currently no substantial profit in the capital values, what can you possibly gain by selling.
Considered opinion firmly supports the view that in the medium to long term UK residential property prices will continue to rise at well above the rate of inflation.
Good Luck

I must admit I'm getting pretty much fed up with the continual 'landlord bashing' that is going on at the moment. I have a couple of properties with very long term good tenants - 6 years plus - who are very happy and who have made their homes in them and want to stay for many more years which I would have been happy with but for all the negativity around being a landlord. I'm very seriously considering selling up, taking the money and investing in funds/shares instead. I think it will be just as or more profitable and definitely a lot less hassle. A very big shame for all the fantastic tenants out there who will lose their long term homes and will have to take their luck at the back of an already very long queue at their local council offices for a house, and for those people that choose to rent in areas that they work in, on a shorter term basis but what can you do. There is only so much 'bashing' that landlords can take!

Reply to the comment left by "Helen James" at "26/08/2016 - 12:59":

Well said - it is only so much hate and negativity the landlords can take. Sometimes I feel as the LLs are worse than ISIS terrorists. They are called fighters and are part of a State. LLs are parasites and should be removed from the society / state.
I am not sure if I am really exaggerating...

Hopefully the hedge funds will start to seek us out as I would sell my 60 in a heartbeat! This is what happened in Florida when I was living there.....

After 15 years of placing mostly Dss tenants in good homes that most have been in since I started, I am done!

Wind has been knocked out of my sails and the thought of continuing in a business where I am not wanted is soul destroying.

I have created a monster and evicting 60 families and selling 60 flats is a daunting thought.

Please hedge fund, buy me out!

I get worried and nervous reading all these things, I am sure I am not the only one who dosnt fully understand these things, I have considered selling, but no I am in it for the long term. I see this negativity as the sxxt press getting their jollies from slagging landlords off this week, what else can they pick on at the moment and all the public who feel ripped off will obviously be on the side of people who like to bash us. We need to keep our nerve and see how things pan out, If Cameron and Osborne were still in charge I might feel differently. If it does happen that landlords like the chap above who wants to off load 60 properties, or many smaller landlords, like me, do so then the whole market will skew again, councils cannot deal with the homeless they have now, housing associations constantly juggle the tenants they have never mind all the new ones who will be knocking on the door. We need to stand firm, however Matt if your finances are so close to the edge then you should be getting advice from a good accountant and deciding what is best for you, dont forget the market is a cycle!

I have spent the last six months considering my exit strategy for 12 fully let properties, long term tenanted, yielding 6%. I am told that this is not enough yield (needs to be 8%+) which is unrealistic. I have researched sale to landlord, options, rent to buy schemes etc and there are only 2 routes I have been able to come up with: A sale to 'webuyanyhouse.com' style company at 20-30% discount from their estimate of market value resulting in a number that does not cover costs, or to evict tenants and sell with vacant possession. Sadly this seems to be the only way which results in many unhappy tenants unable to find alternative housing. I do hope property118 is able to aggressively follow up its plans to challenge this.

Matt hang on in their for the long term and make your pension plans (buy to let's) work for you, if you don't sell you don't need to worry about income tax on profits. Write a will and then leave you property's to you relatives or a cat sanctury..,your repayment BTL will pay its self off and you can start chipping away at the interest only one by make 10% overpayments without penelty. buy to let is Seen as a cottage industry, and you know what corporations/ government did to those, they ran them out of business. Corporations are a shadow cast over government who write policy, by lobbying and throwing money at their party in power... To have laws written that tilt the playing field in their direction. Big corporations have realised they do not have a foot in the door when it comes to the private rental sector, so why not drive all the small players out of town and take over the whole billion pound industry over.There will be about 5 large behemoths running the show as in every sector i.e Banking, retail, supermarkets, and so on, this is called competion, although they are all in stratigic alliance with one another ..This attack won't stop until the balance of power is firmly tilted into the property companies favour, It's class war at its best, taking from the working man and middle classes. If you don't sell you don't pay TAX.....

Thank you all for your comments. Taking on what Paul has said, maybe I need to change my game plan?

It was the intention to sell both propertities when at retirement age (I'm 39 now).

House prices have dropped in the north east and I have been hit with poor LTV rates making everything more difficult. One property owing 65k and the other 94k. Market values current would be roughly 67k and 115k respectively. They were 98k and 127k only 3 years ago! I guess that's the risk we all take. Rental income is £435 and £550.

I'm now considering to try and attack the capital as suggested, and even get the interest only property onto a repayment vehicle. I need to re-invest 2k to get the LTV below 80% for the interest only property which pains me as the valuation a while back would have covered this.

Upon retiring, hopefully both are paid off and the revenue streams will prop up my non existent pension. Both properties left to the children.

Obviously amongst all of this we need to absorb all the tax changes. I'm just below 40% and the wife is at 20% and works part time.

As probably with most, the new rules tips us into the 40% tax band, and if my calculations are correct, we make a loss in 2020.

To top it all off, repairs to one of the properties will be ~£2k for roof work and plastering and I've just renewed the boiler for the tenant, ready for the winter.

Who said owning property is easy......

Matt > "I want to sell to an investor with the tenants in place and at market value."

If my recent experience is anything to go by, that's a pipe dream. I've recently had 4 flats on the market in Bristol: 2 were vacant, and 2 were tenanted with 9+ year tenants in each.

The 2 vacant flats were sold to first time buyers within 2 weeks. Despite offering a 10% discount (off the just sold vacant flats' price) with tenants in situ, we were unable to sell the 2 tenanted flats after several months of trying. The best offer we had was an unacceptable 30% BMV from another landlord.

We had no choice but to evict the other tenants and sell with vacant possession. Both then sold quickly with vacant possession offered.

Like you I'd have thought that existing long term tenants were a benefit, but it seems other landlords don't think so, and either way, are unlikely to pay full market value for a rental.