"mothballing" a house
Discussion
I have a house that we dont live in that I was thinking of renting out. However the rental value is pretty small, I'd have to pay tax on the profits from the rental and I'd have the potential agrovation of tennants/damage etc.
So I'm now thinking of "mothballing" it, leaving a couple of dusk-to-dawn lights inside and turning into frost protection mode - its a combi boiler and we have no pipes in the loft etc. to worry about anyway.
So other than the obvious potential for scroats and squatters, what else do I need to consider for doing this?
It is only on the other side of town so would be easy to check on it every week or so.
I could just sell it but for the sake of very little effort, I may as well hang on to it and sell when the value has increased a bit.
So I'm now thinking of "mothballing" it, leaving a couple of dusk-to-dawn lights inside and turning into frost protection mode - its a combi boiler and we have no pipes in the loft etc. to worry about anyway.
So other than the obvious potential for scroats and squatters, what else do I need to consider for doing this?
It is only on the other side of town so would be easy to check on it every week or so.
I could just sell it but for the sake of very little effort, I may as well hang on to it and sell when the value has increased a bit.
Depends on your concil tax rules. Medway council will only allow 6 months free for an empty house, after that you have to start paying.
There reasoning is that empty houses bring areas down, attract kids, etc... and they are trying to get you by using more stick than carrot technique to rent it out so there will be less of a homeless problem in the area.
Complete b011ocks if you ask me, but you may want to look into your local council tax rules. Same with water, gas, electric, etc... I think if a house is on a water meter there is a standing charge.
There reasoning is that empty houses bring areas down, attract kids, etc... and they are trying to get you by using more stick than carrot technique to rent it out so there will be less of a homeless problem in the area.
Complete b011ocks if you ask me, but you may want to look into your local council tax rules. Same with water, gas, electric, etc... I think if a house is on a water meter there is a standing charge.
Very much depends who owns the house, whether just OP or OP and Partner. If the latter, and the Partner is not in employment, then the rental income could just be put in the Partner’s name, thereby reducing the tax payable.
There are also CG & Inheritance Tax issues that should/could be looked at, particularly if property only in OP’s name.
Lastly, after 6 months a reduce Council Tax payments become payable, and Insurance cover is very hard to get for an empty property, so better to rent the property out, rather than leave the same empty.
There are also CG & Inheritance Tax issues that should/could be looked at, particularly if property only in OP’s name.
Lastly, after 6 months a reduce Council Tax payments become payable, and Insurance cover is very hard to get for an empty property, so better to rent the property out, rather than leave the same empty.
Wings said:
Very much depends who owns the house, whether just OP or OP and Partner. If the latter, and the Partner is not in employment, then the rental income could just be put in the Partner’s name, thereby reducing the tax payable.
There are also CG & Inheritance Tax issues that should/could be looked at, particularly if property only in OP’s name.
Lastly, after 6 months a reduce Council Tax payments become payable, and Insurance cover is very hard to get for an empty property, so better to rent the property out, rather than leave the same empty.
Insurance was a bit of a worry to be honest - most policies tend to state that the property cannot be unocupied for more than 60 consecutive days.There are also CG & Inheritance Tax issues that should/could be looked at, particularly if property only in OP’s name.
Lastly, after 6 months a reduce Council Tax payments become payable, and Insurance cover is very hard to get for an empty property, so better to rent the property out, rather than leave the same empty.
I can't understand why you wouldn't let it out.
If you get good tennants, and to find out how good they are you check their references thoroughly, it's really quite easy. OK if something goes wrong you have to have it fixed, but it's free money.
You only pay tax on the rent minus all fees and mortgagte interest so it's really a no brainer.
Otherwise as mentioned above, you cough for the council tax, your insurance isn't valid, you risk squatters etc.
really, go for the let
If you get good tennants, and to find out how good they are you check their references thoroughly, it's really quite easy. OK if something goes wrong you have to have it fixed, but it's free money.
You only pay tax on the rent minus all fees and mortgagte interest so it's really a no brainer.
Otherwise as mentioned above, you cough for the council tax, your insurance isn't valid, you risk squatters etc.
really, go for the let
I can't understand why you wouldn't let it out.
If you get good tennants, and to find out how good they are you check their references thoroughly, it's really quite easy. OK if something goes wrong you have to have it fixed, but it's free money.
You only pay tax on the rent minus all fees and mortgagte interest so it's really a no brainer.
Otherwise as mentioned above, you cough for the council tax, your insurance isn't valid, you risk squatters etc.
really, go for the let
If you get good tennants, and to find out how good they are you check their references thoroughly, it's really quite easy. OK if something goes wrong you have to have it fixed, but it's free money.
You only pay tax on the rent minus all fees and mortgagte interest so it's really a no brainer.
Otherwise as mentioned above, you cough for the council tax, your insurance isn't valid, you risk squatters etc.
really, go for the let
allgonepetetong said:
I can't understand why you wouldn't let it out.
If you get good tennants, and to find out how good they are you check their references thoroughly, it's really quite easy. OK if something goes wrong you have to have it fixed, but it's free money.
You only pay tax on the rent minus all fees and mortgagte interest so it's really a no brainer.
Otherwise as mentioned above, you cough for the council tax, your insurance isn't valid, you risk squatters etc.
really, go for the let
Its fine until you get the tennents like I had, cost us £2k to clear the garden, £4k of damage inside , they left owing money to all the utillitys and even took the carpets and light fittings when they left. It also cost us £2k in legal fees to get them out even though theu owd us over £4k in rent. We acted as soon as we saw a problem and this was the out come for us, I would leave it empty, at least you no what its going to cost you.....If you get good tennants, and to find out how good they are you check their references thoroughly, it's really quite easy. OK if something goes wrong you have to have it fixed, but it's free money.
You only pay tax on the rent minus all fees and mortgagte interest so it's really a no brainer.
Otherwise as mentioned above, you cough for the council tax, your insurance isn't valid, you risk squatters etc.
really, go for the let
Simpo Two said:
Do you know, I am going to have to break cover, flash my Spelling Police Badge 
and say this, under caution:
Tenants: people who rent a house
Tennants: a brand of lager
Tenons: a woodworking term, partner of mortice.
Right, move along
lol, my speeling is poor, but my maths be good. and say this, under caution:Tenants: people who rent a house
Tennants: a brand of lager
Tenons: a woodworking term, partner of mortice.
Right, move along
*- This has in fact been able to pay for the best educaton money can bye for my children......
An honorable draw!Goochie said:
Insurance was a bit of a worry to be honest - most policies tend to state that the property cannot be unocupied for more than 60 consecutive days.
If you go down the unoccupied route, contact a company called IntaSure - they're backed by Lloyds of London I believe, the only stipulation on my property (which is regularly left empty for 3-4 months at the moment) is that the heating must be maintained above 8 degrees celcius.I pay less for this than I was quoted for "normal" insurance by all of the major players.
Goochie said:
sherman said:
You may also want to set up a couple of dehumidifiers to stop damp setting in especially at this time of year.
Good thinking - I saw someone buying one in Homebase yesterday and thought "why on earth would you need one of those!?"...... now I know.
Worth doing.
I put one on the yacht over the winter, does the power of good to the interior, and is normally at least half-full by the new year so they certainly work.
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