Tag Archives: asia
Research reveals high number of sellers who end up paying inheritance tax
One in four properties sold in England and Wales in 2015 were above the inheritance tax limit and the number sold for more than £325,000 have doubled since 2009, new research shows. Proportions were even higher in some locations, for example, 94% of properties sold in East Central London were over the inheritance tax nil-rate band, says the research from Saga Investment Services. The research also found that just one in 10 individuals can correctly identify the IHT threshold for a single person, and a mere 4% for married couples and civil partners. Just 10% correctly said £325,000, some 21% thought it was higher and 19% said it was lower, while 50% didn’t know. The report points out that new ‘main residence’ allowance to be introduced in April 2017 will benefit home owners. Overall the number of properties sold at prices above the £325,000 starting point has doubled over the past six years from 13% of properties in 2009 to 24% in 2015, according to the study which analysed six years’ worth of property sales data published by the Land Registry. Despite the number of property sales in 2015 decreasing by 3.7% compared to 2014, sales exceeding £325,000 have soared by 11.4% over the same period. A breakdown of the figures show that after East Central London the next location with the highest number of property sales over the IHT threshold is West London with 90%, then South West London at 88%, the West End of London at 86% and North West London at 83%. But outside of central London, the proportion of properties sold above £325,000 has also been rising sharply. Some 28% of postcode areas have seen the number of property sales exceeding the IHT threshold double in the past six years, including Brighton, Bromley, Bristol, Cambridge, Colchester, Croydon, Durham, Northampton, Norwich, Portsmouth, Stevenage, Tweed, Uxbridge and Watford. For married couples and civil partners, any unused IHT allowance can be passed on to the surviving partner, meaning the total that can currently be handed over without a potential tax bill could be £650,000. Across England and Wales, the number of properties sold above this level has doubled since 2009, from 2.4% to 5.5%. There are 17 postcode areas in which one in every 10 properties sold in 2015 exceeded £650,000, compared to seven in 2009. In 2015 some 60% of all properties sold in the EC postcode area exceeded £650,000, up from 14% in 2009, while 56% of property sales in West End, 53% in West London and 44% of sales in South West London. The research also shows that just 4% of over 50s living in London correctly identified the IHT threshold for married couples and civil partners and 17% believed there was currently no maximum, while 20% thought the threshold was lower. On 06 April 2017 a new IHT allowance will be introduced for people passing on their main home to a direct descendant. This will rise each… Continue reading
Research reveals lack of formal tenancy agreements in UK for residential property
One in 10 private landlords in the UK has no formal tenancy agreement in place with their tenants, new research has found. And where contracts are in place, landlords may unwittingly be asking tenants to sign documents that are not legally compliant, according to the survey by landlord insurance provider Direct Line for Business. Of the landlords who don’t use a letting agent some 58% used adapted tenancy agreements from either old agent contracts or other landlords or an updated template they found online at 38% and 20% respectively. It appears landlords employ letting agents when they first rent out the property, then use the old contract template when agreeing a direct rental with new tenants or upon renewal with their existing tenants. The study suggests that a lack of professionally reviewed tenancy agreements may explain why 13% of landlords have experienced disputes specifically arising from tenants’ rental contracts in the last two years. Also concerning, it says, is that 9% of landlords have not informed their tenants that their deposit is held in a government backed tenancy deposit protection scheme (TDP). This is despite the fact it’s a legal requirement that landlords provide the name and contact details of the tenancy deposit protection scheme (TDP) and its dispute resolution service within 30 days of taking a deposit. The research also revealed that 4% of landlords have not taken any deposit from their tenants. ‘Tenants and landlords need a contract in place to protect both their interests. Contracts, deposits and deposit protection all help to make clear what is expected from each party when renting a property, and which can help minimise disputes where possible,’ said Nick Breton, head of Direct Line for Business. ‘If an old contract is adapted it may not comply with new legislation or be relevant for the current market. Given the volume of disputes arising from tenancy agreements it’s important to get the contract seen by a legal professional before it’s signed,’ he explained. ‘We understand that getting legal documents in place can be complicated which is why we’ve launched our new Legal Documents Service for landlords. Not only can this save landlords time and money, but creating the documents is both quick and easy, and most importantly, they can be reviewed by a Solicitors Regulation Authority (SRA) regulated law firm to ensure they are legally compliant. Based on our research of solicitor prices, it is estimated each landlord using the service would save over £250,’ he added. When it comes to rights and protection, 38% of landlords in England have never heard of the government’s How to rent: the checklist for renting in England, which explains the rights and responsibilities of landlords and tenants while less than a third of landlords have supplied or directed tenants to this guide. Direct Line for Business has launched a… Continue reading
Heating and double glazing top list of UK home buyers must haves
Central heating and double glazing top UK homebuyers’ list of must have property features followed by a garden and secure doors and windows, according to new research. House hunters opt for a good, reliable broadband signal over highly rated schools, off road parking over a garage and a living room big enough for a large flat screen telly over period features. Indeed, the research from comparison website Gocompare, found that only 15% rated access to good local schools an essential factor in buying a new home and buyers are looking for homes with a bath, separate shower, multiple toilets and en-suite bathrooms. However, it is warmth and energy efficiency that are key priorities for house hunters. Some 79% said that central heating is their top must have feature and 74% said it was double glazing. A good energy efficiency rating and cavity wall insulation are also highly rated features, mentioned by 53%. Some 71% said a garden, 70% secure windows and doors, 58% off road parking and 57% a bath. Local shops and amenities were important to 55% and 54% said friendly neighbours was their top priority. A good reliable broadband connection was mentioned by 53%, while 50% said a landline telephone and 49% a good TV connection while 47% want a second shower and 45% at least two toilets. However, only 16% thought an open fireplace or wood burner were a home essential and just 7% favoured period features. Only 15% of those surveyed said access to good local schools was an essential factor in buying a new home. ‘From our research it’s clear that today’s potential homebuyers are putting practical concerns ahead of aesthetics. They are looking for warm, cosy properties, which are energy efficient and well connected to modern amenities rather than ones that are full of character,’ said Gocompare’s mortgages spokesperson Matt Sanders. He pointed out that as the on-going costs of running a home including paying the mortgage, utility bills and council tax are a real concern, it is perhaps unsurprising then well insulated homes and efficient central heating systems are key priorities. ‘The survey also highlights the important role technology and in-home entertainment plays in our day to day lives, from streaming live TV and films to our reliance on mobile phones. For many people, access to both a strong internet connection and a reliable mobile phone service have become modern home essentials,’ he added. Continue reading
