Renting out your home? | Mortgages | Help & support | YBS
Renting out your home?
Here's some things you need to know
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
You have to let us know if you're letting your property
Already renting out your home or thinking about it? If you are renting out your home or are thinking about doing so you need to apply for our Consent to Let. You must not proceed with letting out your property without first obtaining the Society’s written consent. Read ourLettings Information Factsheet for more information. In order for the Society to provide Consent to Let, you would need to complete anApplication to let mortgaged property form which would ensure you had agreed to the following conditions of letting:
A Tenancy Agreement being in place – you must ensure that only an Assured Shorthold Tenancy is created (England & Wales) or a Private Residential Tenancy (Scotland).
Relevant Statutory Notice(s) (where required) being served on the tenants.
Please return your completed form to : Lettings Team Yorkshire Building Society Yorkshire House Bradford BD5 8LJ
The Government has made some changes to taxation affecting landlords
Whether you are an existing or first time landlord you need to be aware of a number of recent tax changes impacting landlords. You should consider seeking expert advice from a tax expert or accountant.
The following information is provided purely as a guide and is not to be taken as financial or tax advice.
Many landlords will be aware of the uplift in Stamp Duty Land Tax on buy-to-let and second homes, but fewer may be ready for the changes to tax relief that were introduced in April 2017. While landlords won’t see the impact until they get their tax bill in 2019, it would be prudent not to be complacent, and landlords should assess their portfolio as soon as possible in order to keep their investments sustainable.
What are the changes?
Stamp Duty Land Tax (SDLT)
The government announced that from April 2016 higher rates of SDLT would apply to second property purchases. Landlords looking to purchase an additional property, where they already own either a residential property or a buy-to-let property, are now liable to higher rates of SDLT.
The table below details the rates currently applicable:
Energy Efficiency Ratings
As from the 1st April 2018 it is a requirement for any properties rented out by a private landlord to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC).
The Energy efficiency regulations apply to any new let and whenever tenancies are renewed after 1st April 2018 and for all existing tenancies on 1st April 2020.
It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless an exemption as set out in the regulations applies. The following link provides additional useful information.