Switching to long let for one year

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cooperman
Posts: 5
Joined: Sun Jul 30, 2017 9:40 am
Location: Arundel

Switching to long let for one year

Post by cooperman »

Dear follow owners, With the cost of heating my FHL in Arundel likely to go through the roof this winter I am considering switching to a residential let for 12 months from November. I have claimed capital allowances over the past 5 years I've owned the house and I wondering if I have to pay back the tax benefit I have had in balancing charges to HMRC. My plan would be to revert to holiday lets again once the energy crisis is over. Does anyone think I could avoid balancing charges in this scenario? Also I'm registered for business rates, not council tax so this would have to be changed too. I wondered if my local council would allow me to switch back easily after one year. Grateful for anyone's experience with these matter. Much appreciated. John
zebedee
Posts: 1270
Joined: Fri Sep 12, 2014 2:57 pm
Location: yorkshire dales

Re: Switching to long let for one year

Post by zebedee »

You may also need to consider that local authorities may be given powers to limit the numbers of FHLs in their area. This could affect your ability to switch back.

I don’t know how long this would take to become approved, but it is a realistic possibility under discussion at the moment.

Furthermore, there is a frown against issuing notice to quit to tenants when they have not done anything wrong. Some of the regulations have changed making this either harder or not possible, but I don’t keep myself so up to date on ASTs anymore.

Good luck with such difficult decision making.
Drax
Posts: 185
Joined: Thu Jul 21, 2016 4:36 pm
Location: Yorkshire Dales

Re: Switching to long let for one year

Post by Drax »

From my experience of letting property on a short term let, it is fraught with problems. The biggest one being what kind of a tenant you will have. There is no guarantee they will respect your property and could well damage it during their tenancy (this happened to us), leaving you with repairs costing a fortune to rectify and little or no chance of claiming the money back.
Also, they may refuse to leave at the end of their tenancy, which would involve expensive legal proceedings on your part to evict them.
As for the high energy costs that we are all facing, why don't you close your holiday let down during the winter months?
Keep your powder dry.
newtimber
Posts: 1945
Joined: Sat Nov 24, 2012 5:57 pm
Location: Brighton
Contact:

Re: Switching to long let for one year

Post by newtimber »

There is potential new legislation coming in that is getting rid of Section 21 notices so you won't be able to get the property back at the end of a year unless you want to sell...
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