A landlord’s guide to coronavirus: your questions answered

Linda J. Dodson

Cat Westerling, of estate agency Hamptons, said landlords could be classified as self-employed but it would depend on the level of involvement they have with their properties. 

“In addition to fully managing all letting, maintenance and compliance matters a self-employed landlord would likely need to be operating multiple properties, perhaps actively looking to acquire more and generating enough income from this for it to be considered a business or trade,” she said. In this case they may be eligible for a grant. 

What other forms of financial support are available for landlords? 

Buy-to-let owners who are struggling financially but unable to access a grant could ease the pressure by deferring the payment for their self-assessment tax return. Any tax due in July can be deferred until January 2021.

They could also make use of the scheme to put mortgage payments on hold for three months but could end up with a higher bill at the other end due to mounting interest.

Will taking a three-month mortgage holiday hurt your credit score?

The Financial Conduct Authority, the City regulator, has said it should not.

Experian, Equifax and TransUnion, the three major credit reference agencies, have said customers’ credit scores will be protected when they have an agreed payment holiday in place. Other credit agencies may have different policies. 

Does landlord insurance cover coronavirus? 

Some policies will pay out if tenants default on their rent. However many will only pay up once the tenant has been in arrears for a certain period of time and a notice has been served to regain possession of the property.

As the Government has said tenants failing to pay their rent cannot be evicted for at least three months, this could leave insured landlords facing delays with their claims, Ms Westerling said. 

Source Article

Next Post

Japan traffic volume short of government plea for 70% reduction

TOKYO — Human traffic volume in Nagoya and a key area of the city of Fukuoka decreased just by 40% on Monday, despite the government’s declaration of a nation-wide state of emergency last week. The Japanese government had called for business to take measures — such as encouraging teleworking — to reduce […]

You May Like