Pathfinder to Success

Millennia Properties Pathfinder to Success with HMO and property trading

Working with our team of mentors 1-2-1 basis is certainly one of the most effective ways of either starting to get your portfolio off the ground or, as an experienced investor, growing your existing portfolio and making a lot more from the portfolio that you already have.

Our consultants who have bought and sold over 100 properties and have secured option deals totalling more than £6 million are available to work with you now and have a number of ways of teaching you what you need from a price that suits you:

Base Camp	£199
Have a 90-minute conference call via phone or Web with Matthew Moody where he will work with you to create a strategic high-level plan that will take you forwards.
K2	£750
Spend a part day with Millennia and our team where we will assess your current situation and advise any changes that may be required before setting new goals with you, creating a viable business strategy for you to leave with.
Everest	£1500
Join Matthew and Kenny for a mind blowing day that will maximise your property investment strategy. Going beyond simple planning to incorporate financial property management with our Accounts team, splitting HMOs and much, much more.

 

My main portfolio company (Millenia Property) has been managing properties for years and due to recent staff hires, we are now expanding our services further in:

• Northamptonshire
• Derbyshire
• Cambridgeshire
• North Bedfordshire

I asked our Portfolio Director to put together a few words on why you should consider us for your letting needs and you can read what she has to say below.

If you are interested in our management services, then please contact me for a quick no obligation quote on what we can do for you.

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We are experts in HMO property management.

Why not let us manage your property and give yourself a break!

Do you find your rental properties time consuming to manage?

Do you find dealing with tenant issues a large weight on your shoulders?

Won’t it be great just to be paid from your property with none of the hassle?

Well help is at hand, we can do all this for you!

Millenia Property has years of experience renting property and is an expert in the HMO field and have a lot of experience with single lets.

We will offer a service second to none for you and your tenants.

We offer a full property management or lead generation service.

The full property management service covers everything from dressing rooms ready for new tenants to taking action when there are rent arrears or other discrepancies.

Why not hand all the hassle over to us and just take the profit?

Alternatively why not use our lead generation service.

Our skilled and very experienced team will advertise you property and daily search our numerous advertisers for leads matching your specifications.

Our managers will qualify these leads to ensure they match the specification provided by you.

You cannot go wrong with this amazing offer; why not treat yourself early this Christmas?

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Client Testimonial

Matthew from Millenia Management has been managing my properties for a couple of years now. Before Matthew came on board my property business had become a second job, and I had little time for my family or myself. Now I have more time at my disposal as Matthew and his team provide a brilliant service, always ready to go the extra mile in taking care of my business. My rental voids have gone down, and the rent is paid on time ! I would highly recommend Millenia Management if you are looking for a team that will look after your property and your tenants giving you peace of mind and freedom !

Sunita Koshal, Northampton

I’ll hand it other to Arthur to tell you more:

If you own a HMO, you may be able to take advantage of Capital Allowances Tax relief, to mitigate your previous and current year’s tax liability.

Whether you are an armchair property investor, entrepreneur, or own just 1 HMO property, you could mitigate your current liability, and also get a refund from HMRC for previously paid tax!

Capital Allowances – what are they?

Plant & Machinery Capital Allowances, relate to the tax relief associated with certain qualifying items within the communal areas of HMO properties.

Having recently come into the limelight do to a technical clarification by HMRC, these allowances are an extremely valuable tax relief. You can reclaim tax paid up to 5 years previously.

Once these items have been identified, valued and documented, you can reclaim previously paid Income tax, reduce your current year income tax liability, or roll forward the allowances until such time when they are required, depending on how long you have owned the property.

There is no time restriction on claiming – a property you have owned for 10 years, can qualify!

Capital Allowances provide a deduction for tax purposes in lieu of the depreciation charged in the accounts on Capital Expenditure. They are of direct relevance to every legal entity, operating in the UK with the exception of those that are tax exempt.

Capital Allowances tax relief has been around, in one form or another, since 1878. These are widely used by the commercial sector and are also available to individuals who own qualifying properties.  Capital Allowances cover a number of tax relief strategies including Plant & Machinery Allowances Relief.

Plant & Machinery Allowances Relief

Plant and machinery for HMO’s includes:-

• heating and air-conditioning
• lifts
• wiring to fixed plant
• switchgear
• emergency lighting
• fire alarm installations
• sanitary fittings
• hot water installation
• carpets and removable floor coverings
• fittings and furniture
• demountable partitioning used for trade flexibility
• fire fighting equipment
• mechanical door closers
• security equipment
• telecommunications installations
• trade and information signs
• vehicle control equipment
• window cleaning equipment and assets used to create ‘atmosphere’ or ‘ambiance’ in a hotel, restaurant or public house.

This list is by no means exhaustive but provides a guide to the plant & machinery most commonly found in buildings.

In addition, expenditure incurred on certain other assets including fire safety, thermal insulation and building alterations incidental to the installation of plant and machinery may also be eligible.

The rate of relief varies from 100% in the year of purchase (AIA / FYA), to 10% (WDA).

Other allowances are available, but these are largely restricted for companies and are not largely applicable to HMO owners.

Who Can Claim?

• Must  be a UK Tax Payer (Either Income tax, or Corporation tax)
• Must incur the capital expenditure.
• Must be ‘qualifying’ items of expenditure or ‘qualifying’ buildings.

What Can Be Claimed?

• Development of property
• Fit out works
• Refurbishment or alteration works to existing property
• Purchase of property

How much can be saved?

Typically, between 15% and 25% of the purchase price of a HMO property will qualify for Plant & Machinery Capital Allowances Tax relief.

Purchase Price                                   Capital Allowances available (tax free income)

£100,000                                                           £20,000

£120,000                                                           £24,000

£140,000                                                           £28,000

£160,000                                                           £32,000

£180,000                                                           £36,000

£200,000                                                           £40,000

£250,000                                                           £50,000

£300,000                                                           £60,000

£350,000                                                           £70,000

n.b. – these allowances are averages, based on previous work undertaken, your property may attract more, or less capital allowances. Your claim is based on purchase price, qualifying expenditure, and the total communal areas of the property. This is a guide only.

For further information or to arrange a survey on YOUR HMO properties, you can contact Arthur below.

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Normally most of the mail I get about HMO’s is negative and so I thought that I would share this piece with you and let the Badger make his point.

http://www.thebadgeronline.co.uk/comment/war-against-the-hmos/#comment-2339

Coming out next week, the next vLOG – can’t wait to share with you all the news.

If you haven’t signed up for my 10-part ecourse, then go across to the top right and sign up right now.  Its a no-nonsense 10-part course to get you started with building your own HMO business – and I get loads of positive comments about it.

Well, actually hang on a minute.  They aren’t illegal – they are just NOT licenced yet…

So, what happens to your HMO once you’ve put in for your licence?

Well according to UK HMO regulations (which may differ from Scottish law), as long as you are following the guidelines set down by the licencing authority and they haven’t condemned you (which can happen!), then you are fine to carry on operating.

So, whilst its a good story for the press; in reality, what choice does a council have in terms of meeting their obligations to house homeless people.

Read the shocking HMO story for more details but just ensure that you have your licence in – and I think that the onus is then on the council to process it.  I’ve been waiting nearly 2 years for one council to process my application

Now whilst this is fine when they are living in a licenced and regulated HMO, what happens when they live in an unlicenced potentially overcrowded HMO?

Two things spring to my mind – potential issues with language barrier/culture together with lack of understanding of their RIGHTS and thus potentially taking a tenancy up in an unsafe house.

This has particular issues for health and fire safety in HMO’s.  A recent article I read went into detail on the typical issues faced and what the local councils and fire services are doing to try and combat it.

So what can we as HMO landlords do about this?

Firstly, we should educate any of our migrant worker tenants as to the correct workings of any fire safety systems

Secondly, we should provide guidance or access to native speakers/written materials so that they can understand the issues in more detail.

Thirdly, we should provide excellence in accomodation which by its very nature should alleviate many of the issues that migrant workers face in finding accomodation in the UK.