Buy-to-let landlords will be concerned about what the future holds for their letting income, their tenants and property values. Measures that effect you regarding the impact of the COVID-19 are highlighted below.
A ‘payment holiday’ means you agree with your lender that you will not have to make mortgage payments for a set amount of time. Payment holidays are designed to help you when you may experience payment difficulties – in this case because of the coronavirus situation.
You should contact your lender if you are experiencing or reasonably expect to experience payment difficulties because of circumstances related to coronavirus.
Will interest be charged on your mortgage?
You will still be charged interest during the payment holiday, unless your lender has told you otherwise.
Who is eligible?
Residential and buy-to-let mortgages are eligible.
What happens if your tenants cannot pay their rent?
If tenants in either social or private accommodation are struggling to pay their rent due to coronavirus they can speak to their landlord about a payment holiday for up to three months. However, landlords are not required to stop charging rent.
Can a tenant be evicted for not paying their rent?
No one can be evicted from their home or repossessed during the next three months.
What happens after the three months?
At the end of this period, landlords and tenants will be expected to work together to establish an affordable repayment plan, considering tenants’ individual circumstances.
Deferral of Self-Assessment payment
The Payment on account payable no later than 31 July 2020 will be deferred until 31 January 2021. This is an automatic offer and no application is required and no penalties or interest for late payment will be charged in the deferral period.
Time to pay arrangement with HMRC
All businesses and self-employed people in financial distress, and with outstanding tax liabilities, may be eligible to receive support with their tax affairs through HMRC’s time to pay service. You can contact HMRC’s dedicated helpline 0800 024 1222.
Would you like to know more?
Please feel free to get in touch via phone, email or our quick contact form.
We offer initial free consultations simply contact us to find out more.