A modelling tool for regulated advisers. It recommends no product; the advice remains yours.
The home and every other property
The home, and further properties (a let, a holiday home, a commercial unit), each with its own owner or owners' shares, loan, rent, expenses and fixtures. Rents rise with their own index, and each property has its upkeep, lumpy repairs and flood risk.
Mortgages
- Fixed and variable rates; at the end of a fixed period the loan re-fixes with the same lender at the market rate, with a premium for a loan on a property that is not the home
- Switching lender, with a break fee and cashback
- Overpaying, as a lump sum or monthly, to shorten the term or lower the payment, within the fixed-rate allowance
Selling, moving and buying
- Each property kept, or sold at an age, every sale paying its CGT
- A move: sell and buy, let the home and buy, buy a home, or buy a property to let; never made in a future that cannot afford it
- A check that flags a move leaving too much of the household's wealth in property
- Help to Buy and its claw-back; stamp duty; the claw-back of rental relief on a sale within its period
A let sold as the last resort
When the bills cannot be paid, a let is put on the market and sold after a delay, under its value, the months in between bridged, and the household cuts back as it waits. A move if money runs short is the household's own option.
An example
Deirdre owns her home, a town let and a cottage that was partly her home, so rental income, the landlord relief and a pro-rated principal private residence relief all apply. The dashboard asks her Keep your other property, or sell it? and Stay in your home, or move to a smaller one?