When you sell a property, the figure that matters isn't just the sale price. It's what you've actually made once the costs of buying, improving and selling have been taken into account. That figure is your profit before tax, or your "gain". For most people selling their own home, there's no tax to pay on it. For second homes, inherited property and buy-to-lets, it's a different story. Here's a simple guide to how it works.
How your profit is worked out
The basic sum is straightforward. Start with the price you sell for, then take away:
What you paid for the property
Costs of buying it, such as solicitor's fees and Stamp Duty
Money spent improving it, such as an extension, loft conversion or new bathroom
Costs of selling it, such as Estate Agent and solicitor's fees
Autumn property maintenance: don't let small problems become big bills A blocked gutter in October can become a damp patch by January. A boiler that's been making odd noises can stop altogether on the coldest night of the year.
Autumn is the best time to get ahead of winter. A few simple checks now can save you money, keep your tenants warm and help avoid the call nobody wants in the middle of a cold snap.
Here's what to look at before the weather turns.
Start outside Gutters and downpipes. Once the leaves have dropped, gutters can quickly clog. When water can't drain away, it runs down the walls and can lead to damp inside. Have them cleared and check downpipes are flowing freely.
The roof. Look out for slipped or missing tiles and damaged flashing. A small repair now is far easier than dealing with a leak after a winter storm.
Drains. Make sure outside drains and gullies are clear of leaves and debris.
Fences, gates and outbuildings. Strong winds can finish off anything that's already loose. It's worth checking these are secure before winter.
For anything at height, always use a qualified tradesperson.
Halloween is the time of year for things that go bump in the night. When you are selling a home, though, the real worries are far more ordinary. Will the chain hold together? Is something missing from the paperwork? What will the survey say? Why has it all gone quiet?
These are the things that keep sellers awake. The good news is that most of them can be spotted early and managed calmly, with the right people on your side.
Chains
A chain is simply a line of linked sales, where each buyer is relying on selling their own home. The longer the chain, the more people there are who need to be ready at the same time. Chains are normal, and most complete successfully. What makes the difference is knowing who is in the chain, where each sale is up to and spotting a hold up before it becomes a problem.
Rent guarantee: could your rental income be protected? What would happen if your tenant stopped paying the rent?
For most landlords, it's not something they expect. Many tenants pay on time, month after month. But even reliable tenants can face a sudden change in circumstances, such as losing a job, a relationship ending or illness.
If your rental income helps cover a mortgage or other bills, even a few missed payments can quickly add up. That's where rent guarantee can help.
We are proud to share that director, Claire Kendall, was invited to take part in Golden Nuggets: Movers & Shakers, a new podcast series from Rightmove in partnership with Silvia Eldawi.
The series puts the spotlight on Estate Agents from across the UK, sharing the expertise, ideas and entrepreneurial thinking that are shaping the industry. Claire is one of just 10 agency leaders featured.
