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Increasing value of property

Tips and advice on how to use Landlord Vision.
macleanpro
Posts: 2
Joined: Fri May 01, 2020 3:21 pm

Increasing value of property

Postby macleanpro » Sat Oct 17, 2020 6:35 pm

I have a property that we purchased for £62500 and had a mortgage of £50000. We recently did some work on the place which now means it is valued at £95,000. We remortgaged the property and released £21,250 from the property.

I am trying to work out how to reflect this. I have :

- Recorded the mortgages against fixed assets
- Recorded a property expense for the deposit and assigned the payment to fixed assets
- Updated the value of the property within the property record
- Closed the old mortgage and opened a new mortgage with an equity release of £21250 - These have been posted to fixed assets.

How do I:
- reflect the £21,250 being paid to me whilst still keeping it assigned to fixed assets too? Would this be other income?
- Reflect the additional equity not released against fixed assets?

roy
Posts: 46
Joined: Tue Aug 23, 2016 11:38 am
Location: United Kingdom

Re: Increasing value of property

Postby roy » Mon Oct 19, 2020 1:31 pm

Hello

To show the payment to yourself, you need to record a journal going from the Fixed Assets account to your bank account. To do this, go to Account Manager > Journals > Add Journal

Account | Debit | Credit
Fixed Assets | 21250 | 0
Bank | 0 | 21250

This will reduce the amount in Fixed Assets because some of it has been freed up and released back into your bank account. The remaining amount will stay in the Fixed Assets account

Kind regards
Roy


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