General Discussion: Property thread


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joeyjojo
joeyjojo avatar

4615 posts since 24/8/06

21 Mar 2021 13:32
seenmy wrote: probably not, if you have a residential mortgage you can request permission to let after 6 months of having the mortgage, i think most lenders dont have an issue on this , though you could google your provider to see if its something they are ok with.

This is only for a set amount of time though right
seenmy
seenmy avatar

6654 posts since 17/6/06

21 Mar 2021 13:41
im not sure on that, i guess it would somewhat depend on how long your mortgage deal is 1/2/3/5 year etc long term I would imagine you need to go to buy to let if thats your use of the property
themistake
themistake avatar

10837 posts since 20/2/06

21 Mar 2021 13:43
jacko198 wrote: Well, thats that then! There are a fair few estate agents near me so plenty to choose from.

I think doing the maths, as I used the 20% Help To Buy to buy our flat, to get upto the 25% deposit for a Buy to Let mortgage would wipe us out so much that we would basically have no deposit to use for our new place and the income from the BTL would only give us £200 odd a month extra towards it. Seems like a massive ball ache for not much short term gain.


You can let out your HTB flat as long as you get permission from your mortgage lender.
The requirements from HTB is that you are moving away for work.
pops
pops avatar

4258 posts since 2/9/09

posted 21 Mar 2021 14:08, edited 21 Mar 2021 14:08
Rented my house out for almost 2 years with no issues when I bought (was a standard mortgage ) and didn’t seek permission from the lender. Didn’t risk not declaring on my tax return though (there’s a specific question included ) so got walloped with a lumpy tax bill which you’ll have to take into consideration as well
seenmy
seenmy avatar

6654 posts since 17/6/06

21 Mar 2021 14:18
if your on over 50k you dont get to deduct interest on mortgage so you get charged the full rent income at your tax rate (would be 40%)
Razorlight123
Razorlight123 avatar

4969 posts since 13/1/10

posted 21 Mar 2021 15:13, edited 21 Mar 2021 15:13
[Delete]

Better to ask such within a specific platform.
Rirawin
Rirawin avatar

9537 posts since 17/7/05

21 Mar 2021 15:47
seenmy wrote: if your on over 50k you dont get to deduct interest on mortgage so you get charged the full rent income at your tax rate (would be 40%)

Can you get around this by having the rent paid into a relatives account… Say one that’s retired?
chinaski
chinaski avatar

354 posts since 15/7/10

21 Mar 2021 15:58
Yeah my mortgage is a HTB one, I know it's not legally allowed just wondering if it's likely they'd find out

eazypz
eazypz avatar

3359 posts since 16/4/10

21 Mar 2021 16:11
Rirawin wrote:
seenmy wrote: if your on over 50k you dont get to deduct interest on mortgage so you get charged the full rent income at your tax rate (would be 40%)

Can you get around this by having the rent paid into a relatives account… Say one that’s retired?


Yes, but it could effect their pension I think
seenmy
seenmy avatar

6654 posts since 17/6/06

21 Mar 2021 17:47
im not sure you can, same as you can't pay the rent in to ltd company unless the company owns the property, id assume tax man would be on to you if relative was giving cash back to you or paying the mortgage.
themistake
themistake avatar

10837 posts since 20/2/06

21 Mar 2021 19:27
Surely if you are renting out your property in a not for profit way, you’d be able to claim enough expenses on the property to have a zero tax bill?
Dee
Dee avatar

12019 posts since 22/11/07

21 Mar 2021 19:55
As far as I can tell it's more difficult these days, that's why I thought there may be an angle with the tax relief in renting rooms out rather than the whole property.
Ulster_Blue
Ulster_Blue avatar

5556 posts since 16/7/06

posted 21 Mar 2021 20:46, edited 21 Mar 2021 20:46
Rirawin wrote:
seenmy wrote: if your on over 50k you dont get to deduct interest on mortgage so you get charged the full rent income at your tax rate (would be 40%)

No; if the property is in your name and your mortgage, you need to pay the tax on it. What you’re suggesting is basically tax fraud
Kadafi39
Kadafi39 avatar

1985 posts since 30/10/09

23 Mar 2021 15:44
eazypz wrote:
Rirawin wrote:
seenmy wrote: if your on over 50k you dont get to deduct interest on mortgage so you get charged the full rent income at your tax rate (would be 40%)

Can you get around this by having the rent paid into a relatives account… Say one that’s retired?


Yes, but it could effect their pension I think

Definitely not mate, otherwise everyone would just get rent paid in to their retired parents/grandparents account or their child's account!

If the property is owned by one person but another person collects the rental income HMRC would definitely investigate. Though on the whole they are generally useless and it might be 10+ years before they realise.
But no its not legal or a grey area, as ulster says above it is literally tax evasion.
Hello World
Hello World avatar

12170 posts since 7/3/05

2 Apr 2021 13:41
Exchanged Tuesday, should complete by the end of month waiting for SDW.

6/7 months of stress but going to be worth it.
seenmy
seenmy avatar

6654 posts since 17/6/06

2 Apr 2021 15:22
moved in to new place yesterday, 6 months of stress over, now on to likely 2 years of stress renovating
Razorlight123
Razorlight123 avatar

4969 posts since 13/1/10

2 Apr 2021 15:59
I've completed the mortgage aspect now - just instructing the solicitors to start their side.

Sounds like I'm going to be looking at another 2 months before exchange…
pops
pops avatar

4258 posts since 2/9/09

2 Apr 2021 16:07
seenmy wrote: moved in to new place yesterday, 6 months of stress over, now on to likely 2 years of stress renovating

Congrats Seenmy. Another doer upper then ?!
seenmy
seenmy avatar

6654 posts since 17/6/06

2 Apr 2021 16:23
yeah another bigger renovation project grade2 listed Georgian town house
swede
swede avatar

9825 posts since 21/3/09

2 Apr 2021 16:48
Cool