Property let. interest claim.

[eek]

I dont have an accountant.

my recollection from the old schedule a regime is that the mortgage at the start of letting is the limiting factor. But im not certain and have not beej abpe to find anything definite.

You really should find someone and get advice then. HMRC are starting to like amateur landlords, they are easy targets with assets that can be liquidated to enforce payment.

[ASB]

You really should find someone and get advice then. HMRC are starting to like amateur landlords, they are easy targets with assets that can be liquidated to enforce payment.

Well then, its a good job that the income will be appropriately declared and the tax paid.

cant imagine what gave you the idea I am planning to hide anything from hmrc.

[eek]

Well then, its a good job that the income will be appropriately declared and the tax paid.

cant imagine what gave you the idea I am planning to hide anything from hmrc.

Um, because you seem happy to breach the terms of your mortgage agreement.....

But apart from that willingness to defraud your mortgage provider, yep its a bit unfair to assume that someone willing to break the law in some way is willing to break the law in other ways..

[jamesbrown]

It also worth bearing in mind that, if you are caught defrauding your mortgage co., this could materially impact your chances of getting a mortgage in future (and possibly have other implications). In my understanding, this info. would be available to other providers. There may be a lot of people doing this in practice, but it isn't without risks.... personally, I'd check with the mortgage co about consent to let and, if they don't provide it, go with a BTL elsewhere - as you said yourself the outstanding mortgage amount is small, so the difference in interest payments should be small too.

[ASB]

Um, because you seem happy to breach the terms of your mortgage agreement.....

But apart from that willingness to defraud your mortgage provider, yep its a bit unfair to assume that someone willing to break the law in some way is willing to break the law in other ways..

Fair comment. Though what I have in fact done is intimated I might.

I have now reviewed the mortgage deed and bizarrely it is completely silent on letting.

in any event breaching the conditions, if I do so, is not fraud. It is a civil matter. There is specific contractural redress for acting outwith the terms. It is not a breach.

[ASB]

It also worth bearing in mind that, if you are caught defrauding your mortgage co., this could materially impact your chances of getting a mortgage in future (and possibly have other implications). In my understanding, this info. would be available to other providers. There may be a lot of people doing this in practice, but it isn't without risks.... personally, I'd check with the mortgage co about consent to let and, if they don't provide it, go with a BTL elsewhere - as you said yourself the outstanding mortgage amount is small, so the difference in interest payments should be small too.

In those circumstances I would be inclined to simply pay it off anyway. Best btl rates are approx 2 times what im paying. But I do have quite a large line of credit at 1.4% on a different property. I could use this, pay off the mortgage and also claim the interest since the funds are being used in the property business.

this gives a complication though. This raise would be with my partner. That may have a silver lining though. If we became tenants in common on the property I currently own outright. Which would need me to execute a deed of trust then the income is legitimately split. She then pays @ 20 on her share and me at 40.

May be worth exploring.

[northernladuk]

Just burn it down and claim on the insurances. Much simpler.

[Scrag Meister]

Lenders crack down on 'accidental' landlords

Although saying that there are millions of people asking what they should do. Can't find any evidence of the worst case happening.

I don't think you will have any problems with a consent to let. Might cost you about 120 quid though.

I am in the process of letting my house in Devon, and the mortgage provider doesn't give consent to let except if I transition to a BTL mortgage with the relevant 3% rate increase.

Only planning to have the mortgage on that place for a further 18 months or so, therefore not a big deal in the long term, just a little frustrating over the next few months.

[northernladuk]

I am in the process of letting my house in Devon, and the mortgage provider doesn't give consent to let except if I transition to a BTL mortgage with the relevant 3% rate increase.

Only planning to have the mortgage on that place for a further 18 months or so, therefore not a big deal in the long term, just a little frustrating over the next few months.

Blimey. That bites. They all hint that there would be a change to a BTL rate but I have had consent for 3 properties over a longish time. Halifax just said OK, B&M asked me to fill a form in and said OK and RBS charged me 100 quid or so and said ok. Not one of them batted an eye or suggest a move to a BTL rate. Must have fallen unlucky with your choice of provider. V frustrating as you say.

[ASB]

Blimey. That bites. They all hint that there would be a change to a BTL rate but I have had consent for 3 properties over a longish time. Halifax just said OK, B&M asked me to fill a form in and said OK and RBS charged me 100 quid or so and said ok. Not one of them batted an eye or suggest a move to a BTL rate. Must have fallen unlucky with your choice of provider. V frustrating as you say.

Nope, SM is not unlucky. That is about the reality - certainly for anything over about 12 months intended let. 3% is about the top end of the loading from what I have read.

Like you my previous forays pre crunch were not problem at all. Can;t recall ever paying anything.