• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Moving and BTL at the same time

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Moving and BTL at the same time

    So we are looking to move house at the moment, and I would also like to start on the BTL ladder, thinking about doing the following:

    Using the equity in the current house to put a deposit on our next house. Move into the next house, while getting a BTL mortgage on current house and then letting it out.

    Anyone done this? Thoughts?
    Politicians are wonderfull people, as long as they stay away from things they don't understand, like working for a living!

    #2
    Yup i've done it.

    Make sure that the price you can rent the current place for more than covers your new BTL mortgage (assume 10-15% of the rental income will go to agents).

    Make sure you put enough stuff in the property to classify it as furnished, you can then take 10% of the rental income without paying tax on it to pay for upkeep to the property (just chuck it in a savings account if you don't need to do any upkeep at first).

    Bear in mind that you can only pay the interest part of your mortgage with the rental money though, the rest counts as income. My advice would be get an interest only mortgage on the rental property and put any money you make into the mortgage on your new house. This will reduce the mortgage on your new house and keep your income low on the rental property to reduce your tax bill.

    Comment


      #3
      Originally posted by Ardesco
      Yup i've done it.

      Make sure that the price you can rent the current place for more than covers your new BTL mortgage (assume 10-15% of the rental income will go to agents).

      Make sure you put enough stuff in the property to classify it as furnished, you can then take 10% of the rental income without paying tax on it to pay for upkeep to the property (just chuck it in a savings account if you don't need to do any upkeep at first).

      Bear in mind that you can only pay the interest part of your mortgage with the rental money though, the rest counts as income. My advice would be get an interest only mortgage on the rental property and put any money you make into the mortgage on your new house. This will reduce the mortgage on your new house and keep your income low on the rental property to reduce your tax bill.

      yup done it, and I'd ecco the above 100%
      SA says;
      Well you looked so stylish I thought you batted for the other camp - thats like the ultimate compliment!

      I couldn't imagine you ever having a hair out of place!

      n5gooner is awarded +5 Xeno Geek Points.
      (whatever these are)

      Comment


        #4
        Originally posted by n5gooner
        yup done it, and I'd ecco the above 100%
        oh and about to do it again!!!
        SA says;
        Well you looked so stylish I thought you batted for the other camp - thats like the ultimate compliment!

        I couldn't imagine you ever having a hair out of place!

        n5gooner is awarded +5 Xeno Geek Points.
        (whatever these are)

        Comment


          #5
          Originally posted by Ardesco
          Make sure that the price you can rent the current place for more than covers your new BTL mortgage (assume 10-15% of the rental income will go to agents).
          Impossible in the current market, even on intrest only
          The court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.

          But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”

          Comment


            #6
            Originally posted by portseven
            Anyone done this? Thoughts?
            Depends where you think the housing market is headed !? I'm just buying a new pad and I've decided to sell both my current house and a property I just inherited. It's BOOMING round my way, a good time to offload IMHO.

            Comment


              #7
              Originally posted by portseven
              So we are looking to move house at the moment, and I would also like to start on the BTL ladder, thinking about doing the following:

              Using the equity in the current house to put a deposit on our next house. Move into the next house, while getting a BTL mortgage on current house and then letting it out.

              Anyone done this? Thoughts?
              Don't get a BTL mortgage unless you have to. Ask current lender for permission to let.

              Comment


                #8
                Originally posted by Bagpuss
                Impossible in the current market, even on intrest only
                All depends where you property is, how much you can rent it out for and how much is left on the existing mortgage on it.

                I got myself a nice BTL 5 year deal at just over 5% with Abbey about 9 months ago when I did it and my rental income covers the mortgage easily, all because of the location of my flat.

                Comment


                  #9
                  Originally posted by Ardesco
                  All depends where you property is, how much you can rent it out for and how much is left on the existing mortgage on it.

                  I got myself a nice BTL 5 year deal at just over 5% with Abbey about 9 months ago when I did it and my rental income covers the mortgage easily, all because of the location of my flat.
                  9 months ago though, have a look around and see what there is now, IMHO the boat has gone.
                  The court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.

                  But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”

                  Comment


                    #10
                    Originally posted by Bagpuss
                    9 months ago though, have a look around and see what there is now, IMHO the boat has gone.
                    Let me say it again:

                    All depends where you property is, how much you can rent it out for and how much is left on the existing mortgage on it.

                    For all you know he may only have a £10,000 mortgage left on the property. Buying a new house and converting your existing property into a BTL is the way to go IMHO as you have already made a dent in the mortgage which means you can survive on a lower rental value.

                    Comment

                    Working...
                    X