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Buy to let help for a fist timer

(9 Posts)
totalrecall1 Wed 27-Apr-16 14:09:47

I want to invest in a buy to let especially due to the fact that the pension rules have changed. The situation is that I am a high rate tax payer, but my husband doesn't work. I am unsure what to do. The best option would probably be for my husband to get the mortgage and then the income comes in his name so we pay less tax, but will he get a buy to let mortgage. Alternatively I can either take the money out of the main property and give to him so he buys out right - but then he can't claim any expenses against his tax because I am paying them? Alternatively I take out the mortgage and claim the minimum tax relief, but then surely we lose out because we haven't taken advantage of his tax free allowance. Any help would be gratefully received.

TAPSHOES Wed 27-Apr-16 18:56:52

Hiya, I'm a property investor for a living and source for clients too.

You can take the property out in either of your names then put a deed of trust in place to state your husband gets the income

Your husband can get a buy to let mortgage without an income but you would need to go through a broker

Defo wouldn't buy out right as you could potentially use you money to put two deposits down for two buy to let mortgages rather than have it stuck in one.

Good luck

Ebayaholic Wed 27-Apr-16 19:17:47

Ask a broker to find you a joint mortgage sole proprietor mortgage where there are two of you on the mortgage but only one on the deeds.

googlepoodle Thu 28-Apr-16 03:14:35

Hi Tapshoes what are you advising people about the new tax changes that are coming in over the next few years. We have slowed down our buy to let's because of this.

TAPSHOES Thu 28-Apr-16 10:18:54

Hiya,

I think the market is due a dip with the Brexit vote bringing uncertainty- foxtons shares for example continue to fall and the price of Gold is rising which shows economic uncertainty. This could bring us opportunity if the market plummets to buy.

In terms of preparing for the Tax changes where we are unfairly taxed on turnover rather than profit. Certainly look into moving properties into a Limited company. If not get ready for rent hikes across the board. Most landlords will increase their rents to offset the increase in tax.

A similar policy was adopted in Ireland and rents went up around 50% GO is a silly man if he thinks the same won't happen here. The system in Ireland was abolished.

All changing strategy to buy and sell (flip) is also a strong consideration.

Hope that helps

totalrecall1 Fri 29-Apr-16 09:15:31

Really helpful. Thanks so much

IceMaiden73 Sun 01-May-16 15:21:00

Moving property into a limited company could be costly and it's much harder to borrow money through a limited company

You need to be aware of the new tax rules before you make a decision as your tax bills will go up once the new rules come in

totalrecall1 Sun 01-May-16 21:09:07

Hi Ice. Yes I know, thats why I was confused as to what to do. I get a rebate on the interest (understand that will go down), but he pays no tax. I think the best thing is that I take out the mortgage take the interest off my tax bill but put deed of trust in place so hubby gets the income.

totalrecall1 Sun 01-May-16 21:09:35

Will need to get an accountant though to check that is all OK!!

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