Buying second property - next door

[flumpybear]

Hi - any thoughts from you lovely lot!? My neighbour is very elderly and in hospital - he'll probably not be around too much longer according to the family which is a shame but he's had a full life and is very old.

We're considering buying the property next door where he lives once he's gone (sounds awful ... Please forgive me discussing that), or if indeed he goes into a home

Is there anything we need to know about buying a neighbouring home!?

Also what's the financial issues!? I know things have recently changed.

I'm off to research but wondered if anyone here can flag anything I should consider

We'll do it up and rent it out by the way and probably tidy up the borders as its not fit for purpose st the moment with strange access rights on certain bits of each properties pathways and gardens etc

Thanks

Will you have to get a mortgage?
You can no longer offset the mortgage interest against your tax bill, so if the rent is £500 a month, and the mortgage is £400 a month, you'll need to expect to pay tax on all of the £500 (not just the £100 difference, which used to the case)

There is also a stamp duty premium to pay on a second property. If you have a DP and are married, you count as one for the purposes of this, so you can't put one house in one name and the new in the other to get around it unless you aren't married.

You also have to consider if you can manage the occasional conflicting interests of neighbour and landlord. Do you want your tenants complaining to you about your noise, and will you want to kick tenants out if they are bad neighbours but good tenants?

No way would i have a rental next door unless a holiday let. Stressful for the tenants and a nightmare for you if you get trouble. Remember eviction takes months, imagine living next to a destructive non - payer and being able to do nothing. At least i cant see what is happening .

Thanks guys! It's more about the boundaries and getting them fixed - we're happy to do up and sell but not sure if there are extra taxes if we sell so fast? Really need to research !!