M2RTY
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Registered: 25th May 01
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House i live in now i dont have a mortgage on, did have for a couple of years but now paid off (technically i can withdraw the money still up to £70k and just start paying the interest on it again)
Anyways, now wanting to buy another house with my lass and rent this one out, but will i be taxed on the full amount (i,e profit) as theres no mortgage on it? Would I be best taking say £50k out of it (leaving (£20k in readily available cash and £30k equity) to get around this?
I dont really want to close the account as id own the house 100%, but would habve to pay to set up another mortgage elsewhere if i needed to release some funds from the house. Proper headache!
Putting 20% down on next house (18-20k each) which we hope to have saved this year, so looking to ideally get it all sorted in 2012
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ed
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Registered: 10th Sep 03
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I'd buy it in cash. If you don't have the cash you can't afford it.
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Daniel_Corsa
Premium Member
Registered: 21st Apr 04
Location: Wigton, Cumbria
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Why dont you want to close the account and own the house 100%
Just put your £18k-£20k savings with missus towards next house and mortgage it!
April '06' Corsasport Feature Car  | Aug '08' Total Vauxhall Feature Car | Spring '09' Fast Car Feature Car
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M2RTY
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Registered: 25th May 01
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quote:
Originally posted by Daniel_Corsa
Why dont you want to close the account and own the house 100%
Just put your £18k-£20k savings with missus towards next house and mortgage it!
because leaving the account open costs nothing, and i have the money available in a few clicks if i ever needed it
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VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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You could consider a remo on your current prop to a BTL mortgage with say a 50% deposit. It will cost next to nothing and you'll have a load of deposit to get a decent rate on a resi mortgage for your main property.
Don't forget the tax.
Corsa 2.0 16v Vegas - Sold
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Colin
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Registered: 4th Apr 02
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Yep 50% BTL, slightly bigger deposit for the next one & a Ferrari F355 spider for that lovely new garage 
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M2RTY
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Registered: 25th May 01
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20% deposit vs 30-40% deposit wasnt that bigger a change in rates on new house, will have to calculate how much tax will be paid on current house
it illegal to rent it out to a family member (great aunt) cash in hand lol, (or a slightly more legal way to do it to get around tax)
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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It's tricky really , in my opinion whatever you do your still going to have to find x amount . If you remortgage do you have enough equity to buy 2nd house in full. If not I would own half two houses. As you will need to change mortgage 1 to a buy to let . Also if your lass's names going on house 2 if you put mass load of equity in and it ever doesn't work out how would u feel if she took half .
I'd rent house one out and start a new mortgage with her . This keeps both houses totally separate and you been sole owner of house 1
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Dione J
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Registered: 22nd Sep 04
Location: West Midlands Drives: Leon Cupra Turbo
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quote:
Originally posted by baza31
It's tricky really , in my opinion whatever you do your still going to have to find x amount . If you remortgage do you have enough equity to buy 2nd house in full. If not I would own half two houses. As you will need to change mortgage 1 to a buy to let . Also if your lass's names going on house 2 if you put mass load of equity in and it ever doesn't work out how would u feel if she took half .
I'd rent house one out and start a new mortgage with her . This keeps both houses totally separate and you been sole owner of house 1
Sense
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M2RTY
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Registered: 25th May 01
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off to see the advisor i used last time to see what options he says, cheers
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M2RTY
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Registered: 25th May 01
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Went to look at a new 3 bed town house for 210k in darlington centre and a 4 bed on outskirts for 175k also new
Only 2 of us but the 4 bed isnt really a large house, plan was spot on though large use of space
Just need to get the ball rolling now...
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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Remember financial adviser isn't a life adviser and won't take into account what could happen if your relationship goes pear shape. Listen to my advice above , things change when breakups occur.
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Josh Ack
Premium Member
Registered: 13th Apr 10
Location: Great Ayton, North Yorkshire
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Where would the outskirts of Darlo be, I didnt think that Darlington would be as expensive as the outskirts to be honest..
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Toby
Premium Member
Registered: 29th Nov 05
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I'm currently thinking about the same sort of thing, pulling 20k out of my house when it remortgages and going halfs on a deposit for a second house. BTL deals are getting a lot better, it was only a year ago (when looking at options for my current house) and best I could get was 6% and 4k in fees.
In answer to the cash in hand, you could do it but it is tax evasion if you don't declare to HMRC which I'm sure you know will carry quite hefty consequences
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Liam-Wilko
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Registered: 6th Mar 08
Location: Sunderland, Tyne and Wear
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you can get cash in hand for Property provided you let HMRC know by using a self assesment witch depending on what profits/ losses you get you can set a DD up with HMRC to pay tax monthly at small amounts there is a lot of options for you if you ring them  we ant bad people mate lol if you want any more advice on tax u2u me and i can find out for you as i work for HMRC
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