Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • JohnnieD1
    • By JohnnieD1 20th Mar 17, 12:19 PM
    • 2Posts
    • 0Thanks
    JohnnieD1
    Buy to Let for Non Taxpayers
    • #1
    • 20th Mar 17, 12:19 PM
    Buy to Let for Non Taxpayers 20th Mar 17 at 12:19 PM
    Hi, I am currently researching into Buy to Let. As a non taxpayer (with capital for deposit and good level of income from my wife), is there any reason I would not put everything solely in my name? Is there a flaw in this?
Page 1
    • westernpromise
    • By westernpromise 20th Mar 17, 12:22 PM
    • 2,921 Posts
    • 3,461 Thanks
    westernpromise
    • #2
    • 20th Mar 17, 12:22 PM
    • #2
    • 20th Mar 17, 12:22 PM
    2 names = 2 allowances of everything.
    "I have a perfect credit score according to expedia"
    "Going to war without France is like going hunting without an accordion" - Norman Schwarzkopf
    "My life is one of daily joy and happiness and excitement " - Venger, HPC
    "Why do the English always laugh when Aberdeen is mentioned?" A. G. MacDonell
    • kingstreet
    • By kingstreet 20th Mar 17, 12:26 PM
    • 31,620 Posts
    • 16,891 Thanks
    kingstreet
    • #3
    • 20th Mar 17, 12:26 PM
    • #3
    • 20th Mar 17, 12:26 PM
    No income = no mortgage.

    Since the PRA changes in January, a personal affordability check is carried out on all BTL applications even when the rental income calculation determines the borrowing level.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • theartfullodger
    • By theartfullodger 20th Mar 17, 12:41 PM
    • 8,782 Posts
    • 11,617 Thanks
    theartfullodger
    • #4
    • 20th Mar 17, 12:41 PM
    • #4
    • 20th Mar 17, 12:41 PM
    Hi, I am currently researching into Buy to Let. As a non taxpayer ..............
    Originally posted by JohnnieD1
    A landlord may pay at least 10 taxes.
    http://www.landlordzone.co.uk/forums/showthread.php?49095-How-many-taxes-can-a-landlord-have-to-pay
    Think you'll find you do pay tax (Council tax, Insurance tax, fuel duty, VaT etc etc etc..)


    As said, no income above income tax limit, probably no mortgage: If you want mortgage in joint names, as I understand it, that means property in joint names...
    • Cakeguts
    • By Cakeguts 20th Mar 17, 12:46 PM
    • 2,575 Posts
    • 3,532 Thanks
    Cakeguts
    • #5
    • 20th Mar 17, 12:46 PM
    • #5
    • 20th Mar 17, 12:46 PM
    You would have to buy the property for cash without a mortgage. You won't get a mortgage because you don't earn anything.
    • teddysmum
    • By teddysmum 20th Mar 17, 1:47 PM
    • 7,886 Posts
    • 4,698 Thanks
    teddysmum
    • #6
    • 20th Mar 17, 1:47 PM
    • #6
    • 20th Mar 17, 1:47 PM
    You would be relying on the rent income covering the mortgage, but this could be severely reduced by large maintenance costs,damage by tenants, voids and cost to remove reluctant tenants. A mortgage company would not want to take the risk of your inability to pay them .
    • Crashy Time
    • By Crashy Time 21st Mar 17, 1:43 AM
    • 4,425 Posts
    • 2,028 Thanks
    Crashy Time
    • #7
    • 21st Mar 17, 1:43 AM
    • #7
    • 21st Mar 17, 1:43 AM
    A landlord may pay at least 10 taxes.
    http://www.landlordzone.co.uk/forums/showthread.php?49095-How-many-taxes-can-a-landlord-have-to-pay
    Think you'll find you do pay tax (Council tax, Insurance tax, fuel duty, VaT etc etc etc..)


    As said, no income above income tax limit, probably no mortgage: If you want mortgage in joint names, as I understand it, that means property in joint names...
    Originally posted by theartfullodger

    Tenant pays council tax.
    • JohnnieD1
    • By JohnnieD1 21st Mar 17, 7:24 AM
    • 2 Posts
    • 0 Thanks
    JohnnieD1
    • #8
    • 21st Mar 17, 7:24 AM
    • #8
    • 21st Mar 17, 7:24 AM
    Cheers - would an affordability check not show income in a joint account? To clarify - as with other investments in my name - my wife has no desire to have a BTL in her name. I would feel that the changes in taxing of income from BTL will become the difference between profit and loss, over the next few years.
    • agrinnall
    • By agrinnall 21st Mar 17, 8:18 AM
    • 17,926 Posts
    • 13,600 Thanks
    agrinnall
    • #9
    • 21st Mar 17, 8:18 AM
    • #9
    • 21st Mar 17, 8:18 AM
    Cheers - would an affordability check not show income in a joint account?
    Originally posted by JohnnieD1
    You don't think a lender is going to ask you what your income is? That's yours, not your wife's. If the house and mortgage were to be in part or whole in her name then her income is relevant, but as neither of those things are true then I can't see why they would take her income into account.
    • G_M
    • By G_M 21st Mar 17, 1:20 PM
    • 40,194 Posts
    • 45,939 Thanks
    G_M
    Tenant pays council tax.
    Originally posted by Crashy Time
    Not during voids.
    • Penitent
    • By Penitent 21st Mar 17, 1:50 PM
    • 1,276 Posts
    • 3,792 Thanks
    Penitent
    Think you'll find you do pay tax (Council tax, Insurance tax, fuel duty, VaT etc etc etc..)
    Originally posted by theartfullodger
    Tenant pays council tax.
    Originally posted by Crashy Time
    Not during voids.
    Originally posted by G_M
    I'm also pretty sure theartfullodger was responding to the OP referring to himself as a "non taxpayer" by listing taxes that he currently pays, rather than listing things a landlord would be expected to pay (since he said "you do pay tax", rather than "you would pay these taxes").
    • Crashy Time
    • By Crashy Time 22nd Mar 17, 1:45 PM
    • 4,425 Posts
    • 2,028 Thanks
    Crashy Time
    I'm also pretty sure theartfullodger was responding to the OP referring to himself as a "non taxpayer" by listing taxes that he currently pays, rather than listing things a landlord would be expected to pay (since he said "you do pay tax", rather than "you would pay these taxes").
    Originally posted by Penitent

    A successful landlord shouldn`t be paying council tax.
    • Penitent
    • By Penitent 23rd Mar 17, 9:02 AM
    • 1,276 Posts
    • 3,792 Thanks
    Penitent
    A successful landlord shouldn`t be paying council tax.
    Originally posted by Crashy Time
    At all? What about the house he's living in?
    • Crashy Time
    • By Crashy Time 23rd Mar 17, 11:03 AM
    • 4,425 Posts
    • 2,028 Thanks
    Crashy Time
    At all? What about the house he's living in?
    Originally posted by Penitent

    Well if he is successful as a landlord surely his profit, after the tenant has paid his mortgages, should cover this? But of course the reality for many landlords will be very different.
    • Penitent
    • By Penitent 23rd Mar 17, 11:40 AM
    • 1,276 Posts
    • 3,792 Thanks
    Penitent
    Well if he is successful as a landlord surely his profit, after the tenant has paid his mortgages, should cover this? But of course the reality for many landlords will be very different.
    Originally posted by Crashy Time
    You've lost me. If he uses his BTL profit to pay his council tax, he's still paying his council tax. Would you say that someone who uses their wage to pay their council tax doesn't pay council tax?

    A valid argument would have been that the OP doesn't pay his council tax because his wife probably pays it, being the earner in the household, but it's possible he makes some contribution from his savings interest/investments.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,064Posts Today

7,017Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin