Tax implications and ways around on house rental

matilds

Hi all

Have a few questions to ask about renting out my house.
We plan to buy a new house and rent out the house we currently live in, both will have mortgages on them, all mortgages solely in my husbands name

1. The taxman has told me that as mortgage is in husbands name only, it is not a joint tax implication, only implication for him.This isn't good for us as he is higher rate taxpayer and I am lower.
   Is there a way for me to become joint owner (without going on mortgage)? Or, failing this can I become his letting agent and charge him an extortionate amount (which he can claim for) so that he then makes no profit and therefore pays no tax. I will then only have to pay tax on my new income (which will still keep me in lower bracket) at 20%. Effectively this means that any profit would only be taxed at 20%.
   Can we do this?
2. I am aware you get mortgage interest relief on borrowings up to the value of rental property when first let. How do you determine value (in tax mans view) do you need proof from an estate agent, mortgage valuer, or just what you (honestly) think it is worth? We can't obviously say the purchase price is the value as it was purchased 12 years ago so nothing like what its worth now.
3. Rental house worth £200K (so this is classed as capital when first let) , mortgage on rental house £150K (can only get mortgage on it max 75%), so additional £50K raised against residential home (so can claim for full £200k interest relief). The interest rate is much lower on the 75% part of the mortgage(2%) which is on rental house, than the 25% (4.29 %) on residential house that pays for rental house, do I have to claim interest tax relief on that split, or can I just combine the debt, as there is obviously a larger mortgage still outstanding also on my residential property, not just the 25% for rental house (i.e. say I owe £200k on the rental house out of all my debts) and then choose to pay it off in whatever way I like (i.e. I would want it to come off the mortgage with the higher interest rate, as can claim more interest relief)!

Any help gratefully received, sorry if it sounds silly or I have gone on!!!

Thanks
Matilds