Buy to let query

charlie2517

Hi All,

I have a really basic question but this is an area I've never been in.

Background is my boyf and I are buying a place together. I have a flat I bought at the peak and so it's now in that lovely phrase 'NEGATIVE EQUITY'. I dont want to sell at a loss, am in the commuter belt for London and properties rent well in my neighbourhood so I want to keep it as an investment.

Is this possible? What puzzles me is whether I'd be able to speak to my lender and get them to allow me to rent the place out which I think is called a Buy to Let given that I am in negative equity? Or whether I simply have to stay here and cant rent it out til prices pick up?

Please dont be too unkind at my stupidity but any guidance would be appreciated.

BIG THANKS xx

charlie2517

(have just been learning about consent to let so this may be the first point of call rather than a BTL (which I would like to avoid!). Also I am going to rent it out on a a guarenteed rent scheme with an agent - things I am looking to research are - apart from changing mortgage, insurance building and contents for LL, electrical and gas certificates, how much furniture I provide in a furnished flat. Can anyone think of anything else i need to read up on??)

silvercar

Tax.

You will have a particular issue in that the mortgage interest is an allowable expense upto the value of the property when first let. As your mortgage is now greater than the property value, only a proportion of it will be an allowable expense.

charlie2517

You're right THANKS - my mistake I should have mentionned I already have an accountant who does my tax return so that box was already mentally covered.