Buy to Let Mortgage / Pension

Grippit

I have been hearing about the possibility of buying property and putting it into my pension.

My mother has decided to sell her house and has given me and my spouse first refusal. The house is underpriced at £50k, my house is £50k and our combined household income is £40k per year. I believe we can afford the mortgage on the second house even if it is empty as we have less than £3k in loans.

What are the benefits of having the property in some sort of pension scheme?

Hillfly

I'm no experet on this but i think if you have the property as part of a pension scheme you will get tax breaks on increase in value and rental income - but you can't touch any money you make from it before you retire.

Hopefully an expert can expand on this for you.

dunstonh

You cannot place a residential property into a pension (well you can but the tax advantages that were going to make this seem desirable were wiped out a few months ago, making it pointless and you would find it hard to get a pension trustee that would allow it). You can only place commercial properties into it.