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Why Buy to Let?
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There is no tax relief with mortgages. There are allowable expenses but not tax relief. Tax relief is when the Govt gives you something, like on pensions (pension tax relief) or life assurance (life assurance premium relief or more recently pension term assurance).I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Are you a human. You seem pretty niave to the whole issue. You cannot swap a home for a few ducks and a goat now you know.0
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ginger_nuts wrote:I remortgaged my house to buy a BTL property .My BTL has not got a mortgage everything is owed on my home mortgage .I get tax relief on the additional borrowing (BTL ) .My interest rate is not the cheapest but I didnt want any tie in .If I sell the BTL I can clear my mortgage without any penalty .
So you've remortgaged your home to buy a BTL and you get tax relief?
I take it that when you do sell your BTL you remortgage it first to release all the equity or you'll be paying CGT on the whole lot won't you.
Sorry if i've got this all wrapped around my neck, newbie.0 -
CGT will be payable on the sale, if applicable. The amount of mortgage on the property at the point of sale is irrelevant to the CGT. This is where a portfolio of BTLs, each purchased on the price rise and re-mortgage of the previous one, can cause serious tax problems when one is sold.Will_it_make_me_rich wrote:So you've remortgaged your home to buy a BTL and you get tax relief?
I take it that when you do sell your BTL you remortgage it first to release all the equity or you'll be paying CGT on the whole lot won't you....A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
i've seen someone raise money on their existing property - they proved to inland revenue where the funds came from and the monthly payment for it - so they were ok to do it0
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Go to a mortgage broker. I eventually used a mortgage company called GMAC for a buy to let. You only need 11% deposit loan to value and arrangement fee was £595. You also need buy to let buildings insurance. Try https://www.ukinsurancenet.com. Don't worry its not as diaunting as you might think!!!. but remember you must look at this as a long term investment - you are unlikely to make money on a month to month basis0
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