Does this have to be BTL mortgage?

phlash

I would be careful with new_home_owner's 'advice', I'm not so sure it is worth a great deal.... See below for his fruits....

http://forums.moneysavingexpert.com/showthread.html?t=2356385

He has said one thing that is plausible, and that is to remortgage your own property to get the cash. Unfortunately he is not too well informed of how to do this. You should not apply to remortgage stating that it is for household improvements.

You should state it is to invest in a second property. That way, you can legitimately claim mortgage interest relief up to the amount borrowed to buy it up to the market value of the property, in line with BIM45700. If you do as new_home_owner states you will not be able to claim this relief.

Any

But is it BTL if we are not going to have any official tenants in?
This is to help our father, not to let it out to make money on.

I couldn't find definition of what actually is BTL anywhere, apart from
"The phrase buy-to-let can refer either to the investment strategy of buying a residential property to be let for profit; or to a particular category of mortgage used to purchase a property for letting." or something along those lines.


It's all confusing..

Any

If we had to remortgage our house to buy this property outright, would we have to go to specialist to give us remortgage based on our house + investment property cash?

new_home_owner_3

i never i just phoned up and said i wanted to borrow more for house improvemnets, the thing that might come up is it will be a second home and you have to nominate which one will be your main residence with in three years for tax reasons.

phlash will scarmonger you, he just doesnt like anyone having a second house without a btl rip off mortgage.

new_home_owner_3

Any wrote: »

If we had to remortgage our house to buy this property outright, would we have to go to specialist to give us remortgage based on our house + investment property cash?

I would just call the nationwide say you need the extra money the amount your asking for could even be for a car and a holiday has long as they get the money back i dont think they will be bothered.

There will be no need for any specialist mortgage broker.

Leon_W

Phlash

Sorry, but you are 100% wrong on the BTL point. The OP cannot have a BTL mortgage as the person living there would be a close family member, these are normally done on a residential mortgage if the applicants income covers all outstanding residential loans. Most BTL lenders will not allow a family member to live in the property as the loan then becomes regulated by the FSA.

BTL is not regulated by the FSA.

Regards

Any

leon_w wrote: »

phlash

sorry, but you are 100% wrong on the btl point. The op cannot have a btl mortgage as the person living there would be a close family member, these are normally done on a residential mortgage if the applicants income covers all outstanding residential loans. Most btl lenders will not allow a family member to live in the property as the loan then becomes regulated by the fsa.

Btl is not regulated by the fsa.

Regards

thank you. You are a god

new_home_owner_3

Any wrote: »

thank you. You are a god

Glad you got the answer you was looking for, and i hope you and your brother get your dad sorted. good luck.

Any

Thanks NHO. I was already getting stomach ulsters imagining that we need to remortgage our house up to the roof:)

phlash

Leon_W wrote: »

Phlash

Sorry, but you are 100% wrong on the BTL point. The OP cannot have a BTL mortgage as the person living there would be a close family member, these are normally done on a residential mortgage if the applicants income covers all outstanding residential loans. Most BTL lenders will not allow a family member to live in the property as the loan then becomes regulated by the FSA.

BTL is not regulated by the FSA.

Regards

Thanks for the info.....duely editted post. I guess I was extremely hasty. The OP needs to be aware that the property would be subject to CGT on sale and that expense deductions are limited in this case to nil.

Need to read page 6 here:

http://www.wealthandtrustee.co.uk/images/tax_insider/march2007.pdf

and think about what happens when the flat is vacated by the father. i.e. The residential mortgage interest...i.e.can it be used to deduct against any lettings income for the future?