BTL-the tax logic?

savinglikemad

You state by default, Just checking is she on the deeds or mortgage. My rental income is mine alone, as I am the only one on the deeds and mortgage, my husband is therfore nothing to do with the business even though we are married.

de1amo

Turkey--none of the above! it has agreements on tax with the uk government but its what i was guessing with getting allowances. thanks-i will suffle my affairs about based on this info. İf i go expat i expect the turkish gov will want their slice of my pension?

İ always beleived if they money came out of a joint account to pay the mortgage it connects the property--also it is easy for spouces to go and register an interest on the property without the 'owner' knowing--which my ex wife did!

Thrugelmir

de1amo wrote: »

Turkey--none of the above! it has agreements on tax with the uk government but its what i was guessing with getting allowances. thanks-i will suffle my affairs about based on this info. İf i go expat i expect the turkish gov will want their slice of my pension?

İ always beleived if they money came out of a joint account to pay the mortgage it connects the property--also it is easy for spouces to go and register an interest on the property without the 'owner' knowing--which my ex wife did!

Suggest you speak to a good accountant in your native land to assess the situation and give you the advice you need. Never assume is my motto.

silvercar

If you mortgaged your main home to buy a BTL the interest on the mortgage would be considered a rental expense, this is because it is the purpose of the money not where (or if) it is secured that counts.

In the boom times, people would buy a BTL by raising the deposit by increasing the mortgage on their main home and a BTL mortgage on the rental place, both parts counting as a rental expense. The restriction is to the interest on the loan(s) upto the value of the property when first let.

İ often read about people holding on to their BTL mortgage instead of clearing the mortgage and i am trying to work out the financialy prudent way of dealing with it?
İ know the interest is tax deductable against rents but the fact you have to actually pay the interest at a higher rate than a normal mortgage or any saving rate gets me puzzling as to why not pay it off!

There is also some safety in peoples mind, that if they got into financial difficulty, it is more desirable to have your resi home mortgage free than a BTL. Also bear in mind that people have all sorts of BTL mortgage deals, mine is only 0.11% higher than my resi mortgage. There will also be people letting a former main home (possibly with consent to let from their lender) that are only paying low rates on their let property.