Is it possible to have 2 residential mortgages?

Euphoria1z

GavB79 wrote: »

That's for the proceeds, but where does the money come from to buy it in the first place?

Commercial loan? I think i heard theres a special kind of loan/mortgage for this. probably has very high rates id imagine.

somethingcorporate

Commercial mortgage.

Businesses need to buy property too!

mio_2

jungle_jane wrote: »

i could be wrong about this so interested to hear other views...

as far as i know, you get hammered with tax. you are classed as a property developer and taxed are huge...if you live in a place and its your primary residence then you don't pay property developer tax and you don't pay capital gains

i can't think of anything worse than taking on a do-er upper and then selling it on...what do you guys think?

what exactly is "property developer tax" as opposed to capital gains tax?

unhappy_shopper

It is possible to have 2 residential properties with mortgages, both occupied by the mortgagees, from the same lender, provided you meet their lending criteria and have adequate deposit. There are situations like when the partners are working in different places and they own their homes(with mortgages) rather than rent. However, you have to nominate one of them as your primary residence, according to HMRC rules, for CGT purposes.

Thrugelmir

mio wrote: »

what exactly is "property developer tax" as opposed to capital gains tax?

Income tax or corporation tax on the profit made. As the activity will be viewed as a trade not an investment.