Buy To Let PLUS First Time Buyer ??

1Direction

Hi there,

I am new here and seeking some advices about buying a property.

My husband owes the house we live in, if I want to buy another place under my name, am I a First Time Buyer?

I have been thinking about buying another property and let out without mortgage. I have been saving for a while and should have £250,000 savings by end of this year. We live in south west London, near Richmond, I'd like the new property is in the area too. However for this budget I properly can only buy a tiny flat.

So my second question is: should I save for another couple of years and buy a little bit bigger place, but pay stamp duty? Or buy a tiny place under £250k without paying stamp duty? Bear in mind this property is going to be let out to be my 2nd income.

Many thanks for your time.

G_M

If this is a BTL, what matters is your business plan:

What is your target market for tenants? What is the competition? What is your business budget? Have you factored in a contingency fund?

Why does the FTB question arise? Why is that relevant?

Take a look at this post below, read it, read ALL the links in it, then prepare your budget, then decide what kind of property (IF ANY) to buy.

And finally, after all that, come back and ask any questions you have....

New Landlords (information for new or prospective landlords)

1Direction

G_M wrote: »

If this is a BTL, what matters is your business plan:

What is your target market for tenants? What is the competition? What is your business budget? Have you factored in a contingency fund?

Why does the FTB question arise? Why is that relevant?

Take a look at this post below, read it, read ALL the links in it, then prepare your budget, then decide what kind of property (IF ANY) to buy.

And finally, after all that, come back and ask any questions you have....

Thanks for your reply. I will read the link you sent.

The reason is if I'm qualified as a first time buyer, I don't really want to give up the advantage that I don't need to pay stamp duty for under £250k. Unless the policy has changed.

arbrighton

1Direction wrote: »

Thanks for your reply. I will read the link you sent.

The reason is if I'm qualified as a first time buyer, I don't really want to give up the advantage that I don't need to pay stamp duty for under £250k. Unless the policy has changed.

The stamp duty relief for first time buyers ended last year. Under £250k will need an extra 1% for SDLT. Over will be 3%

Lots of reading required before you buy a property never mind take on all the responsibilities of being a landlord.

Werdnal

Without wishing to query into your finances, if you have savings of £250K, are you a high earner/higher rate tax payer? You will have to declare and pay tax on your rental income, and if buying in a single name the income will be all yours, so you cannot share the tax liability with your hubby.

Also, if you are thinking of/only able to afford a flat, check the lease to ensure you are able to let it.

carslet

G_M wrote: »

If this is a BTL, what matters is your business plan:

What is your target market for tenants? What is the competition? What is your business budget? Have you factored in a contingency fund?

Why does the FTB question arise? Why is that relevant?

Take a look at this post below, read it, read ALL the links in it, then prepare your budget, then decide what kind of property (IF ANY) to buy.

And finally, after all that, come back and ask any questions you have....

New Landlords (information for new or prospective landlords)

a lot of banks will not lend as a BTL for FTB, or people without a residential mortgage too. or if it their first mortgage, so quite relevant really, I know woolwich dont lend BTL for FTB

maybe you know some that do though you could let the OP know,

Werdnal

Who mentioned a mortgage? OP said they have £250K savings, so sounds like a cash buyer to me!

dimbo61

If paying CASH then no mortgage needed so it does not matter if FTB or not.
£250K would buy a very nice property in many parts of the country OUTSIDE London

G_M

carslet wrote: »

a lot of banks will not lend as a BTL for FTB, or people without a residential mortgage too. or if it their first mortgage, so quite relevant really, I know woolwich dont lend BTL for FTB

maybe you know some that do though you could let the OP know,

I read the 1st post before commenting on the relevance of FTB issue....

I have been thinking about buying another property and let out without mortgage.