BTL property Mortgage

starM

Hi,

I have Buy to let property which has an outstanding mortgage of 42k. The mortgage is in my name. The rent payments are £550pm.

I am think to repay the full outstanding balance and transfer the property in my wife's name. I am working full time and she is housewife. The annual profit will be less than 10k so there wouldn't be any tax to pay.

Afew questions:-

• Once the mortgage is paid off - Can I straight away do another tenancy agreement with the tenants or will have to wait until the property is transferred into my wife's name?
  
• Which forms do I have to complete to transfer property ownership?

Thanks
MS

purdyoaten

The transfer has to be formal - a solicitor would normally be required.

It always worrie me when mortgage repayments are mentioned alongside 'there is no tax to pay'. You do know that you can't claim the mortgage repayments - only the interest element?

starM

Yes I do know that and take that into account when I do my tax returns. At the moment profit after taking off expenses comes to around 4k a yr which is costing me £800pm in tax.


If I transfer the properly into my wife's then there will be no tax liability because she is not working.


Once mortgage has been paid off, can I let tenants know immediately of new landlord? Or I have to wait the property is transferred over to her name?

sheramber

As long as the property is in your name you will be the landlord, you will receive the rent and you wil be assessed for any tax due on the profit.

Once the property is transferred to your wife's would you not need a new tenancy agreement signed with her as the landlord.