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Buying and renting
landg2
Posts: 1 Newbie
Any advise on the following
We are selling our home to move area and buy another house that eventually we want to rent out in order for us to rent another property ourselves.
We have a small mortgage 44,000 and we are selling at 230,000 and buying at 210,000.
Basically, when we change our mortgage on the new house to be able to rent it out, is this a re-mortgage to rent?, and i presume no stamp duty would apply as the house has already been purchased?
Also, would we need to declare income on rental for tax purposes seeing as tho this is not going to be a second property.
We are selling our home to move area and buy another house that eventually we want to rent out in order for us to rent another property ourselves.
We have a small mortgage 44,000 and we are selling at 230,000 and buying at 210,000.
Basically, when we change our mortgage on the new house to be able to rent it out, is this a re-mortgage to rent?, and i presume no stamp duty would apply as the house has already been purchased?
Also, would we need to declare income on rental for tax purposes seeing as tho this is not going to be a second property.
0
Comments
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So your selling your current home. Then you are buying somewhere else that you will live in and hope to eventually let out? When you go to change your residential mortgage to a BTL mortgage then no you won't have to pay SDLT again (unless SDLT legislation changes between now and then). The property will be subject to CGT when you eventually sell/dispose of it although you will get some PPR because you lived in the property for a time.
Yes you will need to declare rental income to HMRC because it is income and therefore subject to income tax. The fact that you will only have one property is irrelevant.0 -
Tenancies in Eng/Wales: Guides for landlords and tenants0
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