Would this work as a BTL or should I sell

TallGirl

As there seem to be quite a few people thinking of renting their old home out or becoming btl landlords thought I would update my story (I do also have a diary on the mortgage free board).

The Royal Navy rental didn't happen as they wanted two separate front rooms for men and woman so looked for conventional tenants. Proptery was ready to rent out 1/9 and f one was due to move in 1/11 but this didn't happen as her marriage wasn't quite over. Then they found a second lot which needed a guarantor which has been sorted and should hopefully move in Thursday. Rent will be £1250 they got me to drop rent by £50. Agency fee for fully managed will be 8% so that 4.9% yield not taking repairs and tax etc into account.

I've spend £1200 on getting it painted, £450 on carpets and £200 on cleaning etc all before let and it's been empty since 1/8 so some bills to pay. It's all done however and I'm still happy with my decision I'm going to inherit some pensions from my husband very soon so will invest that in pension and ISA etc so keeping the property makes me feel comfortable as I cannot afford to buy what I would like where I live now (Wandsworth) so keeping a foot on the ladder makes more sense as I shall be returning to Hampshire where my house is within the next three years and might then we'll sell and but something else for myself and my new partner.

Anyway that is my story so far might help other.

TallGirl

Ps forgot to say I also got a new job working four days a week only (which is bliss) so with the rental income I'm earning about the same as I was when full time. I'm not 100% sure if I will be a higher rate taxpayer As my gross wages will be £31,500 and my rental income £15,000 so £46,590 but can't I deduct expenses first? I have no mortgage so not affected by the changes. Anyhow this tax year I won't go over as I was out of work two months and only have rental income for 5 1/2 months of this tax year. I'm going to get an accountant and pay extra into my pension seems sensible.

flashg67

I have a salary from a job and 2 buy to lets with my partner. Filling in the self assessment wasn't actually that frightening and I'm in no way an accountant! Saved £500 too.

It's worth checking exactly what you can claim for, eg, I had to fit a kitchens & bathrooms and claimed those against taxes. You're not allowed to replace,say, a B&Q kitchen with a top spec German one, but like for like is certainly possible, and can make a difference to reduce your total income, especially in the first year.

Yields are good to know, but the not the be all & end all. In your example, your income is 2.5 times the rent I get from 2 houses, but on yield alone, I'm doubling yours at c. 10% (good old NW housing market!)

Sounds like it's worked out for you!

FBaby

Sounds like it's worked out for you!

It certainly did, the benefit of an ex husband too ill to go and write a will. Really feel sorry for the children, seeing everything going to the wife who left their dad when he became too ill. His fault though and a lesson to learn. GO AND WRITE A WILL (or amend it when circumstances change).

TallGirl

Hi flash67 thanks for your input and your story it reassures me and yes it does sound like something I can do. Your yield is really good I must say much cheaper up North.

Fbaby you are totally entitled to your opinion there are no children and we were together for 25 years married for 10 and separated for one year prior to his death. I tried in vain to get him treatment and help and I almost drove me insane to the point I couldn't do my job.

Yes he could have made a will but the jointly own property would still have been mine which I also paid half off before we became mortgage free. The only people he leaves behind is a brother abroad who he didn't get on with and his 91 year old dad and they are both more than well looked after. Anyway as I said you are totally entitled to your opinion.