Buy To Let Costs..

rjtyrell

Morning all,

I am looking at releasing some equity from our current property which has seen a value increase due to the impending cross rail route into London.

What costs we will be hit with if we invest?
Stamp duty + extra stamp duty
Survey
Solicitors fees

Are there any additional costs which fall on buy to let investors?

Kind regards

Richard

HappyMJ

rjtyrell wrote: »

Morning all,

I am looking at releasing some equity from our current property which has seen a value increase due to the impending cross rail route into London.

What costs we will be hit with if we invest?
Stamp duty + extra stamp duty
Survey
Solicitors fees

Are there any additional costs which fall on buy to let investors?

Kind regards

Richard

Income tax (reduced tax code so your monthly income is reduced)...VAT...Capital Gains Tax...Council tax (when in a void which you inevitably will be at the start if you buy)...Landlord licensing costs (depending on area...and very expensive)...loads more. That's just the start.

Bluebirdman_of_Alcathays

Income tax - if you are a higher rate tax payer, tax relief on the interest component of the mortgage is restricted to 20%. It is being phased in parts until 2020 - you will need an accountant.


https://www.unbiased.co.uk/news/three-ways-to-cope-with-losing-buy-to-let-tax-relief/3963


CGT. Agency costs to manage it (optional).


What are the numbers like? The people I've spoken with post April are finding the additional SDLT wipes out their margin in the first year. The chancellor has it in for BTL landlords - as you are financing this via debt secured on your own home, be careful!

rjtyrell

Many thanks for the comments and link to the article.

I will have a good read through.

Richard