Let to Buy query

tightasagnats

Hello,

I know that the regs changed for Let to Buy, or Buy to Let, so my query is this:

Current flat worth £450000 or so, owe £112,000.

Got AIP for new place £150,000 - so should have around £387500 for new flat.

1. If I could get a 75% Let to Buy mortgage - what would the rental income on current flat need to be? Is it 125% of interest repayments on £337000? (75% of value of current flat)

2. If I sell flat 2 can I move back into flat 1? If so, how does that work? What tax due?

3. If I want to sell both, say, and buy a house, what am I liable for in terms of tax?

Many thanks,
TAAG

Thrugelmir

Guidance is now a ratio of 145% not 125%.

You'll need to work out how you will be impacted by the new rules on tax relief for interest as well.

amnblog

Thrugelmir wrote: »

Guidance is now a ratio of 145% not 125%.

Lenders calculate between between 100% and 150% at different pay rates.


We have developed a free IOS/Android App that makes the calculation. Anybody who wants a copy should ask me.

amnblog

Rent here would need to be close to £2,000 a month to bring the majority lenders in to the frame for 75% lending - which sounds unlikely.
Rent above £1,500 should produce some options.


'Let to buy' lenders, deals, and criteria, are distinct from 'buy to let'. Do not confuse the two.


Always use a broker for this type of scenario.

tightasagnats

Thanks. I would like that app, could you PM me details?

Rents are £1350-£1450 for these flats, but they rent very easily. So that would mean lower percentage loaned, i.e. less for deposit I guess.