New buy to let tax on low income

jamels2

Thanks that's a great link. So the only change to my plan is 3% surcharge of stamp duty. I will just have to factor this into the purchase price then I guess.

buglawton

There was a surge in transactions and prices just before the new 3% came in, wouldn't surprise me if BTL prices have now sagged a bit.

At least you are a straightforward case of paying the tax because it's an investment venture, not like the many 1000s that go caught out due to their lifestyle choices like rent/work in one place, but buy to rent out in another, or couples/joint owners in various complicated scenarios.

brit1234

booksurr wrote: »

have you read the OP? The mortgage will be an interest only BTL mortgage. You do not need a repayment vehicle with them, and it most certainly is not fraud if you don't have one.

as already pointed out the exit strategy is well established:
- either re-mortgage (which of course may or may not be available at the requisite time)
- or sell up (which may or may not cover the loan balance depending on the gain/loss made obviously)

Really, so you can simply keep taking interest only mortgages for multiple properties each year with no intention of paying the debt? I think you may of been to one to many how to become a property millionaire summit.

I would recommend you look at the terms and conditions carefully. The BOE and government have already established that buy to let is a big risk to the economy with all the fraud and debt, that's why further clamp downs are on the way not just section 24, stamp duty. Look out for the Bassell III clampdown on top.

Cornucopia

brit1234 wrote: »

Really, so you can simply keep taking interest only mortgages for multiple properties each year with no intention of paying the debt? I think you may of been to one to many how to become a property millionaire summit.

I think you may have misread the thread. The options for repaying the mortgage are remortgaging or selling the property.