Renting property out for 12 months

kayfaz

HouseBuyer77 wrote: »

Oh and presumably this potential BTL would be your only property? In which case I think stamp duty is as normal (i.e. no extra 3%).

I believe this is incorrect. The property has to be your main residence and also your only property (or replacing existing main residence) for it to be on a "normal" stamp duty

AdrianC

BtL for a short term is a mug's game. Add together the purchase delays, a minimum six-month tenancy, then the sale delays, and you're over your year already - with only half a year's worth of rent, at best, plus high costs. TBH, I'd expect you to be down on the whole affair even without any maintenance expenses.

There are MUCH better ways to make your money work over the short-term. Have a look at the savings/investments board. http://forums.moneysavingexpert.com/forumdisplay.php?f=17

Hoploz

Are you sure you and your girlfriend will be eligible for right to buy? My understanding is that you need to be a tenant for certain length of time and this determines the discount. So your gf could get a good discount if she has been there for a long time, but you won't. Are you giving the money to her? I can't see that this would work with a new tenant as a buyer. Are you sure you can just immediately be made a tenant, even though you are financially secure? Social housing is supposed to be for people who have a need, surely?

ETA And by the way, I am not saying this from a political perspective, just logic. I don't mean to start a debate!

Pixie5740

The additional SDLT won't be payable although SDLT might be payable if the OP buys out the other owner of the current property. If the investment property is not sold before the OP jointly buys his gf's home then the additional SDLT will be due on that purchase.

As for the mortgage, I don't think the OP could get a residential mortgage to buy out his friend because the property won't be his main residence. A mortgage broker could advise what possibilities are open to him but I would think that as he wants to buy to let then it would be a buy to let mortgage that is required.

All in all I still think that using a range of current and savings accounts would be more cost effective for keeping £35k to £40k for 12 months than the BTL route the OP is considering.

As for the RTB, the OP making a joint application with her won't reduce the amount of discount she is eligible for, the discount doesn't revert to year zero just because someone makes a joint application with them. A tenant can make a joint application for RTB with:

* Someone who shares their tenancy
* Their spouse or civil partner
* Up to 3 family members who’ve lived with the tenant for the past 12 months. They don’t have to be named on the tenancy agreement but it must be their main home.

[Deleted User]

Out,_Vile_Jelly wrote: »

BTL is a long term business investment, not a convenient way to make quick cash on a timescale to suit you.

You've made a profit from one house and plan to get a sizeable discount at taxpayers' expense from another- what more do you want?

I believe "having your cake and eating it" is the term often used

paddy's_mum

Mrowe wrote: »

we ... want to go our separate ways

Where do your money and her children go if a couple of years down the line, you and your girlfriend also "want to go our separate ways"?

Cakeguts

Buying your girlfriend's council house is a very very bad idea for your girlfriend. I assume that the reason why she hasn't bought it already is because she can't afford the mortgage on her own? At the moment she has a right to stay in that house as long as she keeps all the rules of the tenancy and pays the rent. If you buy that house and then decide to split up the house could be repossessed if she can't buy you out and pay the mortgage on her own and she and her children would be homeless. She got the council house because she needed a home for herself and her children. Do not put her in the position of losing her home.

Guest101

This is why RTB needs to be abolished tbh...

Mrowe

Appreciate all your thoughts and advice.


I just seemed to have made a fair bit of money back through property in the last 2 years so was seeing if this is something I could carry on for the year I won't be owning a property. Just wanted some peoples thoughts, as I though, the BTL route won't be worth it so perhaps a good savings account or investing elsewhere is a better option.


End of the day I wanted to buy a house near to me where house prices are a bit more manageable, unfortunately this isn't possible due to her work and children's school so I'm going to go on the tenancy with my GF with a view to buy the house when we can. We have a baby on the way so we're fairly committed to each other, but of course things can always go wrong, but I'm obviously not gunna stick her, her kids and my child on the streets if things went wrong. I understand the concern though.


Once again thanks for your advice

sammyjammy

Its unlikely you'll get a BTL mortgage if you don't own your own property that you live in.