We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Advice needed re first rental
pippinpoppin
Posts: 4 Newbie
Hi!
Myself and my husband have a mortgage on our first home. We are looking to move and have seen a property with an annex that has the potential to be rented out.
At present there is an internal open arch and no kitchen. I understand that the addition of a kitchen and making it self contained will incur separate council tax.
My first question is regarding the mortgage.. Seeing as we would be buying one property with a view to letting part of it out - would a normal home owners mortgage be sutiable? I'm assuming a buy to let won't be appropriate as we will be living there.
Also, and probably a much bigger question is regarding income tax on the rent of the annex. My husband's income takes us over the 40% income tax and therefore I understand we will pay 40% tax. However I can't quite get my head around how much tax will be payable.
I have seen information re not taking into account mortgage interest etc, but I'm not sure how this would be relevant if we had a normal home owners mortgage on the whole property.
I hope that makes sense.
Myself and my husband have a mortgage on our first home. We are looking to move and have seen a property with an annex that has the potential to be rented out.
At present there is an internal open arch and no kitchen. I understand that the addition of a kitchen and making it self contained will incur separate council tax.
My first question is regarding the mortgage.. Seeing as we would be buying one property with a view to letting part of it out - would a normal home owners mortgage be sutiable? I'm assuming a buy to let won't be appropriate as we will be living there.
Also, and probably a much bigger question is regarding income tax on the rent of the annex. My husband's income takes us over the 40% income tax and therefore I understand we will pay 40% tax. However I can't quite get my head around how much tax will be payable.
I have seen information re not taking into account mortgage interest etc, but I'm not sure how this would be relevant if we had a normal home owners mortgage on the whole property.
I hope that makes sense.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.8K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 245.9K Work, Benefits & Business
- 602K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards