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First Time Buyer and Rent Out

TomH96
TomH96 Posts: 1 Newbie
in House buying, renting & selling
Hi,

I have found a perfect house within my budget to purchase but due to current health and geographical with my partner reasons, I cannot move into there just yet. So therefore I will have to remain living with my parents.

If I were to purchase it and rent out with the intention to move into it eventually, what are the rules regarding capital gains etc?

Thanks

Comments

  • BLOW_FLY
    BLOW_FLY Posts: 115 Forumite
    I believe you!!!8217;ll need a BTL mortgage for which most lenders will want you to already be a property owner for use as security.

    BF
  • kingstreet
    kingstreet Posts: 39,335 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You'll need a larger deposit, usually 25% or more.

    The affordability will be based on personal, rather than the rental income.

    There are few lenders offering BTL products to FTBs/non-homeowners.

    You won't get FTB SDLT exemption.

    Any growth in value will be subject to CGT on sale and this will be affected by you stopping letting and making it your main residence at some point.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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