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Do I sell my BTL?
Comments
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Having a BTL is a second home, this means if you buy another house (your 'forever home') while you have a second home, youll pay a 3% stamp duty premium.
For a £250,000 house, normal stamp duty is £2500, with the 3% premium its £10,000
For a £500,000 house, normal stamp duty is £15000, with the 3% premium its £30,000
Could be another consideration re keeping BTL
Yes we do know about this and we are looking at houses around the £250k mark so the extra stamp duty will be £7.5k.LBM 14/12/06 £21,947.17 DEBT FREE 12/04/09
MFW - December 2010 £76,199 - 4th February 2021 £37,360.900 -
If we rented it out we obviously wouldn't be paying the bills just the mortgage and service charge and then the estate agent fees so they would all be covered by the rent and then we would be left with £200 a month.
Less maintenance costs as well. Any remaining profit would be taxable.
As an investment downsides appear greater than the upsides.0 -
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Crashy_Time wrote: »Why not? According to some posters demand for property is always greater than supply.0
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Comms69 I am not sure why you think I would be paying £600+ next month?
At the moment with the mortgage, service charge, council tax and energy bills it's costing us around £500 a month.
If we rented it out we obviously wouldn't be paying the bills just the mortgage and service charge and then the estate agent fees so they would all be covered by the rent and then we would be left with £200 a month.
You will be due to pay tax on the rental profit. You have been declaring the rent you received from your mum, haven't you?0 -
You will be due to pay tax on the rental profit. You have been declaring the rent you received from your mum, haven't you?
Yes, as I am self employed and have an accountant anyway.LBM 14/12/06 £21,947.17 DEBT FREE 12/04/09
MFW - December 2010 £76,199 - 4th February 2021 £37,360.900 -
Thrugelmir wrote: »Less maintenance costs as well. Any remaining profit would be taxable.
As an investment downsides appear greater than the upsides.
Looks like it in this case anyway.0 -
Anyone with a BTL looking to buy on I would advise to sell then buy in theory the house you are buying is your primary residence so unless you are in rented now and have the other house let out on a BTL you will avoid the extra 3%0
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Having a BTL is a second home, this means if you buy another house (your 'forever home') while you have a second home, youll pay a 3% stamp duty premium.
For a £250,000 house, normal stamp duty is £2500, with the 3% premium its £10,000
For a £500,000 house, normal stamp duty is £15000, with the 3% premium its £30,000
Could be another consideration re keeping BTL
Ouch........0
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