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Do I sell my BTL?

2

Comments

  • saver03
    saver03 Posts: 651 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    BarleyGB wrote: »
    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 £37,360.90
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    saver03 wrote: »
    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.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    silvercar wrote: »
    Hmm. Are you sure he isn't planning on selling one of his apartments and doesn't want your place on the market at the same time?

    Why not? According to some posters demand for property is always greater than supply.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Crashy_Time wrote: »
    Why not? According to some posters demand for property is always greater than supply.
    and according to crashytime the world is a flat disc from which it is possible to sail off the edge
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    00ec25 wrote: »
    and according to crashytime the world is a flat disc from which it is possible to sail off the edge


    No, just that true demand for property isn`t the same as speculative demand. What do you think the OP should do with their BTL?
  • sheramber
    sheramber Posts: 23,024 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    saver03 wrote: »
    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?
  • saver03
    saver03 Posts: 651 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    sheramber wrote: »
    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 £37,360.90
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    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.
  • AndyKeogh
    AndyKeogh Posts: 14 Forumite
    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%
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    BarleyGB wrote: »
    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........
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