Let to Buy Mortgage - Advice Please

franyjayne

Eeek! Neither of us want to sell what we already have. What would the stamp duty be if it's the only home?

MoneyGeoff

Stamp duty would be £12,500 if it's your only home I think. There are calculators online to check.

Do you currently let the flat or live in it? Are you keen to become a landlord? Do you know the responsibilities and pitfalls?

Typhoon2000

If both of you sold your properties stampduty would be £12500.
There are fees associated with selling too, no no saving to be had on that front.

franyjayne

Good point!

MoneyGeoff

Typhoon2000 wrote: »

There are fees associated with selling too, no no saving to be had on that front.

No saving? It doesn't cost anywhere near £13,500 to sell a flat.

Typhoon2000

They have two to sell. And I assume a total value of £500000.
They would also have sell both to be free of coughing up the 3% extra stamp duty. Coordinating two sales with a purchase could be problematic.

Given that neither seem too keen on selling what they have, it doesn’t seem worth the while for any small saving on stamp duty alone, after selling fees.

franyjayne

Typhoon2000 wrote: »

They have two to sell. And I assume a total value of £500000.
They would also have sell both to be free of coughing up the 3% extra stamp duty. Coordinating two sales with a purchase could be problematic.

Given that neither seem too keen on selling what they have, it doesn’t seem worth the while for any small saving on stamp duty alone, after selling fees.

Yes - about 500k and we both want to keep what we have.

Need to look into the best options - whether to release more from existing properties to put down a larger deposit on the joint property or get a higher LTV on it. He's mortgage free on his - lucky devil!

MoneyGeoff

Typhoon2000 wrote: »

Coordinating two sales with a purchase could be problematic.

Given that neither seem too keen on selling what they have, it doesn’t seem worth the while for any small saving on stamp duty alone, after selling fees.

Letting two properties could also be problematic.

Typhoon2000

As your partners flat is mortgage free, he will be claim the full current value of the flat for tax relief on the new mortgage for the new home, even if he can’t let it.

MoneyGeoff

Being mortgage free does take some of the stress out of the letting route.

I still have alarm bells ringing though that the OP is considering a new letting business (which is what it will be) with no mention of what the yield might be or the income tax situation. Perhaps one or both of them is a high rate tax payer? Also, glossing over questions about landlord responsibilities. Have a look at some of the threads from landlords that didn't bother to protect the tenants deposits - that's a sure way to spend 12 months without receiving any rent!