Buy to Let remortgage and equity release

dimbo61

Wrong about the Tax.
Homework or speak to an accountant.
Lettings agents, solicitor, and Financial Expert who deals in property.

caprikid1

"I pay tax on my basic salary of 70,000 and then an additional 20% on any profits made from rental?"

If you earn 70,000 then you will pay 40%, plus all the interest will not be all deductible as an expense, there are calculators to work it out. It could easily work out at least 50%. Plus you may have to pay on account upfront so your first tax bill could be almost equal to the rent received that year.

kingstreet

Slithery said:

Usually around 75% LTV is required for a BTL mortgage.

So maybe around £40k?

Just to add to this, I'd say the lower of 75% or the amount generated by the estimated rental income based on a set rate and percentage excess (ie 145% @ 5%pa).

Thrugelmir

_Sam_ said:

 From what I understood from our mortgage broker, for the let to buy/buy to let mortgage your salary is irrelevant, the lenders look only at the projected rent.

Your ability to fund and service the ongoing costs of the rental will form part of the overall affordability assessment. Particularly if equity is released to fund another purchase. Letting a property isn't an ATM.