Let to buy and benifit income help please

TheElectricCow

tajin777 said:

ArbitraryRandom said:

You should also be aware that you would count as self employed as a landlord (you would split the rental income with your partner on your tax returns based on the share of the property you owned; so I assume 50/50).

I'm not sure if that income would change any of your benefit awards/entitlements?

It wont be share . I will be the sole owner for the both house. 

Just to clarify, where is the income to pay the mortgage on the new house coming from?

If the husband isn’t going to contribute anything financially to the new house and you’re out of work you might have a hard time getting a mortgage on 300k based purely on the benefits you receive.

You most likely won’t be able to count potential rental income from your current property as income for the purposes of a mortgage application while you’re still living in the house and don’t have a paying tenant. And you definitely won’t be able to include your husband’s income if the house is to be owned solely by you.

ArbitraryRandom

tajin777 said:

housebuyer143 said:

I'm not sure how much your partner earns but you will not get £300k mortgage unless you have at least a 10% deposit and you need at least £60k income. 
Only a handful of lenders will accept DLA, most accept child benefit if income if not a higher rate tax payer. 

For BTL most lenders require a minimum earned income so no benefits are taken into account. You definitely can't do this without your partners income. 
You are better off selling your current house and buying a new one if you need to upsize. 

For the 2nd house is it still 10% deposit required? Lets say with all the benefits and my husband self employed income total is £30k per anum and can pull out 100k from current house (ltb) will that work? 

The problem is that you would need an income sufficient to pay BOTH mortgages, so quite often they expect a higher deposit/will loan you less for a second property. 

Given your specific circumstances, there may be a lender out there for you, but I'd really suggest a quick conversation with an independent broker. 

MultiFuelBurner

You should speak to a financial specialist that has experience with your benefits situation and can advise on the pros and cons of buy to let's.

From what I have read so far it does not appear to be a good idea or even feasible but then again you may have extra information you have not shared.

marcia_

 If you own a second home you won't be entitled to claim UC 

https://forums.moneysavingexpert.com/categories/benefits-tax-credits

housebuyer143

tajin777 said:

housebuyer143 said:

I'm not sure how much your partner earns but you will not get £300k mortgage unless you have at least a 10% deposit and you need at least £60k income. 
Only a handful of lenders will accept DLA, most accept child benefit if income if not a higher rate tax payer. 

For BTL most lenders require a minimum earned income so no benefits are taken into account. You definitely can't do this without your partners income. 
You are better off selling your current house and buying a new one if you need to upsize. 

For the 2nd house is it still 10% deposit required? Lets say with all the benefits and my husband self employed income total is £30k per anum and can pull out 100k from current house (ltb) will that work? 

One lender I know and used to accept DLA are Skipton, I think they still do, they also accept child benefit.

With a £100k deposit you still need an income of around £40k to get the next house. You also have to pay an additional 3% stamp duty on the new house and that will take a lot of the money your family can give you. Then you are liable for both properties so if your tenants don't pay, do you have the ,£500-£600 a month to pay the mortgage PLUS your residential mortgage? I don't think you do from what you have said - I personally would feel uncomfortable doing so.

Is there a reason that you want to keep the smaller house and you don't just sell it and move? 

You can probably do it based on your income and your DLA etc but do you really need to or want to? I used to rent a house out and I hated every minute of it, and I had worked in a letting agent for 10 years and knew all the pitfalls. Don't go into it with your eyes closed, many many things can and do allr horribly wrong. 

_Penny_Dreadful

tajin777 said:

I curently owned house, 13k left and thinking of paying of all by next year 2024. My house is value est 165k.
i am on universal credit/Dla (1child)care allowance and child benefits. Also dla for 2nd child is processing. Due to disability child i cant work atall. Wondering all these benefits will count as income ? Also my family will gift me around 15-20k when buying the house for deposit.
is it even possible for me to buy 250k to 300k house? 

My current house rent will be £800-£900 . Thats what i know on my street.

My expense total will be £1250 .
any suggestion? My husband is self employed but not been 1 yrs yet and earn £500 after all his self employment expenses 

You would be better off posting on the Mortgages & Endowments board where a few mortgage brokers seem to regularly post. 

Personally I don’t think your numbers stack up especially once you factor in the higher rate of SDLT which will be between £7,500 to £11,500 which wiped out a good chunk of the family gift. I also question the decision to become a landlord when you’ve already got your hands full with two disabled children to take care of. Please, please don’t just say you’re going to get a letting agent. 

tajin777

housebuyer143 said:

tajin777 said:

housebuyer143 said:

I'm not sure how much your partner earns but you will not get £300k mortgage unless you have at least a 10% deposit and you need at least £60k income. 
Only a handful of lenders will accept DLA, most accept child benefit if income if not a higher rate tax payer. 

For BTL most lenders require a minimum earned income so no benefits are taken into account. You definitely can't do this without your partners income. 
You are better off selling your current house and buying a new one if you need to upsize. 

For the 2nd house is it still 10% deposit required? Lets say with all the benefits and my husband self employed income total is £30k per anum and can pull out 100k from current house (ltb) will that work? 

One lender I know and used to accept DLA are Skipton, I think they still do, they also accept child benefit.

With a £100k deposit you still need an income of around £40k to get the next house. You also have to pay an additional 3% stamp duty on the new house and that will take a lot of the money your family can give you. Then you are liable for both properties so if your tenants don't pay, do you have the ,£500-£600 a month to pay the mortgage PLUS your residential mortgage? I don't think you do from what you have said - I personally would feel uncomfortable doing so.

Is there a reason that you want to keep the smaller house and you don't just sell it and move? 

You can probably do it based on your income and your DLA etc but do you really need to or want to? I used to rent a house out and I hated every minute of it, and I had worked in a letting agent for 10 years and knew all the pitfalls. Don't go into it with your eyes closed, many many things can and do allr horribly wrong. 

I live in heart of manchester, property price rising high so as rent. People r hunting for rent house and cant get it. That was one of the reason why i want to keep my house. 

tajin777

Hi if i have 1 residential house and 1 buy to let house , can i still able to claim UC? Even though rent going towards mortgage for buy to let house and for residential house we pay it. 

tajin777

_Penny_Dreadful said:

tajin777 said:

I curently owned house, 13k left and thinking of paying of all by next year 2024. My house is value est 165k.
i am on universal credit/Dla (1child)care allowance and child benefits. Also dla for 2nd child is processing. Due to disability child i cant work atall. Wondering all these benefits will count as income ? Also my family will gift me around 15-20k when buying the house for deposit.
is it even possible for me to buy 250k to 300k house? 

My current house rent will be £800-£900 . Thats what i know on my street.

My expense total will be £1250 .
any suggestion? My husband is self employed but not been 1 yrs yet and earn £500 after all his self employment expenses 

You would be better off posting on the Mortgages & Endowments board where a few mortgage brokers seem to regularly post. 

Personally I don’t think your numbers stack up especially once you factor in the higher rate of SDLT which will be between £7,500 to £11,500 which wiped out a good chunk of the family gift. I also question the decision to become a landlord when you’ve already got your hands full with two disabled children to take care of. Please, please don’t just say you’re going to get a letting agent. 

Do u have the link for this mortgage endowment group?

_Penny_Dreadful

tajin777 said:

_Penny_Dreadful said:

tajin777 said:

I curently owned house, 13k left and thinking of paying of all by next year 2024. My house is value est 165k.
i am on universal credit/Dla (1child)care allowance and child benefits. Also dla for 2nd child is processing. Due to disability child i cant work atall. Wondering all these benefits will count as income ? Also my family will gift me around 15-20k when buying the house for deposit.
is it even possible for me to buy 250k to 300k house? 

My current house rent will be £800-£900 . Thats what i know on my street.

My expense total will be £1250 .
any suggestion? My husband is self employed but not been 1 yrs yet and earn £500 after all his self employment expenses 

You would be better off posting on the Mortgages & Endowments board where a few mortgage brokers seem to regularly post. 

Personally I don’t think your numbers stack up especially once you factor in the higher rate of SDLT which will be between £7,500 to £11,500 which wiped out a good chunk of the family gift. I also question the decision to become a landlord when you’ve already got your hands full with two disabled children to take care of. Please, please don’t just say you’re going to get a letting agent. 

Do u have the link for this mortgage endowment group?

https://forums.moneysavingexpert.com/categories/mortgages-endowments