Let to buy and benifit income help please

Alice_Holt

Not if your savings (including equality in the BtL) exceed £16k.

Momanns

The rent you receive is still classed as taxable income. Without knowing your details, it is almost impossible for someone on the internet to answer. There is an online benefit calculator - https://www.gov.uk/benefits-calculators 

Complete this and see what comes back or speak to the DWP directly. Just remember the rent you receive is classed as income whatever its use.

poppy12345

Momanns said:

The rent you receive is still classed as taxable income. Without knowing your details, it is almost impossible for someone on the internet to answer. There is an online benefit calculator - https://www.gov.uk/benefits-calculators 

Complete this and see what comes back or speak to the DWP directly. Just remember the rent you receive is classed as income whatever its use.

The benefits calculator will not help in this situation because it will not know if there’s capital in the BtL. 

I wouldn’t advise anyone to speak to DWP for any benefits advice because they are not benefits advisors. Besides that, when you ring them you’re speaking to someone from a call centre, not someone from DWP itself. 

poppy12345

I’m another thread if yours you mention already claiming UC. https://forums.moneysavingexpert.com/discussion/6441943/let-to-buy-and-benifit-income-help-please/p1

If this is correct and you have a property that you’re renting out then you need to report the changes to UC. If you have capital of more than £16,000 entitlement to UC will stop. Any overpayment for UC will need to be repaid back. 

tajin777

poppy12345 said:

I’m another thread if yours you mention already claiming UC. https://forums.moneysavingexpert.com/discussion/6441943/let-to-buy-and-benifit-income-help-please/p1

If this is correct and you have a property that you’re renting out then you need to report the changes to UC. If you have capital of more than £16,000 entitlement to UC will stop. Any overpayment for UC will need to be repaid back. 

I am just gathering all the information right now.  Not prepared for the buy to let house yet due to on benefits and low income. Also do u know if i have money saving into kids account will that count as my saving too? 

Thank you

sheramber

If the accounts are in your name then yes, it will be considered your income.

If the accounts are in the children's name , such as  junior ISA ,  and  you cannot  withdraw the money , then they will be the child's income.

The value o the buy to let house will be considered as capital, so that alone will out you over the £16, 000 limit. So you will not be  eligible for UC.

Your rental income ia taxable and you can only claim  tax relief at 20% on the interest payments, not on any capital repayment.

Grumpy_chap

tajin777 said: 

I am just gathering all the information right now.  Not prepared for the buy to let house yet due to on benefits and low income. 

This is a bit confusing.
Do you already have the BTL property?
If not, how are you proposing to get the BTL property?

marcia_

 You say a family member is gifting you a substantial amount of money for the deposit?

 You realise this will need to be reported and your universal credit will stop. 

 To use the money to buy a house which is not for you to live in may be seen as deprivation of capital. 

Yellowsub2000

If you sell to rent you will have to explain where the money went

Caz3121

I think the OP wants to rent out the property they currently live in at take £100k of the equity out via a 'let to buy' mortgage. I assume that they hope is that the rental income will cover the payments of the mortgage, the income tax, safety checks, upkeep etc (although tenant voids would likely be an issue)
OP then wants to use the £100k together with some gifted money and a £150k+ mortgage in sole name to purchase a bigger property to live in. 
Problem being current income is from benefits and some would stop if owns a property that does not live in.