Renting main property and downsizing to a smaller home

bellabella

As the above says we are looking to rent out our main property which is in my name only (inherited) and are now in the position to downsize to a smaller more economical property to be purchased outright in husbands name only . Now as i have no pension the funds from the rental would become my pension on paper with fees we would be looking at an income of just over 2K per month (London) other than fees and insurances what should i be doing and asking letting agents when they come to look at the property and is there anything i should seriously consider before embarking on this journey. Thanks In advance

Emmia

You'll be subject to the higher rate of SDLT as the smaller property will be your second property - married couples are treated as one unit for this purpose.

RAS

At present, you'd probably get a better income just by selling and putting in less risky investments like ISA, NS&I.

Do you have enough money to cover the tenant from hell, no income for a year whilst you evict, legal fees and 10k+ repairs?

bellabella

RAS said:

At present, you'd probably get a better income just by selling and putting in less risky investments like ISA, NS&I.

Do you have enough money to cover the tenant from hell, no income for a year whilst you evict, legal fees and 10k+ repairs?

I am not wanting to sell at present there is a glut on the market locally right now and luckily yes i could cover the above but wouldn't want to x

bellabella

Emmia said:

You'll be subject to the higher rate of SDLT as the smaller property will be your second property - married couples are treated as one unit for this purpose.

Even if the property has never been registered in his name? and the joint property was sold over 5 years ago 

Emmia

bellabella said:

Emmia said:

You'll be subject to the higher rate of SDLT as the smaller property will be your second property - married couples are treated as one unit for this purpose.

Even if the property has never been registered in his name? and the joint property was sold over 5 years ago 

Yes, sorry it doesn't matter if the properties are in different names (and have never had your husband's name associated) as you're married.

Your inherited property is essentially his too, and the new one would also be yours 

bellabella

Thanks Emma that may change our plans as the finances obviously wouldn't stack up to other investments xEmmia said:

bellabella said:

Emmia said:

You'll be subject to the higher rate of SDLT as the smaller property will be your second property - married couples are treated as one unit for this purpose.

Even if the property has never been registered in his name? and the joint property was sold over 5 years ago 

Yes, sorry it doesn't matter if the properties are in different names (and have never had your husband's name associated) as you're married.

Your inherited property is essentially his too, and the new one would also be yours 

lincroft1710

When you do come to sell, rental property will be subject to Capital Gains Tax. Income from the rental will be subject to Income Tax. Any void periods in the rental will mean you will be subject to paying double Council Tax on it.

poseidon1

If you are intent on this rental venture ( despite all the disadvantages and your lack of knowledge), then strongly suggest you joint NRLA (  National Residential Landlords Association )  and using their many resources  get yourself up to speed on all the many different aspects of landlord taxation, accounting , tenant protection, insurance, local authority rules on multi occupancy, to name just a few.

Also understand you will get very limited help from the letting agent for the commission you will be paying them.

sheramber

bellabella said:

As the above says we are looking to rent out our main property which is in my name only (inherited) and are now in the position to downsize to a smaller more economical property to be purchased outright in husbands name only . Now as i have no pension the funds from the rental would become my pension on paper with fees we would be looking at an income of just over 2K per month (London) other than fees and insurances what should i be doing and asking letting agents when they come to look at the property and is there anything i should seriously consider before embarking on this journey. Thanks In advance

iYour  husband will be taxed on the  rental income.

Stubod

Are you sure you want to be a Llandlord???

Have you done any research about becoming a Landlord, or are you assuming it's all "free income"??

Have you read the new upcoming Renters rights bill??

I would strongly urge you to re-consider your plans....