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Paying for students!!
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Apart from areas there are some other things to consider ( which you may already know about) Obviously the house would be well-maintained because you'd want to ensure your own daughter's comfort but if you'll be letting a couple of rooms off to other students you'll need to make sure you also comply with all current safety regs,including annual gas safety certificates and appropriate fire safety precautions, plus you'll need LL insurances. You can get discounts on premiums if you join a local or national landlords' association (plus lots of useful advice) and it would probably be best to check out the local council's housing department on what constitutes an HMO before deciding what size property to buy.
Check out www.landlordzone.co.uk for lots of useful info plus here:http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/LettingYourHome/DG_4001391
You could also check out the HMRC website for yout tax obligations - search for SA105 Land & Property pages/notes which will give you guidance on what can be offset against tax and you will need to register any deposit taken with one of the three schemes - see here: http://www.direct.gov.uk/en/TenancyDeposit/index.htm
If you are going to buy, look carefully at the different ways of setting things up: you can be the LL/mortgagee, which means that there will be Capital Gains Tax liabilities if and when you sell up ( owning in joint names is useful here) but the advantages are that you deal with the Tenancy Agreement and any disputes with tenants rather than your daughter having to. Alternatively, the property is bought in your daughter's name and she takes in a couple of paying lodgers & makes use of the reliefs afforded under the Rent a Room scheme,and as it's her main residence there would be no CGT liability. The scheme allows you to receive £4,250 a year tax-free, however you also need to look at the fact the that under RaR you can't claim any further expenses arising from the letting and the mortgage needs to be one that allows you to take in paying lodgers.0 -
I did have a couple of appropriate pages bookmarked and will post when sorted through and found them!0
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