Some advice on renting my house

pippyt

Hi im thinking of renting my house in the next few months

few things i have decided to do already

1.im going to go through a estate agents to rent it
2.it will be unfurnished

few questions

1.do i have to change my mortgage to a buy to let one?

2.i understand the inland revenue take 22% of the rent, what from the mortgage\repairs etc.. can i claim back from the inland revenue.

cheers

moneysavinmonkey

1. You do not necessarily have to change to a BTL mortgage. You need to get a 'permission to let' from the lender though if you have a residential mortgage. Depending on your circumstances these are usually granted ok + an admin fee circa £100 will be charged.

2. The inland revenue don't take 22% of the rent... that is a bit overly simplistic! The income from the rent (ie the rent minus outgoings such as mortgage interest, estate agents fees, insurances, professional association fees, 10% wear + tear allowance) is taxed at whatever rate you pay income at.. so that depends on your day job- ie if you are a high rate tax payer or not. You will need to fill in a tax return so maybe best to get an accountant if you aren't sure.

If you want to find out more try the direct gov website - link