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Buy to Let for Non Taxpayers

JohnnieD1
JohnnieD1 Posts: 2 Newbie
in House buying, renting & selling
Hi, I am currently researching into Buy to Let. As a non taxpayer (with capital for deposit and good level of income from my wife), is there any reason I would not put everything solely in my name? Is there a flaw in this?
«1

Comments

  • westernpromise
    westernpromise Posts: 4,833 Forumite
    2 names = 2 allowances of everything.
  • kingstreet
    kingstreet Posts: 39,415 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No income = no mortgage.

    Since the PRA changes in January, a personal affordability check is carried out on all BTL applications even when the rental income calculation determines the borrowing level.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • theartfullodger
    theartfullodger Posts: 15,930 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    JohnnieD1 wrote: »
    Hi, I am currently researching into Buy to Let. As a non taxpayer ..............
    A landlord may pay at least 10 taxes.
    http://www.landlordzone.co.uk/forums/showthread.php?49095-How-many-taxes-can-a-landlord-have-to-pay
    Think you'll find you do pay tax (Council tax, Insurance tax, fuel duty, VaT etc etc etc..)


    As said, no income above income tax limit, probably no mortgage: If you want mortgage in joint names, as I understand it, that means property in joint names...
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    You would have to buy the property for cash without a mortgage. You won't get a mortgage because you don't earn anything.
  • teddysmum
    teddysmum Posts: 9,533 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You would be relying on the rent income covering the mortgage, but this could be severely reduced by large maintenance costs,damage by tenants, voids and cost to remove reluctant tenants. A mortgage company would not want to take the risk of your inability to pay them .
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    theartfullodger wrote: »
    A landlord may pay at least 10 taxes.
    http://www.landlordzone.co.uk/forums/showthread.php?49095-How-many-taxes-can-a-landlord-have-to-pay
    Think you'll find you do pay tax (Council tax, Insurance tax, fuel duty, VaT etc etc etc..)


    As said, no income above income tax limit, probably no mortgage: If you want mortgage in joint names, as I understand it, that means property in joint names...


    Tenant pays council tax.
  • JohnnieD1
    JohnnieD1 Posts: 2 Newbie
    Cheers - would an affordability check not show income in a joint account? To clarify - as with other investments in my name - my wife has no desire to have a BTL in her name. I would feel that the changes in taxing of income from BTL will become the difference between profit and loss, over the next few years.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    JohnnieD1 wrote: »
    Cheers - would an affordability check not show income in a joint account?

    You don't think a lender is going to ask you what your income is? That's yours, not your wife's. If the house and mortgage were to be in part or whole in her name then her income is relevant, but as neither of those things are true then I can't see why they would take her income into account.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Crashy_Time wrote: »
    Tenant pays council tax.
    Not during voids.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Penitent wrote: »
    I'm also pretty sure theartfullodger was responding to the OP referring to himself as a "non taxpayer" by listing taxes that he currently pays, rather than listing things a landlord would be expected to pay (since he said "you do pay tax", rather than "you would pay these taxes").


    A successful landlord shouldn`t be paying council tax.
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