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Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Can we get a buy to let mortgage to move into at a later date, and avoid stamp duty?
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The additional stamp duty may be scrapped in 2-3 years. So I would just stick with original plan. If it's not, then 3% is small percentage in the big scheme of things- just put up with it and same yourself worry and headaches.0
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Cornucopia wrote: »Assuming that you own the existing property in your sole name, then the plan looks feasible to me - certainly beyond the level where you could ask a professional without looking silly. A specialist broker may be required to address AdrianC's point about your OH not being a homeowner at the point of the BTL application.
Don't worry about Guest101's comments re: becoming a Landlord. Those are part of a generally grumpy attitude to LLs that persists amongst some FMs. - Huh? I'm not anti landlord in the slightest. I'm simply talking about some of the very basic things and giving fair warning. Done in good faith, with respect to tenants and with knowledge of the (extensive) scope of the rules, it's well within the capabilities of the average person. - of course it is, the point is the OP hasn't done any research at all. It's no different to me considering performing open heart surgery, I mean I know nothing about it, but hey why not.
If there is an issue with the plan, it's likely to be the requirement to pay 40% Income Tax on the rental profit (including the additional amounts now required on account of the reduced entitlement to tax relief on mortgage payments). - Hmm that was one of my comments?
There should be no issue in reverting the BTL mortgage to residential as long it's consistent with the terms of both mortgages.
Anyway I'm not looking to argue0 -
I'm simply talking about some of the very basic things and giving fair warning.
You did kind of presume that the OP (or rather, his OH) had no experience, though. More generally, I'm not sure that going around giving other FMs "fair warning" about things is going to win friends and influence people.of course it is, the point is the OP hasn't done any research at all. It's no different to me considering performing open heart surgery, I mean I know nothing about it, but hey why not.
It's really not anything like Heart Surgery. For a start, that is a life-and-death situation and requires years of training and recognised qualification. You may hold the (valid) view that being a LL should require similar strictures, but we are dealing with the situation in the here and now, where it doesn't.0 -
No it doesn't, however the OP is still liable to a high degree, and the fact that those requirements don't exist is at least partially why so many landlords end up losing out.Cornucopia wrote: »You did kind of presume that the OP (or rather, his OH) had no experience, though. - because there was no mention of it? "I'm thinking of starting a mechanics workshop" - question one should always be, well are you a mechanic. More generally, I'm not sure that going around giving other FMs "fair warning" about things is going to win friends and influence people. - I'm not here to win friends, I'm simply saying that research is important. There are literally hundreds of threads of Landlords on this forum who are or have been sued by their tenants, or taken to court by HSE, Local Authority or even CPS. Again if I'm starting a business, I'd appreciate someone saying - oh btw there's serious legal implications, so you should do your research
It's really not anything like Heart Surgery. - how do you know I'm not a surgeon, you've assumed it.... For a start, that is a life-and-death situation and requires years of training and recognised qualification. - often giving an extreme example can help highlight the inadequacies faced You may hold the (valid) view that being a LL should require similar strictures, but we are dealing with the situation in the here and now, where it doesn't.0 -
are you in anyway qualified to be a landlordYes, I can name several on this forum. They are experienced and knowledgeable and fair. They did the research and provide good service for their tenants.
Even these experienced landlords were new landlords once. Get a grip!LBM-November 2019 - Total Debt £28,000/now £1500 1 more payment left!!!0 -
Hey Guest101. Careful! Or I'll be welcoming you to the Two Infractions Club soon.....!0
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dirtycredit wrote: »Even these experienced landlords were new landlords once. Get a grip!
Indeed they were, and if they posted as new or potential landlords now, I would ask them "Do you know anything about this?"
You don't have to be a Landlord to know what is required.
(here's a hint, I'm not a landlord, but I'm more qualified than most who post on here having 'accidentally' signed a tenancy, or 'unintentionally forgotten' to provide x, y or z - If you are considering starting a business, the first question should be, can I do this? Do I have the knowledge to make this work? and then, is it financially viable?)0 -
I'm a tenant of an accidental landlord - no protected deposit, no gas safety checks ever (been here 7 years), house has been sold within the landlord's family and I have a new landlord but no formal notifications given.
I'm going to be giving notice in a few weeks time and still haven't quite decided how to play it. For now my thinking is that if the deposit is returned in full and immediately then I'll just walk away, but any talk of need for professional cleaning and the landlord is going to be in for a very, very nasty shock.0 -
Research has many aspects, the legalities & responsibilities of being a Landlord are important but so is the financial viability, no rules on which order they're done (as long as before you actually take the plunge!)
Tax evasion is doing illegal activities to hide from liabilities. This is tax avoidance at worst, which is perfectly legal.
I agree technically fiance can buy property alone, without the 3% surcharge. When you marry, both properties will effectively be joint but there would NOT be a SDLT surcharge applied at this point. However I think you will face issues with
1. Fiance getting a BTL mortgage with only 20% deposit and not already being a homeowner. This will reduce the pool of lenders, so she won't get the best interest rates.. so factor the extra interest in the costs compared to just paying the SDLT
2. You'd likely have to declare your contribution to the deposit as a gift to satisfy mortgage lenders, but then have no protection to recover this if things go pear shaped between you.
3. Few lenders will consider a gifted deposit from someone living in the property, so again smaller pool to choose from so higher interest paid.
4. If you did get a lawyer to put in some agreement that you recover your contributions (unlikely) then you'd have a beneficial interest in the property.. which is enough to trigger the extra 3% SDLT. Then not paying it becomes tax evasion = illegal.0
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