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    • Abz12
    • By Abz12 13th Sep 17, 8:52 PM
    • 182Posts
    • 172Thanks
    Buy to let mortgage
    • #1
    • 13th Sep 17, 8:52 PM
    Buy to let mortgage 13th Sep 17 at 8:52 PM

    I'm after some advice please.

    I am due to complete on my first house on the 29th September and have been given a fortunate opportunity of purchasing my grandparents house for a knocked down price. It's worth 140-150k and they are offering it to me for 100k. My questions are this;
    - how easy would it be to get a buy to let mortgage with a spk deposit so soon after purchasing my house?
    - what are the implications of having a buy to let mortgage? Stamp duty wise and extra taxes etc

    Thank you
    Total debt jan 2018 - 6,077.36
Page 1
    • amnblog
    • By amnblog 13th Sep 17, 9:59 PM
    • 10,649 Posts
    • 4,215 Thanks
    • #2
    • 13th Sep 17, 9:59 PM
    • #2
    • 13th Sep 17, 9:59 PM
    Q1 not easy, but possible ( unless you expect your grandparents to live there)

    Q2 implications are numerous and best explored with an accountant in detail
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • kk20
    • By kk20 14th Sep 17, 9:46 AM
    • 122 Posts
    • 42 Thanks
    • #3
    • 14th Sep 17, 9:46 AM
    • #3
    • 14th Sep 17, 9:46 AM
    you don't say which country as England, Wales and NI will let you have up to 125k stamp duty free.

    Taxes will depend on if you have "income" from the house. You will still need to complete (at a minimum) self assessment each year even if it is a nil return. It is wise to do so anyway as you can offset the mortgage interest (at a minimum) just in case you rent in the future.

    BTL soon after your own mortgage is possible, but as always it will depend. If you aren't charging your grandparents rent then you might raise some alarm bells. Other vendors don't like long term tenancy agreements - one which your grandparents would "inherit" with the property. This has changed somewhat in the previous year but some mortgage companies didn't like non assured shorthold agreements.

    If your grandparents are moving out then this changes the landscape and opens up more possibilities. Depending on trust you could (tax implications aside for the moment) look at a "gentlemans agreement" on buying the house for 110k and them giving you 10k up front as a deposit (again assuming that they are friendly offering a 1/3 reduction on a house).

    Think long an hard before having a home that family will be "renting" from you. the long term implications are not to be dismissed. What if you get into debt and need to sell? Your own family gets ill and you need the space? That is a discussion for elsewhere though.
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