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Showing results for tags 'Just rent it out innit'.
Haven't seen this one on the forum so sorry if I've missed it. Telegraph case study - young guy on good money in London, owns a flat in Southampton which he rented out when he moved up to London. Renting in London but trying to work out whether he can buy anywhere while keeping the first flat. "Mr Hayes wants to know how to make the best of the property he owns [in Southampton] so he can buy a flat in London. However, he is faced with the dilemma of whether to overpay the mortgage or to save towards a deposit. He is also wondering whether setting up a company may reduce the amount he pays in tax. Ideally, he’d like to hang onto the Southampton flat as “future investment" which he estimates is currently worth between £160,000 and £170,000. He has let it out since February 2016 and his tenant pays £900 per month. This covers his monthly mortgage repayments of £535. He has £100,000 left to repay at 4.19pc and two years remaining. A £5,000 early exit fee applies." The experts can't bring themselves to state the bleeding obvious i.e. "Sell your flat", but it's worth a read of what they say to see it gradually sinking in that the new rules make holding on to that "investment property" less attractive. Link: http://www.telegraph.co.uk/personal-banking/mortgages/im-29-and-on-66k-how-do-i-make-the-most-of-my-let-flat-so-i-can/