Best way to buy in my wife’s name?
My wife recently lost her job with the NHS, but we have some cash saved to invest in property. We have one single let already that’s registered in her name. It was first let out early this year.
We want to buy some more, but understand it will be difficult to get a mortgage if she has no income. I don’t want to buy in my name because the rental income will take me into the higher rate tax bracket.
Our mortgage broker has suggested we buy the next property as tenants in common with 99% of ownership with my wife and 1% with myself. This would allow us to you my income in the affordability calculations when applying for a mortgage.
Does this sound like a sensible option? What does everybody else do who’s in this situation?
BM
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Member Since February 2011 - Comments: 3453 - Articles: 286
3:16 PM, 10th April 2018, About 8 years ago
Have you considered what happens if your wife goes back to work or your portfolio builds past your wife’s tax free allowances?
Nearly 80% of all new BTL purchases are now in the name of a limited company.
Member Since June 2013 - Comments: 381 - Articles: 61
3:24 PM, 10th April 2018, About 8 years ago
If your wife already has a BTL she may well qualify for an ‘experienced landlord’ status (depending on the new BTL lender) and there are many of these lenders who allow such landlords to have no / low minimum income for future applications.
Income is of course just ‘one piece of the jigsaw’ and many other factors will contribute to whether a lender offers a BTL mortgage nowadays.
For professional guidance through the new BTL mortgage maze, my Team of specialist Brokers is available via my profile link.
We work hand in hand with your own tax adviser to help you to secure the ost suitable and cost effective BTL mortgage strategy, whether you have one, or one hundred, property(ies).
Hope that helps.
Member Since January 2011 - Comments: 12193 - Articles: 1396
4:15 PM, 10th April 2018, About 8 years ago
Please see my recent article linked below entitled “The best tax structure for landlord newbies”
https://www.property118.com/best-tax-structure-landlord-newbies/
Member Since September 2017 - Comments: 35
10:27 AM, 14th April 2018, About 8 years ago
Just do a 100% to 0% split on Declaration of Trust and complete form 17. You could later switch it back to 50-50% but may attract SDLT depending on value of the property.