New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About A week ago 75
If you increase your mortgage loan on your buy-to-let property you can also treat interest on the additional loan as a revenue expense, but only up to the capital value of the property when it was brought into your letting business.
You purchased a buy-to-let property for £120,000 with a mortgage of £90,000 and let it to a tenant straight away.
3 years later the property is valued at £150,000 and you increase your mortgage on the property to £115,000. All of the interest on the mortgage can still be claimed as a revenue expense as the loan doesn’t exceed the initial £120,000 value of the property when it was introduced to your letting business.
If I have no other borrowings, does this mean I can’t claim interest on the £30,000 deposit until I increase borrowings?
But what if I have a mortgage on my main residence, I could have paid £30,000 off main residence mortgage, but instead used for buy-to-let deposit. So as I now have borrowings can I claim same interest rate charged on my main residence?
Keeping it simple, lets assume Section 24 does not exist.
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