Allow Landlords to evict tenants where there are 14 days rent arrears14:34 PM, 1st October 2020
About 3 weeks ago 97
I am a new landlord and have recently started renting out a property I own outright, I also have a residential property which is mortgaged and can’t help, but feel I may be able to arrange my finances in a better manner, but I’m unsure how to go about obtaining good advice.
The residential property is worth around £135k, with a £109k mortgage at 2.99%
The BTL property is worth approx. £100k with no mortgage and generates £363 per month
I am a 20% tax payer, starting to near the 40% bracket, however my wife has some tax free allowance and the whole 20% bracket available, so I am looking into switching the beneficial interest in the BTL property 99/1 in her favour. My understanding is that the new tax rules should not affect 20% tax payers.
Would there be any advantage in re-mortgaging the rental property and using the capital to pay down the residential mortgage? would this offer any tax benefits for example?
Or alternatively should I consider taking equity out of the rental property to purchase a 2nd BTL?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More