10:23 AM, 14th March 2016, About 5 years ago 7
I was wondering if anybody can offer me some guidance. I left the UK for work just over 3 years ago, and it is most likely that I will return to London sometime in 2020 once my current employment contract ends.
I have 2 properties back home in the UK – one BTL, and one residential (which was my main residence) that I am letting out whilst absent from the country. For years I have been saving like a squirrel and overpaying my mortgages at every opportunity, and now have 125,000 left to pay. By any conservative estimate I presume to have both properties fully paid off by 2020 because both are currently independently profitable (income > mortgage repayment + costs), so I can overpay using both my annual profits plus the money that I send back from my wages abroad.
I have been following the chancellors’ policy changes regarding BTL mortgages and trying to work out my optimal plan of action investment-wise. From my understanding of the situation, once April passes there is very little advantageous investment scope for BTL (as we once knew it) if you have to arrange a mortgage, especially considering the increase in stamp duty.
I had always endeavored to be able to attain a third property… just because that is what you do as a work-driven adult. I can use the excuse that it gives me the option to then pass on one to each of my two young children should they reach adulthood and be at risk of being frozen out of the market.
What I am wondering is – what am I to do with any excess money should I manage to clear my mortgages before 2020 whilst still being positioned abroad? Is there any mathematical benefit to buying that third property as a BTL with a mortgage? Or should I consider buying a third property in the UK only if I can ever afford to do so outright or by putting down a really really big deposit?
I would not know how else to invest any money that I earn…. Pensions are not something I have ever bought into, stocks or shares – no thanks. Property is all I ever believed in, but now the lights have been dimmed to the point where I am a bit stuck.
Also, I have been using an accountant for the last 7 years to fill in my tax returns. I send him my mortgage statement and bank statements with proof of rental amounts, and he apportions the income between my wife (as joint owner) and myself, I get sent a tax bill, and a bill for his fee.
However, because over the last 3 years there is no added interference of earned salary or other income (like I used to have when I lived in the UK) is this something that I should now easily be doing myself via self assessment?
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