M
MikeW50
New Member
I'm looking into buying a buy to let for the first time. I haven't purchased a property since 1995 so am slightly confused about the Buyer's Packs that were first discussed back in 2004. While all auction properties I've looked at come with a very comprehensive buyer's pack, conventional estate agent properties do not seem to come with a Buyer's Pack beyond the EPC rating. Am I right in assuming that I should make an offer on a property subject to carrying out a solicitor's search and a surveyor's survey regarding structural problems, mining search, mundic etc?
I am intending to finance the buy to let with savings, my son will be contributing around 20% to the cost of the purchase. Assuming he outlives myself and my wife, my son will inherit the property, (the combined value of our main property and the buy to let will be well under the inheritance tax threshold). As my wife only earns a state pension, all the rental income (approx £9k pa) will be paid to her and declared on a self employed/self assessment basis. Would it be best to purchase the buy to let house in my wife's name, joint names of myself and my wife (the same as our main residence) or joint names of myself, my wife and my son. My son currently lives with us and has only ever previously rented property - am I right in assuming if he is a joint owner of the buy to let, he will lose his first time buyer stamp duty discount? This is not really an issue though as it is very unlikely that he will ever purchase a suitable property independently. Does the buy to let need to be purely in the wife's name for her to earn all the rental income or is it possible to buy it jointly and for my wife to be nominated to earn all the income from it?
Looking to the future, and assuming my son outlives us, what would the CGT implications be if he decided to move into the the buy to let property and to rent out or sell our main residence? Alternatively, if he was to sell both the main residence and the buy to let and move to a different area, would he be subject to CGT on the buy to let? Naturally, the buy to let is being bought at pretty much the peak of the market so whether the price will increase dramatically in the next 10 years or so is probably quite unlikely.
Given that the property is being purchased as a buy to let, I assume that stamp duty will have to be paid at a higher rate. Is there a potential loop hole of effectively buying the buy to let for our son to live in initially and then after a few months deciding to letting it out?
Would it be beneficial to set up a company or is it possible to declare the rent on a self-employed, self assessment basis?
I have looked into the Deposit Protection Scheme and mydeposits.co.uk looks relatively straightforward but is there another service anyone can recommend?
Finally, the more I've heard about estate agents from friends that have rented in the past, the keener I am to manage the rental myself - this way I can meet the tenants and am responsible to sorting out any repairs directly myself. Are there any particular websites that attract the best tenants? I am looking to rent to a family with dependable jobs (if there is such a thing, these days!)
Apologies for such a long post, but I'd greatly appreciate all advice from those far more experienced than me.
I am intending to finance the buy to let with savings, my son will be contributing around 20% to the cost of the purchase. Assuming he outlives myself and my wife, my son will inherit the property, (the combined value of our main property and the buy to let will be well under the inheritance tax threshold). As my wife only earns a state pension, all the rental income (approx £9k pa) will be paid to her and declared on a self employed/self assessment basis. Would it be best to purchase the buy to let house in my wife's name, joint names of myself and my wife (the same as our main residence) or joint names of myself, my wife and my son. My son currently lives with us and has only ever previously rented property - am I right in assuming if he is a joint owner of the buy to let, he will lose his first time buyer stamp duty discount? This is not really an issue though as it is very unlikely that he will ever purchase a suitable property independently. Does the buy to let need to be purely in the wife's name for her to earn all the rental income or is it possible to buy it jointly and for my wife to be nominated to earn all the income from it?
Looking to the future, and assuming my son outlives us, what would the CGT implications be if he decided to move into the the buy to let property and to rent out or sell our main residence? Alternatively, if he was to sell both the main residence and the buy to let and move to a different area, would he be subject to CGT on the buy to let? Naturally, the buy to let is being bought at pretty much the peak of the market so whether the price will increase dramatically in the next 10 years or so is probably quite unlikely.
Given that the property is being purchased as a buy to let, I assume that stamp duty will have to be paid at a higher rate. Is there a potential loop hole of effectively buying the buy to let for our son to live in initially and then after a few months deciding to letting it out?
Would it be beneficial to set up a company or is it possible to declare the rent on a self-employed, self assessment basis?
I have looked into the Deposit Protection Scheme and mydeposits.co.uk looks relatively straightforward but is there another service anyone can recommend?
Finally, the more I've heard about estate agents from friends that have rented in the past, the keener I am to manage the rental myself - this way I can meet the tenants and am responsible to sorting out any repairs directly myself. Are there any particular websites that attract the best tenants? I am looking to rent to a family with dependable jobs (if there is such a thing, these days!)
Apologies for such a long post, but I'd greatly appreciate all advice from those far more experienced than me.
