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converting from residential to buy to let mortgate (self cert) - Please advise.

Last post Mon, Jul 28 2008, 12:44 PM by MZ. 2 replies.
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  •  Mon, Jul 28 2008, 12:44 PM

    Re: converting from residential to buy to let mortgate (self cert) - Please advise.

    thats great advise. Thank you . I will do some research into repayment buy to let mortgages. See whats out there. At the moment the financial sector is so tight, it would be interesting to see what kind of offers are available. I'll post back if I have anything concrete. Thanks again

    • Post Points: 5
  •  Thu, Jul 24 2008, 3:15 PM

    Re: converting from residential to buy to let mortgate (self cert) - Please advise.

    Hi,

    The property will be split into percentage terms, for residential use and letting use. You will be taxed(10%) for any extra money you gain from rent, however you can claim this against any costs regarding to your lettings including your mortgage. I'm not sure what kind of mortgage you are applying for, but because of the percentage letting use, you might have to get a repayment buy to let mortgage.You can also claim a percentage of your original capital as a retirement fund,(well, you did say, you were in your 60s).

    Try talking to an accountant. They might advise you more than I have. Because tax system changes all the time. And people at a certain age, allowances can also change aswell. Let alone, being a landlord, there are also regulations to comply too! And a solictor should advise you on that.

    Best Wishes and Good Luck.

    Hope it works well for you?

    • Post Points: 20
  •  Thu, Jul 24 2008, 1:55 PM

    converting from residential to buy to let mortgate (self cert) - Please advise.

    Hi there,

    I have a property with a 15 year interest only mortgate left on it. It is a self cert mortgate. My fixed term is due to end at the end of the month. It is a residential interest only mortgate with 300k left. Property is now currently valued at 950. I have converted the property into several bedsits and in one of the rooms I am the resident. I would like advise converting the mortgage to a buy to let. Will this be an easy process? I am not employed and am 60 years old. My olny income would be from the rent I receive.

    I have several questions which I am unclear about. If anyone can help contribute some answers I would be gratefull.

    1. Would I still go down the path of a self cert application?

    2. because I live at the property and also let other parts out, would this be classed as a commercial mortgate instead?

    3. Would I need to put a deposit down if I go to another lender?

    4. When moving accross to another lender, I do not want to borrow any extra funds, I just want to make it a repayment mortgate so I can continue to pay of the remaining 300 thats left.

    5. My only source of income is the rent so will this be an issue as part of the application?

    Apologies for the long list of questions and also if these questions has been raised repeatedly in the past.

    thanks for the input.

    MZ

    • Post Points: 20