RH33 Posted January 9 Share Posted January 9 Can you remortgage current property to release the cash needed to cut out second home situation? 1 Quote Link to comment Share on other sites More sharing options...
coprolite Posted January 9 Share Posted January 9 3 hours ago, 'WellDel said: Looking for some advice on owning a 2nd property and tax implications etc, if anyone on here has any experience. Long story short(ish). Daughter is currently living in a rented flat but the owner lives abroad and the letting agents are cnuts, with a whole host of issues needing resolved that they constantly drag their heels on. Rental prices are getting eye-watering and she/we are loathe to line the pockets of greedy landlords for properties that are nowhere near worth the money. She made some silly financial decisions while a student that makes it difficult for her to get a mortgage just now, but with ours having only a couple of years to run we are considering buying a flat for her in our name, which she can take on once she is able to gain a mortgage in her own right. It wouldn't be buy to let, I know from reading a few articles that you can obtain a 2nd mortgage to allow family etc to live in it for no financial gain, but have no idea about any taxation or other implications involved in owning a 2nd home. Also read recently that some local authorities looking to start applying higher Council Tax on 2nd homes. If she's paying you rent to cover/ mitigate the mortgage you'll have property income for income tax. You should be able to get relief for the interest part of your payment but only at basic rates. If you are a higher rate payer that will cost you. Might be able to move things between you and your wife? If she's not paying any rent then no problem for income tax. 1 Quote Link to comment Share on other sites More sharing options...
'WellDel Posted January 9 Share Posted January 9 2 hours ago, RH33 said: Can you remortgage current property to release the cash needed to cut out second home situation? Another option to explore, cheers. 0 Quote Link to comment Share on other sites More sharing options...
die hard doonhamer Posted January 9 Share Posted January 9 Finally got an acceptable offer on my house, the 4 months on the market has felt very long. Now for the stress of mortgage applications and packing up a house! 2 Quote Link to comment Share on other sites More sharing options...
Left Back Posted January 9 Share Posted January 9 3 hours ago, RH33 said: Can you remortgage current property to release the cash needed to cut out second home situation? Regardless of how you finance it if you buy a second house in your name it’s still classed as a second home for tax purposes. If you then gift it to a relative (other than your spouse) to get around the landlord stuff you’re then into inheritance tax taper relief. Basically this means HMRC want a cut from inheritance tax if you die within 7 years (subject to thresholds). 1 Quote Link to comment Share on other sites More sharing options...
RH33 Posted January 9 Share Posted January 9 1 hour ago, Left Back said: Regardless of how you finance it if you buy a second house in your name it’s still classed as a second home for tax purposes. If you then gift it to a relative (other than your spouse) to get around the landlord stuff you’re then into inheritance tax taper relief. Basically this means HMRC want a cut from inheritance tax if you die within 7 years (subject to thresholds). Ah, didn't think of that, was just thinking way to raise the cash. 0 Quote Link to comment Share on other sites More sharing options...
Loonytoons Posted January 10 Share Posted January 10 Young lad has had his car insurance cover cancelled. He's had the policy near 8 months and they just recently chased him up for my licence my wife's licence and his v5. No reason given for the request, he emailed off the info yesterday, which was the due date, they cancelled it today. 0 Quote Link to comment Share on other sites More sharing options...
TxRover Posted January 10 Share Posted January 10 5 hours ago, Loonytoons said: Young lad has had his car insurance cover cancelled. He's had the policy near 8 months and they just recently chased him up for my licence my wife's licence and his v5. No reason given for the request, he emailed off the info yesterday, which was the due date, they cancelled it today. Quite the pisser, since a cancellation has to be reported going forward. I believe they are supposed to give 7 days+ notice, however, not sure if that's law. Important to get from the company the justification for cancellation, and then possibly appealing it. Has he just received some penalty points? 0 Quote Link to comment Share on other sites More sharing options...
Loonytoons Posted January 11 Share Posted January 11 14 hours ago, TxRover said: Quite the pisser, since a cancellation has to be reported going forward. I believe they are supposed to give 7 days+ notice, however, not sure if that's law. Important to get from the company the justification for cancellation, and then possibly appealing it. Has he just received some penalty points? Nah. He called them and they reinstated his insurance. Reason given was a mixup of starting date of the policy...8 months ago! 0 Quote Link to comment Share on other sites More sharing options...
TxRover Posted January 11 Share Posted January 11 1 hour ago, Loonytoons said: Nah. He called them and they reinstated his insurance. Reason given was a mixup of starting date of the policy...8 months ago! That would have me looking around for my renewal, but glad to here it got straightened out! 1 Quote Link to comment Share on other sites More sharing options...
Leith Green Posted January 17 Share Posted January 17 3 minutes ago, throbber said: I have 2 parts to my mortgage as I moved house during a fixed term and had to take a second one out to cover the difference between property values. One part had gone up £170 and if interest rates stay same by July the other part will go up £300 + so will be paying over £500 a month extra and that’s just dead money because of the interest being paid. Im not entirely convinced this is good news. Just pay it off, you must have a fortune stashed away from those OnlyFans fees................ 1 Quote Link to comment Share on other sites More sharing options...
coprolite Posted January 17 Share Posted January 17 10 minutes ago, throbber said: I have 2 parts to my mortgage as I moved house during a fixed term and had to take a second one out to cover the difference between property values. One part had gone up £170 and if interest rates stay same by July the other part will go up £300 + so will be paying over £500 a month extra and that’s just dead money because of the interest being paid. Im not entirely convinced this is good news. It's not good news at all obviously but it should be a minor consolation that the value of the capital balance has shrunk faster than it would have otherwise because of higher inflation. 0 Quote Link to comment Share on other sites More sharing options...
ICTChris Posted January 17 Share Posted January 17 Throbber, I will pay to use your house as a meth lab / amateur porn studio. This will solve all your financial problems. DM me for details. 0 Quote Link to comment Share on other sites More sharing options...
ICTChris Posted January 17 Share Posted January 17 8 minutes ago, throbber said: I think you should take this thread more seriously. I think you should take my offer more seriously. 3 Quote Link to comment Share on other sites More sharing options...
Leith Green Posted January 17 Share Posted January 17 21 minutes ago, throbber said: This has come just as we have stopped having to pay child care as well which is such glorious timing. Thats a never ending cycle, sadly - just as we thought we had got through the worst of the mortgage costs, our son goes to Uni. No fees, as he is in Glasgow, but the accommodation costs are fucking ruinous. Fairly sure I will only start to feel financially secure about 2 weeks before I feel the grim reapers tap on my shoulder................... 0 Quote Link to comment Share on other sites More sharing options...
itzdrk Posted January 17 Share Posted January 17 On 09/01/2024 at 13:53, 'WellDel said: Thanks for your reply, lots of good info that will help going forward. My point on mortgage for no gain came purely from a quick search on the Halifax mortgage calculator which gave the option of buying a 2nd home, then when it came to whether it would be buy to let, an info box instructed you to select 'No' if you were planning to let family live in it. I know that's at the most simplistic level of the overall purchase and responsibilities involved, and that taxes etc would be involved, but led me to believe there is a specific mortgage tool for this purpose rather than btl. The fixed rate on what's left of my own mortgage ends in the coming month or so, think I'll set up an appointment with a mortgage adviser in branch and discuss what our options are. Given her low credit rating, perhaps a guarantor or joint mortgage of sorts with my daughter could be an option? A lot to consider. Thanks again for your help. I was in a similar situation with fucked finances and a low score but a family wanting to help sort me owning a flat. I spoke to a mortgage advisor and they said it was unlikely I'd be accepted but let's credit check me against the main 3 firms anyway to see what comes up and we can either make a plan to sort it or somehow it'll surprisingly be fine. Against all odds it was fine so from my experience is it's worth just giving it a go. 1 Quote Link to comment Share on other sites More sharing options...
Sergeant Wilson Posted January 17 Share Posted January 17 2 hours ago, ICTChris said: Throbber, I will pay to use your house as a meth lab / amateur porn studio. This will solve all your financial problems. DM me for details. I take it you'll be bringing your own people, rather than the incumbents? 1 Quote Link to comment Share on other sites More sharing options...
jimbaxters Posted January 17 Share Posted January 17 8 minutes ago, Sergeant Wilson said: I take it you'll be bringing your own people, rather than the incumbents? Add a couple of hyphens and you could call the first movie that. 3 Quote Link to comment Share on other sites More sharing options...
Salt n Vinegar Posted January 17 Share Posted January 17 3 hours ago, throbber said: Exactly. My kids are only 6 and 3 so it’s only going to get worse until I die and even then I won’t be able to pass anything on to my children. My younger lad and his partner are trying to buy their first property, in the Glasgow area. He works in the city centre. He was born and brought up in the Edinburgh area and hasn't a scooby about areas of Glasgow. He keeps sending us details of properties in, shall we say, some less "desirable" areas. In Star Trek terminology, so popular on these boards () some of them are in "shields up, arm phasers, load photons" territory. So, despite both of us having retired years ago, and looking forward to a land of milk and honey, foreign holidays aplenty, etc, it looks like the Bank of Mum and Dad will be raided pretty soon! Wouldn't have it any other way. It's what parents are for IMO. 1 Quote Link to comment Share on other sites More sharing options...
TxRover Posted January 17 Share Posted January 17 4 hours ago, throbber said: I have 2 parts to my mortgage as I moved house during a fixed term and had to take a second one out to cover the difference between property values. One part had gone up £170 and if interest rates stay same by July the other part will go up £300 + so will be paying over £500 a month extra and that’s just dead money because of the interest being paid. Im not entirely convinced this is good news. Well now, the economists would point to the positive knock on effects from your payment interest…more income for the bank, increased profits for the bank, improved dividends for bank share holders…you know, wealth transfer from you to the rich. The good news is rates are already down, and forecast to be down near 4% by year end (optimistic buggers, those economists), so especially if you are getting close to 40% equity yet (possible with value increases considered), a 2-year deal now might result in an ability to seek a more favourably lower rate in late 2025/early 2026 father than locking in for longer 0 Quote Link to comment Share on other sites More sharing options...
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