Why you need a Buy-to-Let mortgage

A buy-to-let property is a flat or house that you intend to purchase and then rent out to someone else.

You need to arrange a different type of mortgage to the conventional type you would have for your own home.

You should always inform your current lender if you decide to rent out your existing property as this is generally not allowed under a residential mortgage. Your existing lender will advise you of the action you need to take and this is often to convert to a buy to let mortgage. This process is normally very quick and simple, best course of action is to contact an independent mortgage adviser as they have access to all types of plans to suit you.

Most banks and building societies offer buy-to-let mortgages. The rates tend to be a little higher than residential mortgages this reflects risks such as tenants not paying rent.

Buy-to-let property is treated as an investment so is subject to both income tax on rent and capital gains tax on sale. Stamp duty is also payable on purchase.Buy to Let is it profitable?

The majority of landlords recently surveyed said they are showing good returns on their properties even after taxation. With banks and building societies offering such low returns on investment this is not hard to believe.

Can I reduce my CGT bill on sale?

Allowable expenses

You can reduce your CGT bill by deducting the expenses associated with buying and managing your property such as.

1               Stamp duty paid on purchase

2               Solicitors fees

3               Estate agents fees for selling your property

4               Refurbishment costs

5               Surveyors fees