PaulDClark

For those who have rented out thier UK property...

Which mortgage providers have you used? Were there any major pitfalls? Any good agencies about?

I am looking at 120K on a 240K property, with an estimate of rental between 850 - 950 pcm depending on who I talk to...

Cheers

Amazulu

We have several properties rented out, mortgaged with Northern Rock & The Woolich, Natwest are good for buy to let as well. I use a financial adviser, who works through Townends & always seems to get us good deals. By the way, In my experience it is better to use an adviser, rather than going straight to the bank when dealing with buy to let.

PaulDClark

Cheers

Have put my personal advisor on the case, but wanted to double check. He has suggested Northern Rock and Standard Life so far

gld

Anybody who does this needs to know that there is more to this than meets the eye - though there are changes in the new DTA.

If you use an advisor how many advisors know the following....

• the obligation to pay 10% Australian interest withholding tax to the Australian Taxation Office (“ATO�) on any non- Australian (eg UK) mortgage interest.
• there could be a taxable gain on any repayment of foreign (ie non-Australian dollar denominated) borrowings.

Individual twisting and tweaking a situation gets the tax down but it may mean that the buy to let has to change.

Cheers

PaulDClark

• the obligation to pay 10% Australian interest withholding tax to the Australian Taxation Office (“ATO�) on any non- Australian (eg UK) mortgage interest.

*** This disappears on the 1st July 2004 under thr double taxation treaty.

• there could be a taxable gain on any repayment of foreign (ie non-Australian dollar denominated) borrowings.

*** I assume that this means that the debt could reduce in terms of Australian dollars, thereby giving a net gain. However I would have thought that this would be trivial next to CGT.

What this question was really about was the granting of mortgages to expats, who will be letting thier houses out whilst abroad, rather than the taxable position.

Cheers!

teach

If you have a company called Northwood Lettings near you they are very good. You get paid even if the property is not being rented out.


Regards
Sarah

PaulDClark

No, sadly they are not in Kent yet...

http://www.northwoodlettings.co.uk/

Thanks