Information needed to make a decision

[duckster]

My partner owns a flat and has a mortgage fo 40k which equates to around �200 a month. Instead of us selling the flat next year to move to a family size house i would like to keep it and rent it out. So in effect we would be making money(if it was rented out all the time).
my question is would my Fiancee be able to get another mortgage with me for a house and still keep that one, or it just too much hassle and too many pit falls??

I do not have a mortgage, we have a combined salery of around 40k a year! I am 30 g/f 27

Thanks Duckster

[Oneeyedvic]

I would definitely keep the flat and rent it out. No problems at all with getting another mortgage.

[bednobs]

i think it woud probably be better for you to go and see a mortgage advisor to find out exactly how much you might be able to get

[Im a BusyBee]

I have 2 properties i rent out......it shouldnt be a problem at all - in fact the opposite, as the profit made from rent would be considered as income and in your favour when calculating a new mortgage. The existing mortgage company would need to know that you are renting this out and not living there as your main residence.

[Dassie]

Just remember the taxman in all of this. It's good idea to rent it out as you earn income and the property will appreciate in value. The down side is you will now have to complete an Income tax return each year ( if you don't already ) pay tax on your rental income and if it becomes a second home for one of you then you will face Capital Gains Tax when you eventually sell it. It's best to take out the mortgage in your name so you both "own" a separate property if you can.

[duckster]

dassie,
how much does the taxman take? is it a fixed %

[Dassie]

No. It will depend on your present income level and therefore which tax bracket you have reached but from what you're saying above about joint income, if this is roughly 50/50 then you'll pay 22%, but don't forget you are allowed certain deductions so it won't be on your gross income from letting. I suggest you phone your tax office as they should have a leaflet about rental income.