Renting my house out ??

Question

i have been forced to buy my partner out of our property .

well not forced,but to stop headache and heartbreak ,ive remortgaged.in order to keep the family home , i have to rent somewhere else cheaper .i am now wanting to rent the house out .the payments are £638 per month interest only mortgage.

i am only going to get £600 per month rent ,so im runninga loss of £38 per month .with this being interest only am i liable for tax ,do i have to register anywhere as a landlord??

what is this deposit thing ,trust fund ?? would a tenancy agrremnt pack ,be suitable from whsmiths ??

thanks for looking .

Answer 1

No you don't have to register anywhere.

Yes you are liable for tax on any profit you make.

Get a deposit incase the people you let to do a runner.

Yes a tenancy agreement would be a good idea.

You need to notify your lender and insurance company that you are letting out.

Answer 2

come here

http://www.loanssearchcentre.blogspot.co...

Answer 3

Request consent to let from your mortgage lender and notify your insurer that the property is being let.

You do not need to notify the revenue yet but you will need to include details of your income and expenditure on the property on your next tax return. You can net off the mortgage interest and the cost of repairs against the rent received.

Do not use a tenancy agreement from WHSmith - use a solicitor and have the tenant pay half the cost of drafting.

Go to www.mydeposits.co.uk for details of the insurance-backed deposit scheme, and www.computershare.co.uk for details of the stakeholder scheme. If you take a deposit from a tenant and fail to protect it with one or other of these schemes then you will not be able to bring possession proceedings against them.

Answer 4

You need to talk to the inland Revenue, I think you will find that your £600 a month rental income from the house will be considered as 'income' by the Inland revenue and you will have to pay income tax on it as is it was an extra £3200 a year salary. So unfortunately your 'loss' could be a lot bigger than you anticipated.