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  1. #211
    Not actually Dale Jasper Dale Jasper's Avatar
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    Question for the panel.

    I bought my btl in 2006. .
    I never deducted the cost of setting up the mortgage (2k) in my annual self assessment as an allowable expense as I thought it was a capital expense. I was wrong.
    Can I still claim now on this year’s income return ? (Potentially saving hundreds ) Or is it too late ?
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    • #212
      Resident pedant Triggaaar's Avatar
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      Quote Originally Posted by Renegade1 View Post
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      The flat is worth £160k so you can borrow another £80k for a deposit to buy another property?

      Is this how some people get to own many properties?
      Yes. Although perhaps not another £80k, but certainly a good chunk more, enough for a deposit on another property or two.
      I knew a couple of guys who built up something like 150 properties.
      Indeed.
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    • #213
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      Quote Originally Posted by Renegade1 View Post
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      So you are saying if your interest is for example £200 per month,rather than claiming that full amount against tax due,you can only claim 20% of that?
      No.

      You can set all the interest paid against your income. But you will only get relief on your tax bill at 20% and not the 40% that those in the higher tax bracket claim at present.

      Would probably be a good idea to google tax relief on Buy to Let properties. They will give actual examples.
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    • #214
      Resident pedant Triggaaar's Avatar
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      Quote Originally Posted by Uncle Spielberg View Post
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      You know your stuff and added great value to this thread
      If only I knew enough to get praise like that.
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    • #215
      Resident pedant Triggaaar's Avatar
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      Quote Originally Posted by Shropshire Seagull View Post
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      Also, the point of making over payments on an Interest only mortgage does not, in my experience with Nationwide, actually reduce the capital [principle sum] of the loan. Your account simply goes into credit which will allow you to take a payment "holiday" if you wish, or have the money returned.
      Each month they calculate how much interest you have to pay them. When they make that calculation, do they use the principle sum of the loan, or deduct the credit amount first? If the latter, then you pay less interest, so you pay more tax.

      I suppose it might be possible to ask the lender if they would accept it as payment against capital, but you cannot have an interest only mortgage and treat it as if it were a repayment mortgage [to your benefit].
      What does that mean?
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    • #216
      Resident pedant Triggaaar's Avatar
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      Quote Originally Posted by Renegade1 View Post
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      You have a flat you rent out with a lease of 93 years.To bump that lease up will cost around 36K.
      93 years is a good length of time, where did you get the quote from, I wouldn't expect it to be that much unless it's a really expensive flat.
      To sell and buy a freehold flat will mean you will pay around 36K in CGT.

      Is there another option?
      Big questions, little information. Why do you need to extend it now? Why can't you keep going as is?
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    • #217

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      Quote Originally Posted by Triggaaar View Post
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      93 years is a good length of time, where did you get the quote from, I wouldn't expect it to be that much unless it's a really expensive flat.
      Big questions, little information. Why do you need to extend it now? Why can't you keep going as is?
      It's not my property.The owner wants to leave it to his daughter when he dies and wants to leave it with a long lease.
      The flat is worth around 250K.
    • #218

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      Quote Originally Posted by Triggaaar View Post
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      Yes. Although perhaps not another £80k, but certainly a good chunk more, enough for a deposit on another property or two.
      Indeed.
      Assuming you can borrow another 50k for a deposit on a flat worth 200k.Where does the other 150k come from?
      I'm interested to know how people like those two guys got to build up to around 150 properties.
      How others might do 10/20/30 properties?
    • #219
      Resident pedant Triggaaar's Avatar
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      Quote Originally Posted by Renegade1 View Post
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      It's not my property.The owner wants to leave it to his daughter when he dies and wants to leave it with a long lease.
      The flat is worth around 250K.
      Find out the ground rent and enter the details into an online calculator to find out how much it should cost to extend the lease. £36k sounds way off to me.

      Quote Originally Posted by Renegade1 View Post
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      Assuming you can borrow another 50k for a deposit on a flat worth 200k.Where does the other 150k come from?
      Er, a mortgage

      I'm interested to know how people like those two guys got to build up to around 150 properties.
      How others might do 10/20/30 properties?
      Well it's different now, but in the old days you could get 100% mortgages, and property was not too expensive.
      Hold tight, my man
      He's got the frisbee
    • #220
      Members Uncle Spielberg's Avatar
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      Quote Originally Posted by Triggaaar View Post
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      If only I knew enough to get praise like that.
      You are decent as well
      Spielberg is GOD.

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