BTL property, wife's property or both our property?

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    BTL property, wife's property or both our property?

    Hello,

    First off appologies for joining and going straight in with a question. I promise i will try my best to positively contribute in the future.

    My wife and i are in the process of remortging our home as a BTL and purchasing a new home to live in. The BTL is in my wife's name. I am the major earner and next year i will probably earn just over 50k. My wife only earns a few k. Will it be better for tax purposes to leave the house which is to become a BTL in her name or add my name to the mortgage as well?

    Many thanks in advance for any replies. Appologies for my ignorance we are newbies!

    #2
    Be aware of sdlt which is charged at extra 3% if the property buyer already has an existing property registered under his/her name.

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      #3
      Thanks Gordon, yep we are aware of that. I was thinking about the amount of tax we would oay going forwards and whether I would pay a lot more due to my extra earnings if my name was on the BTL.

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        #4
        Would your wife be able to get the mortgage in just her name?

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          #5
          We are in the process of sorting out mortgages now. The broker has given us the option of continuing in her name (but changing it to BTL) or adding my name so I assume she can.

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            #6
            If your wife has the property in her name only and is the only mortgagee, she could receive all of the rental income and offset all of the interest cost against the income.
            And, from the sound of it, pay basic rate tax.

            If you receive income and are on the mortgage, you'll be taxed at the higher rate and will only be able to offset your half of the interest at the basic rate of tax.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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