I bought a flat in 2003, then in 2010 bought a house and moved into the house. The sale of the flat fell through and I was unable to find another buyer. After 6-months paying for both the flat and house while looking for a buyer, the outgoings proved too expensive to sustain, so I had no choice but to rent out the flat until the market for selling flats in my area improves.
My original mortgage was secured on both the house and flat, this gave me a good rate as my LTV ratio was <50%. This year I remortgaged but the new lender refused to secure the loan on both properties and instead preferred to have the loan secured on only the house, resulting in a LTV ratio of 70% and a poorer rate.
Until the market improves, I figure I have a potential tax bill for the rental income. Will this be treated as an investment/income, as I've lost a lot of money on this already. By the time I eventually sell the flat I'll still be out of pocket despite the rental income.
My mortgage is £1600pcm and the rental income £595pcm.
My original mortgage was secured on both the house and flat, this gave me a good rate as my LTV ratio was <50%. This year I remortgaged but the new lender refused to secure the loan on both properties and instead preferred to have the loan secured on only the house, resulting in a LTV ratio of 70% and a poorer rate.
Until the market improves, I figure I have a potential tax bill for the rental income. Will this be treated as an investment/income, as I've lost a lot of money on this already. By the time I eventually sell the flat I'll still be out of pocket despite the rental income.
My mortgage is £1600pcm and the rental income £595pcm.
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