my mum is moving away, so i was gonna pay her mortgage and live here

  • Filter
  • Time
  • Show
Clear All
new posts

    my mum is moving away, so i was gonna pay her mortgage and live here

    My mum is moving away to leeds, she wants to rent a property up there so incase she doesnt like it, she can move down back down here, she has contents and building insurance as well as her mortgage, she said me and my parter are able to live here if we pay her mortgage off her,

    she wont make no profit on the property. will she have to pay any tax on this, even though shes making no profit on this?

    You and your mother should read the link below, so that you understand all of her legal obligations of being a landlord.

    Your mother may not have to pay any tax on her rental income, but she still has to declare it to HMRC.


      Your mum has a personal allowance of 8105 pounds before 20% tax rate is charged on her remaining income after deducting 8105.

      The taxable profit calculated from renting to you is 12 months mortgage payments minus 12 months loan interest and minus the buildings insurance.


        "she wont make no profit on the property"
        reads that she will not be getting "no profit", therefore she must be getting some

        If you mean no profit
        a) She will make no profit
        b) she wont make any profit.

        It makes a difference to our answers sometimes if information is not precise.


          She probably will be making a profit because you will be paying off some of the capital value of her mortgage - so when the time comes to sell there will be a tiny bit of the property that your 'funds' have paid for.


            She won't make any profit were just paying off her mortgage payment each month


              Originally posted by mollieframpton View Post
              She won't make any profit were just paying off her mortgage payment each month
              Yes, and that mortgage is buying her a house, which is hers to keep at the end. That is why HMRC will allow 'interest' against rental income but not all of the mortgage.

              Let's take this to extremes.

              Mum puts down £10k and buys £100k house with £90k mortgage.

              You pay £535 a month and stay there for 25 years (mortgage amount)

              Allowing for inflation, after 25 years Mum owns a house worth £200k.

              That's £190k (£7,600 pa) profit but you have only paid the mortgage.


                why not just give your mum the cash? and she uses it to pay the mortgage off? it's as if you don't exist. she's hardly going to evict you so no need for an AST.


                Latest Activity


                • Reply to Recent tax return
                  by jpkeates
                  I suspect that you completed the return incorrectly.
                  25-01-2022, 09:30 AM
                • Recent tax return
                  by Ailers
                  Hi, new here, sorry if this has been asked already but I can't find the answer.

                  I have just completed my tax return for 2020/21 as a landlord with a few properties. My income was 22k and my outgoings (maintainance, ground rent, insurance, mortgage payments etc) was 18k. The mortgages are...
                  24-01-2022, 22:42 PM
                • Reply to 50/50 ownership versus rental split
                  by AndrewDod
                  Yes (if you are spouses)
                  Probably wise to use a lawyer
                  CGT not relevant as you can freely transfer between spouses for CGT purposes (even shortly before a sale)...
                  25-01-2022, 08:52 AM
                • 50/50 ownership versus rental split
                  by Deeks67
                  Hi guys , I have recieved some inaccuratre advice ( not from this site ) RE ownership and rental income split . my wife and I have 2 unemcumbered properties which are renting out , the first started renting in Oct 2020 and the second started in July 2021 . Both properties are in joint names 50/50 (...
                  25-01-2022, 06:24 AM
                • Reply to Tax return
                  by jpkeates
                  If it was first let in December 2020, the costs allowable against income prior to that take place on the first day of the first tenancy for tax purposes.

                  So, if you mean can you claim it on a tax return for April 2020 to April 2021, the answer is yes.
                  You can't claim it for this tax...
                  24-01-2022, 21:10 PM
                • Tax return
                  by pchaure
                  New to this, buy to let property got in 2018 but renewing took time and COVID hit. Rented out since Dec 2020. I had Electrical work done completed in 2019, as had no income I had not filled in self assessment. Can I claim it in this tax year?
                  24-01-2022, 19:05 PM
                • Reply to Advice
                  by SouthernDave
                  I started my limited company a year before buying the first property, then bought a second 2 months later, a third 3 months after that, a fourth 5 months after that and so on to where I am now. Our lenders have never said they want a separate company per property. Ive never heard of that, if it were...
                  23-01-2022, 17:40 PM
                • Advice
                  by jhoggard

                  I currently have a property rented out in my own name with a fair bit of equity around 50% LTV this is actually a repayment mortgage which i'm looking to switchover to a interest only. When i do this i'm also taking money out of the property to put towards another which i'm looking...
                  20-01-2022, 14:25 PM
                • Reply to Advice
                  by jpkeates
                  I don't think we disagree.

                  The OP has one property and is looking to buy a second.
                  At that point in that business, lenders will want a company per property.

                  There's a point where that ceases to be the case, when the portfolio gets big enough, or, presumably when someone...
                  23-01-2022, 17:34 PM
                • Reply to Advice
                  by SouthernDave
                  i concur with James, once you get over 4 properties, they consider you to be a portfolio landlord and want to start seeing cashflow forecasts before lending to make sure the company is buoyant. Directors guarantees each time but no limits on number of properties or number of dofferent lenders.
                  23-01-2022, 16:50 PM