Claiming Interest on SA

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  • King_Maker
    replied
    Originally posted by ssingh View Post
    Hi,

    Thanks for your reply. Just for clarification. I am trying to release capital in my first BTL (which is fully paid up) and use the money as a deposit to buy a second BTL.
    If I give you some example figures:
    1. First BTL - on this I take out a BTL mortgage for say £50,000 to release capital.
    2. I use the £50,000 as a deposit on a second BTL taking out another BTL mortgage on this second property for the balance.
    I know have two BTL mortgages, on the first and second properties.
    Both will remain as rental properties.
    Both should be deductible from the rental income.

    Leave a comment:


  • jpkeates
    replied
    Both should be allowable.

    There is a limit to the mortgage interest that can be claimed on the existing property, which is limited to a mortgage on the original value when brought in to the business.
    If it cost £100k a few years ago and you mortgage it at £150k, only the first 2/3rds of the interest is allowable.

    Leave a comment:


  • ssingh
    replied
    Hi,

    Thanks for your reply. Just for clarification. I am trying to release capital in my first BTL (which is fully paid up) and use the money as a deposit to buy a second BTL.
    If I give you some example figures:
    1. First BTL - on this I take out a BTL mortgage for say £50,000 to release capital.
    2. I use the £50,000 as a deposit on a second BTL taking out another BTL mortgage on this second property for the balance.
    I know have two BTL mortgages, on the first and second properties.
    Both will remain as rental properties.

    Leave a comment:


  • MisterB
    replied
    if both properties have btl mortgages and are rented out, then yes. if this is a scam to rent one and live in the other then no!

    Leave a comment:


  • King_Maker
    replied
    What is the purpose of the 2nd BTL mortgage?

    Leave a comment:


  • ssingh
    started a topic Claiming Interest on SA

    Claiming Interest on SA

    Hiya,

    I currently have a BTL on which I have no mortgage.
    I want to re-mortgage this property (Interest Only) and buy another BTL. I will also be taking out another BTL mortgage on the new property.
    My query is, on my SA can I claim back the Interest for both properties against my rental income?
    Any advice would be much appreciated.

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