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Financial Advice

Started by JPark, April 17, 2024, 02:19:20 PM

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JPark

I'm not a landlord but seeking some advice.

We live in Manchester, my wife and I are looking to move into a new area in the next year, we have some equity in our current property but will have around 100k remaining on the mortgage. We have saved up a decent deposit to go in our next house, we're considering renting out our current house as a long term investment. Does anyone recommend any financial advisors that specialise in property. We're in the higher tax bracket so want to explore whether it's worth transferring our current property into a limited company or keeping it in our person names and the different tax and stamp duty implications of doing this either way and how much we will be able to borrow for our next place.

thanks in advance anyone who is able to help.

Hippogriff

I paid down the mortgage on my first home completely before I started to mess around with letting property. I was then starting that escapade with a blank slate, effectively.

I've never had an interest-only mortgage.
I've only ever had BTL mortgages with high deposits to reduce the rates.
Every rent is at least £200 over the mortgage payment (some much more).

Therefore - with my inclination to keep things pretty simple, and also separated - I've never needed a Financial Advisor. I read your plan here and I worry.

Simon Pambin

Quote from: JPark on April 17, 2024, 02:19:20 PMI'm not a landlord but seeking some advice.

My advice: stay not a landlord. :)

From a practical point of view, how far away from your existing home are you planning to move? Is it going to be easy to visit and take care of any problems, or are you going to rely on finding a good letting agent?

It would be worth seeing a financial adviser anyway but don't necessarily nail your colours irrevocably to the landlording mast, especially with the legislative changes that are on the horizon. For my money, I'd probably use the equity from my old home to reduce the amount I'd need to borrow for the new one, and then use some of the free cash flow from that to increase my pension contributions and get relief at 40% but your priorities may will be different, and that's where a good financial adviser comes in. The firm we use are part of Wren Sterling now and they do a decent job.