RA052824

A bit off topic i know but does anyone know about propery laws?

I'm thinking about getting myself a morgage on a one bedroom flat and then renting it out.

Obviously this is against the law as there was buy-to-let morgages but i can't see it being to hard to get a place rented out off your own back.

What would happen if i was to get caught out and is it easy to get caught out? Would you just get a big tax bill through???

Iain Mac

The kind of mortgage you have doesn't make it illegal and has nothing to do with the tax you pay though it will be hard to show mortgage interest as a cost to offset against rental income when you are claiming to live there. If you don't declare the income and get caught, the penalty will be the same as for concealing any other taxable income.

If you get a standard mortgage then sublet, you are in breach of your agreement so the lender is entitled to demand immediate repayment of the loan (and possibly any early termination fees) - or to repossess the property and hold you liable for any shortfall.

rssteve

just a tip IMO the BTL bandwagon left years ago. If you really want to invest then wait for prices to settle (inflation catch up) or fall.

RA052824

I've just been thinking about getting a place now so i'm on the ladder but don't really need to move out yet. Just want it to profit me as much as possible!

discodenkelly

Buy and move in mate, the cost of mortgages these days, BTL or straight forward homeowner, will far out weigh what you can reasonably charge as rent then pay your overheads, tax etc on top.
Do your sums first before hand. Speak to some property letting agents etc.