Tenants in Common and Mortgage Calculations
Discussion
A family member is in a bit of a dilemma. She is looking to switch from a residential mortgage (with consent to let) to a buy to let mortgage for a rented property but on her own she does not have enough salary to cover the new enhanced buy to let coverage (mortgage payments to rent).
Her hubby can meet the salary requirements but he is not on the deeds so cannot currently go onto the mortgage for this property. He could become a tenant in common but as this is a second property for him as they already have a main residence this would then attract 3% stamp duty under the new buy to let rules but only on the % split of the mortgage liability he would then take on under his share.
The question is does the % share of the tenant in common get taken into consideration when the banks look at the BTL mortgage application or do they just look at the joint income of the two tenants? This is important as he could just take a notional share say 1% to get on the deeds and minimise any stamp duty liability.
Any other bright ideas to get onto a BTL mortgage without this hassle?
Her hubby can meet the salary requirements but he is not on the deeds so cannot currently go onto the mortgage for this property. He could become a tenant in common but as this is a second property for him as they already have a main residence this would then attract 3% stamp duty under the new buy to let rules but only on the % split of the mortgage liability he would then take on under his share.
The question is does the % share of the tenant in common get taken into consideration when the banks look at the BTL mortgage application or do they just look at the joint income of the two tenants? This is important as he could just take a notional share say 1% to get on the deeds and minimise any stamp duty liability.
Any other bright ideas to get onto a BTL mortgage without this hassle?
nick_968 said:
A family member is in a bit of a dilemma. She is looking to switch from a residential mortgage (with consent to let) to a buy to let mortgage for a rented property but on her own she does not have enough salary to cover the new enhanced buy to let coverage (mortgage payments to rent).
Her hubby can meet the salary requirements but he is not on the deeds so cannot currently go onto the mortgage for this property. He could become a tenant in common but as this is a second property for him as they already have a main residence this would then attract 3% stamp duty under the new buy to let rules but only on the % split of the mortgage liability he would then take on under his share.
The question is does the % share of the tenant in common get taken into consideration when the banks look at the BTL mortgage application or do they just look at the joint income of the two tenants? This is important as he could just take a notional share say 1% to get on the deeds and minimise any stamp duty liability.
Any other bright ideas to get onto a BTL mortgage without this hassle?
Find a lender with no minimum income requirements? Her hubby can meet the salary requirements but he is not on the deeds so cannot currently go onto the mortgage for this property. He could become a tenant in common but as this is a second property for him as they already have a main residence this would then attract 3% stamp duty under the new buy to let rules but only on the % split of the mortgage liability he would then take on under his share.
The question is does the % share of the tenant in common get taken into consideration when the banks look at the BTL mortgage application or do they just look at the joint income of the two tenants? This is important as he could just take a notional share say 1% to get on the deeds and minimise any stamp duty liability.
Any other bright ideas to get onto a BTL mortgage without this hassle?
Gassing Station | Finance | Top of Page | What's New | My Stuff