Short Term Tenancy
Discussion
I'm presently selling my flat as my kids have now vacated it (they lived there and I paid mortgage) and moved abroad. I've never rented it, but had a viewing early this week and couple want to buy it.
Presently, they are waiting for their late Mothers house to sell, so have asked if they could rent it for a 6 month tenancy until the house sells and releases their inheritance (easily cover the cost of flat). I've agreed and understand there is no guarantee they will complete the purchase at the end of the STT, but willing to risk it. So, do I have to tell my Mortgage supplier and the tax man (will be rented through an agency)? I ask, because if the purchase go's through, the rent for the 6 months, minus my small monthly mortgage cost and the agency fee will be deducted from the property cost, so neither myself or purchaser will be out of pocket from the original asking price.
Presently, they are waiting for their late Mothers house to sell, so have asked if they could rent it for a 6 month tenancy until the house sells and releases their inheritance (easily cover the cost of flat). I've agreed and understand there is no guarantee they will complete the purchase at the end of the STT, but willing to risk it. So, do I have to tell my Mortgage supplier and the tax man (will be rented through an agency)? I ask, because if the purchase go's through, the rent for the 6 months, minus my small monthly mortgage cost and the agency fee will be deducted from the property cost, so neither myself or purchaser will be out of pocket from the original asking price.
Okay, thanks for links. Issue with self assessment is if they buy, I give the rent back to them, so if I pay tax on the income can I claim it back, or do I have to write it off as another expense. I mentioned the letting agents (same company that's selling flat for me) as they are VAT registered, so will this mean the tax man gets to see that the flats being let. I'm retired so only pay tax on my public sector pension.
Appreciate all the replies, thanks. Last question please. My Wife presently
completes her self assessments, as she runs a very small running club. Her annual income is approx 5k and I also use her marriage allowance against my pension. Would it be sensible to put the tenancy in her name (if it's possible) as the rental income from the SHT would possibly still be inside her threshold? Mortgage on the flat is in both our names.
completes her self assessments, as she runs a very small running club. Her annual income is approx 5k and I also use her marriage allowance against my pension. Would it be sensible to put the tenancy in her name (if it's possible) as the rental income from the SHT would possibly still be inside her threshold? Mortgage on the flat is in both our names.
I haven't met the future purchasers as the viewings were all done through EA. they are doing all the relevant checks (so far, no children, pets and non smokers) to make sure everything is financially viable as well as deposit etc.
That's why I asked about the tax man, if they buy, I haven't gained anything in rent.
That's why I asked about the tax man, if they buy, I haven't gained anything in rent.
Okay guys I get the point, I'll speak to the agents, so far I've left it all to them.
If I'm honest I wouldn't mind keeping the flat and renting it out, I only owe 40k and the rent is circa £600 a month. Unfortunately, Wife thinks the building will fall down or we will end up with tenants from hell (she watches too much TV
) The whole area is in the middle of a multi million pound regeneration programme and feel property prices may rise on completition in a year or two's time.
If I'm honest I wouldn't mind keeping the flat and renting it out, I only owe 40k and the rent is circa £600 a month. Unfortunately, Wife thinks the building will fall down or we will end up with tenants from hell (she watches too much TV
) The whole area is in the middle of a multi million pound regeneration programme and feel property prices may rise on completition in a year or two's time.Well good news. I've just got off the phone to the agents and they have finalised rent at £550 a month. Apparently, knocking the rent off the eventual cost of flat was only a suggestion, as a way of securing a future purchase. It has not been made to the new tenant/purchaser and they have already agreed to the monthly rent. So all in all, I'll end up with an extra few grand after the six months, this will Cover the agents and solicitors fees if they do buy . No problem now with the tax man as it will all be done as necessary.
. No problem now with the tax man as it will all be done as necessary.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff