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The Property Podcast

ASK207: What do I do if I can't get a limited company mortgage? PLUS: Should I buy on the crossrail route?

The Property Podcast

Rob Bence & Rob Dix

Business News, News, Business, Education, Investing

4.82K Ratings

🗓️ 8 October 2019

⏱️ 8 minutes

🧾️ Download transcript

Summary

We’re back again this week for another Ask Rob & Rob. Our first question this week comes from Dorian. His question is around income tax for buy-to-let properties, with the new Section 24 rules.  Dorian and his wife are looking at investing in their first buy-to-let and they’ve been told that a lot of lenders won’t lend them the funds through a limited company because they’re first time landlords. Their other thought was to purchase as individuals which will then result in the income from the property being fully taxed on.  So Dorian wants to know if there’s a way around this? Can they own the property as individuals and put the income through a company, or is that not doable?  Rob B clears up the speculation on what Dorian has already been told and what he can do.  The second question comes from Esmarelda who wants to know if she should invest her £230,000 in an apartment in Plumstead near the Crossrail or a house in Luton?  We gathered from her question that she may want to be sticking to investing in the south, so Rob D pinpoints some areas that would be best to consider if the south is at the top of her checklist.  Tune in to find out where he suggests.   Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply).    Or if you prefer, click here to leave a recording via your computer instead. The next question on Ask Rob & Rob could be yours.  Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself. See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0

Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.

0:05.7

Welcome to Ask Rob and Rob. That part of your Tuesday that's lovely and predictable. You know that you'll tune in, you'll hear some questions and you'll hear some answers.

0:16.0

And if you're inspired by the questions you're here today, you can send in one of your own and here's how you do it.

0:21.0

Yes, you can dial in, you can call 013, 808,00035,

0:26.8

that's 013, 808, triple, 3.5.

0:30.3

Or you can head along to our website where you can leave a message.

0:34.3

You just need to head over to propertyhub.net

0:37.1

forward slash ask.

0:38.8

Whatever you do, it's obviously very simple because we're 200 and odd episodes in and Durian has followed that process to a tea and got a cracking question for us

0:48.9

Yeah, hi, I'm good afternoon Rob and Rob. My name's Duran. I just want to say thanks so much for the awesome

0:54.6

work you guys are doing, really enjoying the podcast. I've got a question around income tax from

1:01.6

by to let properties. Obviously with the new section 24 rules.

1:05.8

My wife and I are looking at investing in our first buy to let flat and we've been

1:12.1

told that a lot of lenders won't lend to us if we buy through a company

1:16.5

because we're first-time landlords. The pool of lenders is greatly reduced so we're thinking

1:21.2

right we'll have to buy as individuals, but that means that the income from the property will be fully taxed on.

1:27.0

So we're wondering if there's a way around that, can we own the property as individuals and put the expenses or the income through a company.

1:36.0

Any advice you can give on the tax rules with income from Blytz would be greatly appreciated.

1:41.8

Thanks very much.

1:43.0

Okay, Dorian, thank you for your question.

1:45.0

I'm really glad you've asked this because I'm actually a bit frustrated,

1:49.0

not by your question, but by the guidance you've been given.

...

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