Hiya, was wondering if anyone could point me in the right direction or know if we would have to pay anything if we rented our property out to rent another one ourselves?
I'm not explaining this right, we own our property with a mortgage, but at the moment due to my sons ill health it's not suitable and can't be adapted to be so, we were thinking of selling and trying to buy something more suitable, but because we are not sure how mortgage rates/tax rises etc are going to pan out, we thought we might rent ours out and rent somewhere else ourselves that would be more suitable?
The rent we have been quoted as being able to acheive would be approx £250 more than our mortgage, we would have an agency fee of 10 % + vat to pay monthly and obviously we would be responsible for running repairs etc. The property we are looking at is about £100 less per month to rent but in a higher council tax band ( ours band c, new one band e ), I don't know why the rent difference, the agent said because we were in a better catchment area for schools etc.
So my question is, would we be liable to pay any tax etc?
Thanks in advance