Report only income from from residential property abroad on Schedule E. Residential Property need not be reported.

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I currently live at home but have a buy to let property in kent. i have been offered a job in berkshire so will be moving out and am reluctant to sell the flat! can i get a seperate residential mortgage for me to live in and have two mortgages from just the one salary?

Mortages are granted based on your ability to PAY. . If you rent your residence you must declare that as income. Same with property tax--must pay for both and only the house you live in has the homstead exemption. Mortages are granted on the ability to PAY.

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Hi, can i get away signing up to a residential mortgage for a property that i intend to rent out as buy to let? this is intended for the uk. to simply put it, the rates for standard residential mortgages are better than those that are buy to let. the big question is, is it easy to get away with! any help would be appreciated. thanks sqm.

The operative words here are "get away with it". If your intention is to rent this out with no intention to occupy the property what you are proposing is fraud. By committing fraud, not only can they come after you for the money (mainly the difference between what you will be paying in interest and what you should have paid) they can also put you in jail. Can you get away with it? Maybe. If you don't and the prison you end up in has internet access, please let us know how your little sheme worked.

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To live in, can i do this as a residential mortgage or under a buy to let mortgage. the purchase price is £130,000 and i want to know how much % deposit is required is it 95% or more.

In the UK you are likely to be able to achieve a higher % if your earnings warrant it, but full details of youtr personal circumstances would be required. Talk to an IFA (Independent Financial Adviser), they don't usually charge for an initial appraisal. It could well be that any deposit can be refinanced from your existing properties anyway?

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I was thinking about buying a sub £100k property as an investment buy to let. i was wondering if i was able to purchase it using a residential mortgage, live in it for a few months and then ring the mortgage provider for a change to buy to let. buy to let mortgages need higher deposits which i can't afford, fees, interest rates and too many restrictions. i'm a first time buyer and just need some useful advice about whether this is a possible way of doing it, and if not if there is an alternative solution? i'm in the uk.

No that is fraud. Mortgage contracts specify length of time for the property to be your primary residence. Ranges from 12 months to always

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As long as you can afford to pay them off then there is no reason why you can;t have more than one.

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I'm in the process of buying a property to rent out to students but want to use a residential mortgage (as its cheaper then buy-to-let). i know you have to get permission from the lender in order to do this but the one im going for doesnt allow it. my way of getting round this however would be to say that i'm a live in landlord i.e. when i setup the tenancy agreement i could just put my name in it which would mean for buildings insurance purposes i would be covered. what's the chances of the bank even finding out whether i live there or not anyway?

So your question is what are the chances that your bank will catch you committing mortgage fraud? The reality is that if it is a single family home then they will probably not find out. Realize that from an insurance standpoint you may well have an issue with a claim if something happens down the road. It would not be difficult for an insurance adjuster to find out that you do not live there and this would probably invalidate your insurance since homeowners insurance is different than insurance for rental properties. Rental property also allows for enormous tax advantages on your 1040 so it would probably help from that standpoint also to do things legally. However if you still want to commit fraud then have at it.

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My property on which i have a residential mortgage is now rented to 4 students and produces a regular income.i understand interest on buy to let mortgages are tax deduct-able but does the tax authorities regard interest on a residential mortgage in a similar way?

You are running a business and all expenses are tax deductible. However, if your leader finds out you are not living there and have rented it out you could be in trouble. If you tell the tax office so that you get the tax relief, they will check with your lender. The tax office will know that you are renting out as you will be put the income on your tax assessment form. So talk to your lender and get the mortgage changed from residential.

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I am planning to buy a property with a residential mortgage. after completion of the process, if i change my mind to let the property rather than living in it, what implication would this have on the mortgage? another scenario: assume a person already has a house with a residential mortgage; this person wants to apply for another mortgage with the agreement (with the lender) that he/she will let the existing property. let assume the bank agrees and the person gets a residential mortgage and purchase the house. if this person decides to let the newly purchased house rather than the one living in, what implication would this have on the newly approved mortgage? could you please advice?

Once you decide to let the property, you will need to ask the lender for permission to let. Some may charge for such permission, some may even insist on you transferring onto a buy-to-let mortgage. The reason for this is because the risk is higher on BTL than on residential mortgages. Failure to notify the lender will (if your insurance is through them) invalidate your insurance and could ultimately result in re-possession due to your breach of contract. If your insurance is NOT through them, you will need to provide them with up-to-date insurance policies each year. It is no point you buying standard 'buildings' cover, because that would not be valid and be worthless, so they are going to see that you have purchased 'landlord insurance'. Your second scenario is similar. The property that is being let would b mortgaged on a buy to let mortgage. The lenders decision on this would be based on the borrowers financial situation and the financial security of the rental property - is there a proven rental income history? The other mortgage will be a residential one, but the lenders decision will take into account any other borrowing (eg BTL) that the purchaser has. Ultimately, the banks will need proof that you can afford your plans for both properties. "I will rent it" isn't proof, because you may not be able to find tenants quickly enough and you may have rent-free periods between tenants.