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Where Taxpayers and Advisers Meet

Jointly owned BTL flat- taking advantage of wife's tax allowance.

Ed209
Posts:9
Joined:Wed Mar 19, 2014 12:15 pm
Jointly owned BTL flat- taking advantage of wife's tax allowance.

Postby Ed209 » Mon May 30, 2016 10:34 am

Hi all,

I am soon to buy a BTL flat for cash with my wife. For tax reasons (she currently doesn't work) it is in our interests for her to receive as much of the rental income as possible.

Although buying with cash, there will be a point down the line where we will want to get a BTL mortgage on this flat, and my credit rating and income are much more attractive to lenders than hers, hence why I do not want to put the flat solely in her name.

My question is, how do we go about officially splitting the benefial interest (99/1 in her favour)? Am I right in thinking this is with "Form 17"? Can we do this as "Joint Tenants", or do we have to be "Tenants in Common"?

And finally, once we've made this 99/1 beneficiary split, can we still get a BTL mortgage as though we were regular Joint Tenants, or will my wife's 99% beneficiary interest mean the credit check and affordability assessment is weighted 99% towards her, making redundant my better income and credit score?

Thanks in advance.

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