Hi All
My husband currently owns a rental property without a mortgage. It is worth about £135k and is rented at £675 a month.
We are looking to move house and so are going to sell our main home (worth about £220k on which we have a £98k mortgage) and buy a new house for around £350k. We will port our existing mortgage and take an additional loan with the same lender for around £150k.
We were wanting to put the rental property into both our names (which presumably would constitute a new letting business) and we wondered if we could do this by transferring it to us both for a consideration of £125k so below the sdlt threshold and use the new mortgage advance for this purpose. The idea being that we would then be able to deduct the interest element of the repayments on £125k for the rental income (as at present my husband pays about £1500 a year in tax on the rental income). In reality my husband would then put the £125k received for the rental property straight into the funds required to buy our new house. This would all happen on the same day.
Is this ok? Any suggestions gratefully received.
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