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CSA and Rental Inco...
 
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[Solved] CSA and Rental Income

 
(@bloke979)
New Member Registered

I am considering placing my property on the rental market to make ends meet.

This will mean that I will have to change my mortgage to a 'buy to let' mortgage which will cost me more, but I hope this will be covered by rental revenue.

HOWEVER, I hear that the CSA may class this as another income and subsequently request a percentage above and beyond my current CSA maintenance payments?

Does anyone have any experience of:

  • Whether I have to inform the CSA should I rent my property out
  • When informed, whether the CSA will take more money from me (and roughly how much / percentage)

Thanks you all for your help.

My financial situation dictates that I have to consider the above. :boohoo:

Quote
Topic starter Posted : 29/05/2014 2:49 pm
(@got-the-tshirt)
Famed Member Registered

Hi There,

I don't have any experience of this I'm afraid, but I would contact CSA/CMS whichever you are using and just ask the question, they will hopefully be able to give you the information you need, as each case is different then it's best to check directly with them.

GTTS

ReplyQuote
Posted : 29/05/2014 4:03 pm
(@eric14)
Honorable Member Registered

as far as I know if you own a 2nd property you are renting or NO mortgage then this is an income so would be considered by the csa

reading your post it seems you are going to be renting your home that is still mortgaged and therefore not creating an income but paying a loan (mortgage ) so I can not see how CSA and calculate it as an income
is this your only property as I think their is something about a second property as when I met my wife we were going to keep her house and rent it out after buying her ex out but I think I read the csa would want some as second property in the end my (now ) wife just sold it easier all round

hope the csa can help and don't try screw you over sorry they are not my friend, they seem to take the 'mother' as gospel so after having my children for over 104 night I am down as 50 so no reduction they just say well at least you see them and now back paying for 2013 as she claimed that year as well when I had them 156 nights no point keep arguing but cost me £1000 ish extra pounds for her lies

ReplyQuote
Posted : 29/05/2014 5:39 pm
(@dadmod4)
Illustrious Member

I'd get financial advice, but firstly, if you think you may move back into the property at some time (for instance, you are going to retire back to it), see if you can keep your existing mortgage, that will save you quite a bit on both interest and fees. You will be getting an income which you will have to declare to the inland revenue, and any income over the interest and expenses you pay (not capital) is classed as profit, so you will have to pay tax on this, and presumably declare it to the CSA. I'd have a chat with them about this because it would be unfair if they assessed you both for this and for capital over £65k (assuming you have this much equity).

If you are switching mortgages to rent, there are some advantages to going for an interest only mortgage on a rental property, so worth considering that.

ReplyQuote
Posted : 01/06/2014 9:39 pm
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