Switching mortgage to buy to let

[brehon6789]

Hi All

I have a quick question for you all, I have a house that has a standard mortgage across 35years. the mortgage amount is for 210,000 and the house is worth 300,000.

I currently live in the house but i plan to move out next year and i'm thinking of switching the mortgage to a buy to let at interest only over 25 years.

Will i have to pay any CGT are there any penalities that i would have to pay?

Can any one see any problems with the scenario above?

Thanks

Brehon

 

[techman]

You only pay CGT if you sell the property.

Also, if you rent a house within 5 years of purchase, there may be a possible clawback of stamp duty. See here: [broken link removed]

 

[RainyDay]

Can any one see any problems with the scenario above?

What kind of yield to expect to earn on your investment? What will your income tax liability be? How many months per year will the property be vacant? What will the additional insurance costs be?