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Releasing equity and paying taxes


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Hi everyone,

 

I'm pretty new to the property scene and have a few questions that I'd really appreciate some advice on...

 

I came into some money a while back and last year bought a 2 bed mid terrace for 70k in cash which seemed like the smart thing to do at the time (At the age of 21 I didn't want the stress of a mortgage) but now, I want to increase my property portfolio and I'd like to release equity to buy another.

 

At the moment I'm thinking to release 80% and pay for the house on a BTL interest only mortgage.  This would give me 56k in cash and I could actually probably buy 2 or 3 more depending on the cost. Again on a BTL interest only mortgage. Does this sound like a smart idea?

 

I have no contacts in the property business and I don't know any mortgage brokers. I've been looking online at the various rates but I'm sure I could get a better deal by speaking to a broker? Could anyone advise one please? (Preferably one based in and around Manchester).

 

On a separate topic- I haven't had to pay any tax on earnings yet but the time is getting closer and I don't yet have an accountant. Again- any advice please? I believe you're able to offset certain costs e.g. agency fees, wear and tear, solicitor fees against the income to enable you to pay less tax. Is it also possible to offset some of the cost of the actual property itself? Again if anyone could recommend an accountant in/around Manchester that would be great!

 

Any help/ tips/ recommendations would be much appreciated!

 

Thanks,

Gabriella

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