Raising money on your home to buy property to let

Raising money on your home to buy property to let

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A client had £150000 mortgage then increased it to £300000 and the money raised was used to purchase a cottage in Northumberland which is commercially let for about 30 weeks a year. There is some private use of the cottage but it is definitely let out to holiday makers.

First of all can we claim the interest on half the mortgage? And assuming that it is used privately for say 30 days a year would we claim the interest on half the mortgage times 335/365days?

Alistair Accountant

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By NeilW
02nd Oct 2007 11:59

Balance Sheet
You can claim interest on all loans used for the purposes of the business up to the value of the property when it was first introduced into the business.

If you draw up a balance sheet and 'withdraw' the equity, then you'll see how much interest you can claim.

NeilW

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