Renting
rooms to increase borrowing capacity?
As house prices and mortgage levels have increased, many first
time buyers are seeking to add to income by renting out rooms
in their newly acquired houses. Most lenders will take the potential
for such income into account when assessing borrowing capacity.
Lenders
mainly review room rental on a case by case basis, please contact
our mortgage consultant for further information or apply online.
Rent a Room Scheme
The Rent a Room scheme was set up to encourage home owners to
provide residential accommodation by renting out rooms in their
own home. This relief is effective from April 6 2001.
Gross annual rental income of less than €6,000 will be exempt
from tax where a room (or rooms) in a person's principal private
residence is let as residential accommodation.
Furthermore,
availing of this scheme will not adversely effect any of the following
entitlements:
| - |
stamp
duty relief on purchase of principal private residence |
 |
|
| - |
principal
private residence capital gains tax relief on disposal |
|
|
| - |
mortgage
interest relief. |
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