More and more lenders provide mortgages to real estate investors and offer the option of including rental income when applying for a mortgage own house. By providing insight into rental income, the real estate portfolio and drawing up a rental income statement, we provide a numerical substantiation of the stable, net income from real estate. With a good overview, a dream home comes one step closer and there are often more options.
From rent to (net) income
Investing in real estate has become very popular in a short period of time. Many people want to have control over the build-up of their pension or want to become less dependent on income from employment or their company. With the advent of the buy-to-let mortgage, buying real estate to rent out is accessible to a wider public. become. Similar to a employers statement for income from paid employment, lenders also need a good substantiation of rental income in order to gain insight into the total income position. Receiving proof of this is important for proper filing.
Why do I need a statement?
Adding additional box-3 income from real estate may also be necessary for the applicant for a mortgage. This can be the case, for example, if you want to increase the maximal mortgage based on box 1 income, so that buying your dream home becomes possible. If you have financed the rented property, it is important that you can demonstrate both the benefits and the burdens. In such a situation, a rental income statement can ensure that the actual costs of real estate financing can be compensated by providing insight into the rental income according to net income. Having a monthly obligation ensures a considerably lower mortgage when there is no income in return.
At Bliss we make an operating overview and calculate the income in box 3 ourselves if the rented properties also fall in box 3 of the income tax. Rental income may be fully included as income on the basis of the statement. This is even the case when no box 1 income from (former) employment applies.
Property not yet rented out?
The Temporary mortgage credit scheme states that the lender, when determining the so-called test income account takes into account the current fixed and steady income of the customer. Rental income can also be taken into account when this income from property can be reasonably expected within a reasonable period of time and on a structural basis. If a property has recently been purchased, becomes available for rent shortly after transformation or new construction, it is possible to demonstrate by means of an additional statement which future available rental income can be used to provide a responsible mortgage.
Want to know more or need help?
To determine the income from rental, we at Bliss have the knowledge and experience to determine for ourselves what amount of income can be included in the mortgage application. The Rental Income Statement that we prepare indicates how much rental income can be included. By adding the document to the mortgage file, the lender includes that income when applying for a mortgage. Do you need help for your customer or do you want to know what your options are? Then schedule a non-binding call appointment.
