I think that £35k has to go towards owning so that you stop renting.
No future CGT if main residence, saving the rent yield rather than having to pay tax on the rental income.
OP here. Thanks for input everyone. I would love to stop renting and buy, but I can’t afford to buy a house that suits our needs; myself and my partner have 3 children to Home between us, and we have some fairly restrictive geographical restraints, due to schooling requirements. Basically hardly a day goes by when we don’t both drive nearly a hundred miles, either school runs or commuting, and that represents the best possible geographical position. This is going to be the case for approx ten years it seems. I’m aware that renting is massively suboptimal, but we can’t buy anything that would house us all in anything like the house we currently live in. Hence my thoughts about buying a place to rent out. I could afford to pay the mortgage at a push (I’ve been paying a mortgage on the house that is liberating the aforementioned 35k alongside the rent) but if I could rent it out as well it would become cost neutral and gain equity at a greater rate than any other investment I can think of, I think. Obviously maintenance needs to be considered, as does periods of no occupation. This isn’t really ‘buy to let’ it’s more ‘buy to own, let to subsidise’.
Is this a completely daft idea?