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Any one done this? Are there any issues or problems in terms of things like capital gains tax, council tax etc?
We have seen a house we'd really like, but not managed to sell ours yet. We can afford to buy the second one, and then sell ours later (not really interested in renting it out), but I know that 'second homes' have some implications tax wise.
Anyone want a nice 5 bed house in Sheffield....?
[i]We have seen a house we'd really like, but not managed to sell ours yet. We can afford to buy the second one, and then sell ours later (not really interested in renting it out), but I know that 'second homes' have some implications tax wise. [/i]
When you say later, is that in weeks/months/years? 🙂
If not the latter, then walk away.
I've got 2 homes (one in Edinburgh and one in London) but currently get around the council tax issues because my kids (who're both students) live in the Edinburgh place while my wife and I live in the London one. We previously had 2 Edinburgh places and did have to pay some capital gains tax when we sold one of them, however I'm not expecting it to be a big issues when we eventually sell one of our current places, although it might be more so if we were renting one.
It can be problematic explain the situation to a mortgage lender though - we don't have a mortgage on our Edinburgh place, which I thought would be seen as an advantage as the equity in it is a lot more than the mortgage on our other place, however current mortgages seem to be less based on risk to the lender and more about affordability. It wasn't a problem in the end - just took a bit of explaining!
Years I guess, no mortgage on first house.
we recently sold ours found house we wanted, had offer accepted all going ahead then our buyer pulls out, we didn't want to loose the house we wanted so we decided to raise the money other ways then sell when it sold, only down side we had was found was the extortionate fees charged by the banks,setting up fees,survey fees,early repayment of mortgage, etc, council tax and other bills didn't seem too bad compared with these. n hind sight we would have probably been better off knocking house price down and gone for a quick sale. Ironic bit was the buyer that pulled out was the one who bought it in the end
I did it and would never do it again, although the house we were selling wasn't being lived in we got stung for council tax, two lots of bills and no known end. We were lucky that it sold just before we completely ran out of money.
I wouldn't go for the stress again.
As long as you sell it within 18 months, there will be no CGT implications.
We are planning to do this when we can find another house as missed out on 'the one' we wanted in January due to incompetent estate agents.
We just spoke with our current mortgage provider who agreed to transfer the current mortgage to the new property, & we will pay it off the current flat with a cash loan from family and sell it off to repay them later.
We are looking for a renovation project so its nice we will still have somewhere to live while we start the works, and means that the council tax on the new place will be minimal until we move in.
The only problem at present is finding that next house as the property market seems to have really picked up since January.
well done for not just telling them to **** off the day before you exchangedIronic bit was the buyer that pulled out was the one who bought it in the end
We've bought before selling twice now T. Don't recall any issues. Emptied of furniture, it gets a 50% council tax deduction for a while.
Sell it to me for less than you paid and you can right it off as a loss, as I'm feeling generous........
No Cap Gains on main residence anyway (is there?)