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Reply to: Boomed?

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Previously on "Boomed?"

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  • brownie74
    replied
    east london

    last year i sold my flat in East London and made a lot of money on it in 3 years

    the reason i sold it was i'd rather have 100K cash in the bank now than *maybe* 200K in the bank in 2 years from now

    although it has gone up 70K more in one year since i sold it, i'm glad because i have a large deposit for the next one

    i have seen a mate lose 200K in the dot com crash by being greedy

    cash it in! then wait for the crash!

    Leave a comment:


  • Lockhouse
    replied
    Aarrrgggghhh!

    I'm definitely selling now. One of the tenants left the bath tap running last night and partially flooded the downstairs neighbours' flat. I didn't get to bed until 3.00am sorting it all out.

    Leave a comment:


  • xoggoth
    replied
    Don't forget that the value of a house is significantly higher in areas where people leave out little saucers of jam for wasps.

    Leave a comment:


  • ASB
    replied
    Originally posted by THEPUMA
    So when you originally bought it, you were married and your wife owned and lived in another house? If that is the case, then I think HMRC would look at which one you spent most time in. If this is not yours, then there is a problem.

    If you do move back in, then you will get the last 3 years of ownership exempt and will be able to double this up with lettings relief so you will probably get 60% off, leaving a gain of £56K, £33.6K after NBA taper relief, £15.2K after annual exemptions.

    If you have actual occupation of the BTL before you sell, you can elect for it to be your PPR for a day and then elect for your normal residence to be your PPR the following day. This means you will only lose one day of PPR on your main property.

    Various caveats apply etc.
    When *I* originally bought it wife and I owned (and still do) our house. I then gifted half of it to my wife. I lived in it 4 nights a week for a couple of years and foolishly didn't make the election.

    I'll be quite happy to trade 3 years + lettings relief for one day PPR on the main residence. [Here the gain is rather more]

    It does look as though there might be some mileage.

    I assume Mrs ASB would also need to move in and make the election in order for her to claim the lettings relief.

    I guess my strategy probably needs to be make election, sell it, claim it, cross fingers.

    Leave a comment:


  • THEPUMA
    replied
    Originally posted by ASB
    Yes. I guess I could move back into it for a while and make a 222 election. But that does look a bit transparent Also I don't know how this will affect the property which at that time will be my wifes PPR (or maybe we both move into the rental house and then sell it)

    The gain is is fact about 140k over 10 years. Mrs ASB and I are tenants in common anyway - but she is not on the deeds. This was done by a duly notarised deed of gift.

    I need to be careful with the main house as well.
    So when you originally bought it, you were married and your wife owned and lived in another house? If that is the case, then I think HMRC would look at which one you spent most time in. If this is not yours, then there is a problem.

    If you do move back in, then you will get the last 3 years of ownership exempt and will be able to double this up with lettings relief so you will probably get 60% off, leaving a gain of £56K, £33.6K after NBA taper relief, £15.2K after annual exemptions.

    If you have actual occupation of the BTL before you sell, you can elect for it to be your PPR for a day and then elect for your normal residence to be your PPR the following day. This means you will only lose one day of PPR on your main property.

    Various caveats apply etc.

    Leave a comment:


  • ASB
    replied
    Originally posted by THEPUMA
    Were you always married when you lived in it?
    Yes. I guess I could move back into it for a while and make a 222 election. But that does look a bit transparent Also I don't know how this will affect the property which at that time will be my wifes PPR (or maybe we both move into the rental house and then sell it)

    The gain is is fact about 140k over 10 years. Mrs ASB and I are tenants in common anyway - but she is not on the deeds. This was done by a duly notarised deed of gift.

    I need to be careful with the main house as well.

    Leave a comment:


  • THEPUMA
    replied
    Originally posted by ASB
    And Mr Bayleys take on the magic answer is ? [I will probably move in to it and make an election then, which should alleviate some of the pain, but the advice received to dater is "you're a bit stuffed mate"].
    Were you always married when you lived in it? If not, you will almost certainly get PPR which would include the last 3 years of ownership plus potentially £40K per owner lettings relief. That normally brings the gain down to nil unless you have owned it a very long time.

    Leave a comment:


  • ASB
    replied
    Originally posted by n5gooner
    I've just bought a copy, who wants me to email them the pdf....£10 and it's yours.
    And Mr Bayleys take on the magic answer is ? [I will probably move in to it and make an election then, which should alleviate some of the pain, but the advice received to dater is "you're a bit stuffed mate"].

    Leave a comment:


  • ASB
    replied
    Originally posted by n5gooner
    Well why don't you 'move in' for 6 months, change the gas, CT and elec to your name convert the mortgage to a personal one, not a BTL then sell it....

    hth
    Well,

    Firstly it was my prime residence for a while. But being married I have another residense and it's not as simple as just saying "this is my PPR". There is a chance I might get the 3 years rental relief though.

    The state of the mortgage is irrelevant in terms of whether it might be ones PPR or not (in fact it has always had a mortgage on it which is a '"standard" residential one).

    Leave a comment:


  • n5gooner
    replied
    Originally posted by King Cnvt
    Buy it you tight git.

    Or simply roll over and hand over thousands of pounds.

    I've just bought a copy, who wants me to email them the pdf....£10 and it's yours.

    Leave a comment:


  • rootsnall
    replied
    Originally posted by King Cnvt
    Buy it you tight git.

    Or simply roll over and hand over thousands of pounds.
    That's always the next answer ! Still waiting.

    Leave a comment:


  • King Cnvt
    replied
    Originally posted by rootsnall
    This answer comes out every now and then, I'm still waiting for somebody who has bought the guide to explain the wonderful method of avoiding CGT other than moving into the property as suggested by Gooner !?
    Buy it you tight git.

    Or simply roll over and hand over thousands of pounds.

    Leave a comment:


  • rootsnall
    replied
    Originally posted by King Cnvt
    You don't need to pay any CGT. Read this guide.

    http://www.taxcafe.co.uk/property-tax-guide.html
    This answer comes out every now and then, I'm still waiting for somebody who has bought the guide to explain the wonderful method of avoiding CGT other than moving into the property as suggested by Gooner !?

    Leave a comment:


  • King Cnvt
    replied
    Originally posted by ASB
    Similar boat. The poroperty I have retained in the thames valley is now worth (in theory) about 220k. It yields about 7k after agents fees, insurance and the odd repair. After paying mortgage I clear about 1k.

    If I flogged and paid the CGT I'd cash out about 120k. So I actually need about 4% house price inflation to stay even with cash. The only reason I'm hangin on to it is the thought of all that CGT to be handed over.
    You don't need to pay any CGT. Read this guide.

    http://www.taxcafe.co.uk/property-tax-guide.html

    Leave a comment:


  • n5gooner
    replied
    Originally posted by ASB
    The only reason I'm hangin on to it is the thought of all that CGT to be handed over.
    Well why don't you 'move in' for 6 months, change the gas, CT and elec to your name convert the mortgage to a personal one, not a BTL then sell it....

    hth

    Leave a comment:

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