10:12 AM, 4th February 2015, About 6 years ago 12
My flat in 2001 cost £190k. It has been rented most of the last 12 years and yields about £900pcm. I still owe £40k on a variable rate interest-only mortgage which is due in August 2015. Market value is £300k.
Keeping the flat was meant to provide retirement income instead of committing to a pension pot and annuity. Now the rules have changed, but you still can’t put a residence into a SIPP (yet) and any transfer would realise the gain … or would it?
Plan A is to pay it off because I have a much-reduced income and am loathe to re-mortgage on expensive buy-to-let terms. An endowment is in place to do this.
What are the alternatives – to mitigate what is a growing CGT liability, after PRR and Lettings Relief the bill would be massive. Is there a way of spreading out the realisation of the capital gain?
The best way to cheat CGT is to die of course, which I fully intend to do some day, so there is a strong argument for keeping the flat. Oh to be rid of leasehold problems though!
New to this and I’m sure I need professional advice, but I’m never sure who to ask.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Previous ArticleDeposit Dilemma with tenant asking to stay longer?
Next ArticleAm I converting my new property into an HMO?
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|