Buy-to-let to normal Mortgage..

pool-hustler

i have a scenario I need advice on.

1. Two properties (one is buy-to-let)
2. Sold the live in property moved into buy-to-let
3. no profit made
4. Do I have to change mortgage. I will lose tracker!!
5. When I go to sell is there a capital gain, or do I just switch to standard mortgage to avoid that? Are there any pitfalls here??

hearts

4. I would leave well alone.
5. No Capital gain. Mortgage doesn't make a difference.

pool-hustler

i am leaving well alone. Thats the easy bit me finks lol.
There will be equity on the remaining house tho. How come there is no capital gain then?

hearts

pool-hustler wrote: »

i How come there is no capital gain then?

It's hidden in the sentence. ;-)

pool-hustler

haha but there is capital/equity in the "rental" property tho

pool-hustler

blimey. I thought this was a busy forum.
can anyone advise on this at all?

hearts

It would help if you explained it properly ;-)

Has the value of the rental property increased since you bought it.? If YES then there may be a CG. If NO then there isn't.
If it has then there are other considerations which may still mean no CG.

As this is now your main residence. It is no longer a rental property.
Did you delclare the income? If you did then you should ask an accountant about CG. If you didn't then, well who knows it ever was.

payless

You need to list dates and prices you purcahsed / sold and dates you lived / rented out - separately for both properties

pool-hustler

payless wrote: »

You need to list dates and prices you purcahsed , and dates you lived / rented out - separately for both properties

OK. Thanks. that is helpful.
I can still leave the mortgage well alone then...
I don't have to declare all that until I sell though do I?

pool-hustler

hearts wrote: »

It would help if you explained it properly ;-)

Has the value of the rental property increased since you bought it.? If YES then there may be a CG. If NO then there isn't.
If it has then there are other considerations which may still mean no CG.

As this is now your main residence. It is no longer a rental property.
Did you delclare the income? If you did then you should ask an accountant about CG. If you didn't then, well who knows it ever was.

1. Value... No. It is either the same or slightly less. I take it CG doesn't take your original deposit into the equation then? I sound really stoopid now. ;-)
2. How do you mean declare income? I just took the rent and paid the mortgage. There was about a £50 profit each month for 10 months...

pool-hustler

hearts wrote: »

? If you did then you should ask an accountant about CG. If you didn't then, well who knows it ever was.

The solicitor would have to declare the sale of a rental property wouldn't he?
God, I must be really thick
er so when i go to sell, waht happens to rentals? Is it a different process to a live in mortgage?