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Advise on owning two houses
gadgets_2
Posts: 2 Newbie
I am looking for some advise for a family member.
My father in law owns his house outright (no mortgage) however is in the process of having a new house build from scratch. He is under the impression that he needs to sell his current house before completion of the new build as he will be hit with capital gains tax.
I would like to buy his old house, however I am not sure in this current climate I could manage to get a mortgage for the houses true worth. What we would like to know is there anyway of doing the following without my father in law getting hit for tax-
1)Is there anyway of renting the old house, as he doesnt have a mortgage on it as he owns it outright and wouldnt need to change it to a buy to let.
or
2)Or could we go for a percentage morgage like you would with a Housing association and he retains and percenatge of the ownership untill we were in a position to buy it outright. Would the banks be agreeable to this for a start?
Any help appreciated.
My father in law owns his house outright (no mortgage) however is in the process of having a new house build from scratch. He is under the impression that he needs to sell his current house before completion of the new build as he will be hit with capital gains tax.
I would like to buy his old house, however I am not sure in this current climate I could manage to get a mortgage for the houses true worth. What we would like to know is there anyway of doing the following without my father in law getting hit for tax-
1)Is there anyway of renting the old house, as he doesnt have a mortgage on it as he owns it outright and wouldnt need to change it to a buy to let.
or
2)Or could we go for a percentage morgage like you would with a Housing association and he retains and percenatge of the ownership untill we were in a position to buy it outright. Would the banks be agreeable to this for a start?
Any help appreciated.
0
Comments
-
He has three years from the date that he moves out of the old house, he should speak to an accountant to confirm this.
I don't think you will get far with the percentage mortgage scheme, but could you organise a legally binding option to purchase and rent for three years before you buy? This would then give some protection to you and your wife in the event you wanted to do some major works or if your FIL were to change his mind or even lose his mind.0 -
Agree with above. He can rent it to you for 3 years and then sell with no CGT and live in the other new house quite happily!0
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