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mortgage & conversion of house & tax
hackneyhouse
Posts: 12 Forumite
posted a thread here before but for some reason noone replied.
I'll try to make simpler.
I have a freehold house and am converting to flats. I live here. I have a mortgage of 230k and house worth 480k. Worth significantly more as 2 flats.
I have planning permission to do this.
Existing mortgage tied in 2 years. Need to tell them my plans. Sale of one flat will pay off my mortgage alone. That is the plan or to keep a small portion of mortgage.
Plan is to remain living in one of the flats, although I could sell both.
Problem 1: Existing mortgage. Will they let me and if not what can I do to get around this as sale of flat is intended to pay off mortgage?
Problem 2: Someone has said I'd be subject to income tax on this? Really? My accountant says not as I am already living and will remain in property. What about tax issues?
Thanks for your replies!!
Heather:o
I'll try to make simpler.
I have a freehold house and am converting to flats. I live here. I have a mortgage of 230k and house worth 480k. Worth significantly more as 2 flats.
I have planning permission to do this.
Existing mortgage tied in 2 years. Need to tell them my plans. Sale of one flat will pay off my mortgage alone. That is the plan or to keep a small portion of mortgage.
Plan is to remain living in one of the flats, although I could sell both.
Problem 1: Existing mortgage. Will they let me and if not what can I do to get around this as sale of flat is intended to pay off mortgage?
Problem 2: Someone has said I'd be subject to income tax on this? Really? My accountant says not as I am already living and will remain in property. What about tax issues?
Thanks for your replies!!
Heather:o
0
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