Should we sell??

guacamole_2

Hi - Can you help?

Last year my husband and I bought a new house. We kept the original as an investment and rented it out.We'd owned the house for 6 years.
We rented the house out for a year, but now it is empty and for various reasons it's almost become more trouble than its worth.
We had also heard more and more about capital gains tax and wondered if we should get out now, rather than later, and end up paying a huge tax bill.
Also the property is just in my name - should I put into my husbands name as well to get the 8,800 exemption doubled?
People always say ' oooh 2 houses thats a good position to be in'
But is it?
Should we invest another way?
Any advice or opinion gratefully received - I want to make the most informed decision and not an emotional one!!

Doozergirl

IF it is more hassle than it is worth, why keep it? If you sell now you won't have to pay any CGT as it has been your main residence within the last three years.

If you do sell it and it's empty, it would probably be a good idea to magnolia it out and put some new carpets down, if it isn't like that already. Empty houses are often more difficult to sell as you can see all the litle faults that furniture usually hides.

regularsaver1

You will pay solicitors fees to transfer into joint names - is it worth doing this (and it takes some time)

Gorgeous_George

Yes, two names doubles the CGT allowance to £17,600, If prices fall, that's not a problem (but the loss of value may be).

Are you paying tax on the rent? Youi should declare the rent even if the mortgage interest and other costs negate your tax liability.

CGT would be payable on the value at sale minus value when the letting started. Do you have a valuation at the time that the house was first let. EDIT: but see doozergirl's point about 3 years

landlordzone may be the best place for advice/support. In my experience, the monetary benefits are outweighed by the hassle. I have a BTL but not entirely for making a profit.



GG

guacamole_2

Thanks for that - some really good points
yes we have paid tax on the rental income - and thanks for the heads up about the 3 year thing! and yes it does need a lick of paint!
I'll also check landlordzone out!
Cheers

silvercar

if you are selling within 3 years of it being your principal private residence, there will be no CGT to pay and so no value in transferring it into joint names.

freebo_2

I think if you transfer it into joint names you're liable for stamp duty (on 50% of the value of the house). In my last property I wanted to transfer it into joint names with my (then) girlfriend, but when I heard about the stamp duty it put me off!