Buying before we sell

Nicki

We've accepted an offer on our new property, and had an offer on the one we are living in until last week, when the purchasers decided not to proceed. We could afford to proceed with our purchase if we take out a much bigger mortgage than planned, though obviously would prefer to sell the one we are in.

Hubbie is keen to go ahead with the purchase. Does anyone know what the CGT position would be though if we bought house 2 before we sell house 1. How long do we have to sell house 1 before we lose the benefit of the principal residence exemption? Are there any other pitfalls to bear in mind?

Meeten

2yrs to sell....

other pitfalls could poss be a higher interest rates that the banks may apply on getting a 2nd loan ...

hope it all goes well and you get to sell your house soon!

silvercar

if you move into the new house (almost) immediately and declare it your PPR, your old house will be exempt from CGT for the time it was your home and the last 3 years of ownership.

So provided you sell within 3 years you will be exempt from CGT on your old house and (when the time comes) exempt on your new home.

Nicki

Thanks. I'll be a nervous wreck if it doesn't sell for 3 years! Especially if I then have to start posting on here as a landlord and running the gauntlet of landlord and tenant issues!