Can you get a mortgage on a property owned by someone else?

grey_gym_sock

yes, except CGT is 18% in the basic rate band.

holly_hobby

Hi ... why didn't you say all this in your first post ??!

Blimey, thats a change to the script - but grey has covered the CGT aspect, and the basis of primary residence.

Also, may be worth noting, that if you sell the flat within 36 mths of vacating it, there will be no CGT exposure at all or any requirement to submit any SA to HMRC .... if you sell it after this period, Greys. CGT guide comes into play, to which you report to HMRC via SA .

To be fair, with regards to the various reliefs etc, inc your annual £10,600 CGT allowance, you would need a fairly hefty gain to actually incur a tax bill at all - to which if you have a net exposure you will pay 18% tax if you are a basic rate taxpayer, or 28% if you are a higher rate tax payer.

You can easily read about this on HMRCs own website - here you go .. super easy to understand too ...... http://www.hmrc.gov.uk/cgt/property/basics.htm

With regards to the new house, don't involve Dad at all there is no need to to mitigate CGT, as I have explained as this will be your primary resience you get full CGT relief on any gain on disposal under the PRR regs.

Any exposure on the flat we have discussed.

Hope this helps

Holly

kingstreet

grey_gym_sock wrote: »

i don't think kingstreet has the correct calculation (though the general idea that only part of the gain is taxable, if the property is your PPR for part of the time you own it, is correct).

Yeah, I was trying to explain the basis point in time was different, that it only started the taxable gain clock ticking from the point it ceased being PPR.

I complicated it by trying to make it more simple...

getmore4less

What suprises me is your father allready has a property portfolio and was not able to advise on this tax situation.

Did you ask him? he should know this stuff inside out.

Are you sure the business case stacks up
why keep the flat whats the gross yield what will the BTL mortgage cost etc.