Anyone else have their house on the market?

saverbuyer

motorguy wrote: »

Yeah probably about right.

Interestingly, we'd people in it who are lifetime renters - always just rented. Would have loved to buy the house off us, but being near 50 now the mortgage would have been over too short a term and the payments too much, even with a significant deposit that they had.

We didnt rent it out to make money, it was our previous home and we did it to keep things ticking over until the market recovered. If we'd attempted to sell up 5 years ago we'd probably have owed more than we would have got for it, whereas now theres £35,000 - £40,000 of equity in it.

FYI halifax has a max term of 40 years up to 75 years of age. Not that they would necessarily want to work that long, but still a standard 25 year term at 50 is certainly possible. Big deposit, 1.59% on repayment, about £350 a month.

motorguy

saverbuyer wrote: »

FYI halifax has a max term of 40 years up to 75 years of age. Not that they would necessarily want to work that long, but still a standard 25 year term at 50 is certainly possible. Big deposit, 1.59% on repayment, about £350 a month.

Interesting. They went to a mortgage advisor and the figures didnt stack up.

He mustnt have suggested that one or they didnt like the idea of a mortgage to 75.

saverbuyer

motorguy wrote: »

Interesting. They went to a mortgage advisor and the figures didnt stack up.

He mustnt have suggested that one or they didnt like the idea of a mortgage to 75.

Most if not all our 4 banks, offer mortgages past retirement age. You just have to prove you have the ability to pay beyond it. Maybe no private pension.

Can't say I blame them, I wouldn't like having one at 65.

qwert_yuiop

motorguy wrote: »

Interesting. They went to a mortgage advisor and the figures didnt stack up.

He mustnt have suggested that one or they didnt like the idea of a mortgage to 75.

Who would? Mortgage paid from pension - no thanks. Then again, rent from pension - who knows, could be worse. We could all be working at that age anyway.

By the way, since you've been renting it out that long, any significant profit has a capital gains tax implication. Also, if it's worth £130,000 or so, and you've £40,000 of equity in it now, you believe it to have appreciated approx 40 percent since the end of the crash? Or have you been paying off the mortgage like a man possessed?
I don't know, maybe you're right. Just wondering.

saverbuyer

qwert_yuiop wrote: »

Who would? Mortgage paid from pension - no thanks. Then again, rent from pension - who knows, could be worse. We could all be working at that age anyway.

By the way, since you've been renting it out that long, any significant profit has a capital gains tax implication. Also, if it's worth £130,000 or so, and you've £40,000 of equity in it now, you believe it to have appreciated approx 40 percent since the end of the crash? Or have you been paying off the mortgage like a man possessed?
I don't know, maybe you're right. Just wondering.

You'll get housing benefit and rates relief if you're retired, stuck and renting.

qwert_yuiop

saverbuyer wrote: »

You'll get housing benefit and rates relief if you're retired, stuck and renting.

What a life. God bless the English taxpayer.

motorguy

qwert_yuiop wrote: »

By the way, since you've been renting it out that long, any significant profit has a capital gains tax implication. Also, if it's worth £130,000 or so, and you've £40,000 of equity in it now, you believe it to have appreciated approx 40 percent since the end of the crash? Or have you been paying off the mortgage like a man possessed?
I don't know, maybe you're right. Just wondering.

I think we owed £120K ish in 2008, and we owe around £100K now. We were already maybe 7 years in to the mortgage, and are approx 14 years in now.

Think it should make £135K+

Profit would be purchase price v selling price. We gave £128.5K for it when it was built, so not sure if any gains tax would be due, given you have a certain allowance anyway and we lived in it as our main home for 7 years but will check it out.

warmhands.coldheart

motorguy wrote: »

I think we owed £120K ish in 2008, and we owe around £100K now. We were already maybe 7 years in to the mortgage, and are approx 14 years in now.

Think it should make £135K+

Profit would be purchase price v selling price. We gave £128.5K for it when it was built, so not sure if any gains tax would be due, given you have a certain allowance anyway and we lived in it as our main home for 7 years but will check it out.

Doesn't matter how long you lived in it, if you have not lived in it for the previous 3 years prior to selling it's seen as an investment and so Capitol Gains Tax is due on profits....

"not sure if any gains tax would be due"..... you should know better, they tax you for everything now-a-day......

motorguy

warmhands.coldheart wrote: »

"not sure if any gains tax would be due"..... you should know better, they tax you for everything now-a-day......

As i said - i'll look into it.

We bought it for £128,500, and its likely to make £135,000.

Theres not a big hill of beans there, plus they take into account how long you've owned it, and what percentage of that time you've lived in it.

Theres a Capital Gains Tax exempt amount for each tax year and from the worlds quickest check, it seems to be £10,600, so we'd be under that anyway.

http://www.theguardian.com/money/2014/feb/12/how-calculate-capital-gains-tax-sell-home

I've an accountant for my business and a conveyancing solicitor so we'll sort it between them.

motorguy

warmhands.coldheart wrote: »

Doesn't matter how long you lived in it, if you have not lived in it for the previous 3 years prior to selling it's seen as an investment and so Capitol Gains Tax is due on profits....

Profit would look like £6,500 if we get £135,000 for it and theres a capital gains tax allowance per year to take into account.