Mortgage owned home or new flat

Matthew1997

I am buying a flat in London. I own my own home elsewhere in the country and my husband will still live in it and I will come home at weekends.

Should I take out the mortgage on my house (mortgage fully paid off) or on the flat.i have heard that if I use my owned house then I won't need to pay capital gains tax. But if I live in london 4 days a week then am I actually resident in the flat?

Any advice appreciated.

eddddy

I think you're mixing up a few unrelated things...

Perhaps one question is:

You and your husband will have two properties. Can you nominate one property as your main residence, and your husband nominate the other as his main residence? (So that both are exempt from CGT.)

The answer is 'No' - married couples can only have one joint main residence. See: http://www.hmrc.gov.uk/manuals/cgmanual/cg64525.htm



Perhaps another question is:

Should you get a mortgage on the house or the flat?

The answer would be to see which one you can get the best deal on. If the house is worth more, the LTV would be lower, so you might get a better rate.

Also, a 'second home' mortgage might be more expensive (perhaps this is why you're thinking of describing the flat as your main property).