Buying a second home

autumn2012_2

Hi, Looking for advice, we are thinking about buying a second home and renting out our existing home. Our mortgage is currently 65k on a property worth in excess of 100k. What are the rules around buying a second home (this would be mortgaged) and if we came to later sell one of the properties would we be liable for any CGT etc. Any help would be appreciated.

HappyMJ

autumn2012 wrote: »

Hi, Looking for advice, we are thinking about buying a second home and renting out our existing home. Our mortgage is currently 65k on a property worth in excess of 100k. What are the rules around buying a second home (this would be mortgaged) and if we came to later sell one of the properties would we be liable for any CGT etc. Any help would be appreciated.

You can own as many properties as you want.

You may be liable to CGT you may not. You've got some exemptions you can use which might reduce the liability to zero.

brit1234

You will also have to pay an extra 3% stamp duty.

autumn2012_2

brit1234 wrote: »

You will also have to pay an extra 3% stamp duty.

The property is only on for £85000 (in need of renovation) so we would be exempt from SD

jaybeetoo

autumn2012 wrote: »

The property is only on for £85000 (in need of renovation) so we would be exempt from SD

You'd have to pay £2,550 stamp duty

autumn2012_2

jaybeetoo wrote: »

You'd have to pay £2,550 stamp duty

I forgot about recent changes to stamp duty - still on a property of 85k its still affordable

Old_Git

autumn2012 wrote: »

Hi, Looking for advice, we are thinking about buying a second home and renting out our existing home. Our mortgage is currently 65k on a property worth in excess of 100k. What are the rules around buying a second home (this would be mortgaged) and if we came to later sell one of the properties would we be liable for any CGT etc. Any help would be appreciated.

can you afford to pay two mortages .
How do you intend to finance the second purchase .Have you a deposit for the new house.

iantojones40

I suppose you've also 'forgot' about the various btl tax changes that are due to start being implemented from early 2017?

AnotherJoe

Posts like this from wannabee-landlords who think its an easy route to riches remind me of those stories you see about someone buying a boat and then setting out to cross the Atlantic the next week after reading a book on sailing, and needing to be rescued before they get out of the harbour. Except they haven't even read the book

Hint ; Find a very recent book on becoming a landlord and read that first.

kinger101

Why not just Google and find out the basics before posting questions?

iantojones40

AnotherJoe wrote: »

Posts like this from wannabee-landlords who think its an easy route to riches remind me of those stories you see about someone buying a boat and then setting out to cross the Atlantic the next week after reading a book on sailing, and needing to be rescued before they get out of the harbour. Except they haven't even read the book

Hint ; Find a very recent book on becoming a landlord and read that first.

Now that's not fair... I'm sure just like most other wannabee landlords this one has carried out extensive research and learnt everything he could possibly ever need to know by watching a few episodes of the wonderfully informative and entirely factual Homes Under the Hammer.