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Keep properties or reinvest in new one

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EssexGirl71
EssexGirl71 Posts: 5 Forumite
in House buying, renting & selling
My partner and I both own a property each and we live in one of them. The other has been changed to a buy to let mortgage for the past couple of years. We want to move somewhere bigger and are undecided as to what to do for the best, do we sell one or both properties and put the capital into the new one reducing the new mortgage and avoiding stamp duty? If we do sell just one, which one do we sell? One is bringing in a 70% profit just now, not sure what the one we live in would bring in just now if we let it but imagine it would be quite good. I have my own thoughts, however, it would be good to get another perspective and others' thoughts??

Hope the above makes sense :A
Thanks in advance.
«1

Comments

  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    My thoughts are, without knowing any of the amounts involved, without knowing how large your mortgage would be with and without selling the BTL, what the extra SDLT would cost, your tax status, etc etc, how on earth could anyone venture a guess ?
  • sparky130a
    sparky130a Posts: 660 Forumite
    EssexGirl71 wrote: »
    One is bringing in a 70% profit just now,

    I'll bet my pair to a barn dance it isn't.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    If you keep both properties, you'll be paying the 3% SDLT hike on your new home. This will make a BIG dint in your letting income. If you sell your current let, and let your current home, you would also be paying the 3%. If you sell your current home, you won't.

    Is your current home sensibly lettable?
  • EssexGirl71
    EssexGirl71 Posts: 5 Forumite
    Thank you for replies. Yes, current home is sensibly lettable. If we sell the buy to let we expect to get £50k out of it after fees. Mortgage on current home is £140k and not much equity in it just now. Property we would ideally like to buy is £330k. I think as you say Adrian it paying the 3% SDLT will make a big impact on letting income.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    How will the BTL tax changes affect you?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Crashy_Time wrote: »
    How will the BTL tax changes affect you?
    Presumably the 70% profit will go down to 60%!
  • TrickyDicky101
    TrickyDicky101 Posts: 3,530 Forumite
    Part of the Furniture 1,000 Posts
    I think you need to sell both current properties in order to avoid additional rate SDLT (assuming you and partner aren't married). That is if you both want to buy the next property jointly.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    G_M wrote: »
    Presumably the 70% profit will go down to 60%!


    Don`t think it was clear how the 70% profit was made?
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Crashy_Time wrote: »
    Don`t think it was clear how the 70% profit was made?
    Very clear...

    Take one finger.
    Dampen it.
    Stick it in the air.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Crashy_Time wrote: »
    Don`t think it was clear how the 70% profit was made?
    It was about as clear as my workings on how the drop to 60% was made.
This discussion has been closed.
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