Sell BTL

chris316

Hi, hope I'm on the right forum here. I have 2 BTL properties that I've decided aren't worth the hassle so I'm thinking of selling them. I think I'm pretty close to being able to pay off my residential mortgage with the equity in the 2 BTL, would it benefit me to see a financial advisor/accountant before making a decision?
Cheers

00ec25

chris316 wrote: »

Hi, hope I'm on the right forum here. I have 2 BTL properties that I've decided aren't worth the hassle so I'm thinking of selling them. I think I'm pretty close to being able to pay off my residential mortgage with the equity in the 2 BTL, would it benefit me to see a financial advisor/accountant before making a decision?
Cheers

?????

the answer to your question depends entirely on whether you have even the most basic understanding of your tax position when selling???

have you worked out how much will you be left with after CGT and repayment of the loans on the let properties?

That said if you want out of being a LL then best to get out whether it is financially sound to do so or not.

AnotherJoe

Good point, you should at least contemplate selling over two financial years so as to maximise yiyr CGT allowance. Too late to get one sale in this financial year I'd have thought unless you get lucky.

Crashy_Time

Good advice.

Comms69

Are they currently let, and if so, how long left on fixed terms? (as an aside, when did the tenancies begin?)

Crashy_Time

Best to get them on the market ASAP, drop the price a bit to attract FTB maybe because BTL mortgage approvals are plummeting, and if you can`t make it work it is unlikely that another BTL landlord will be able to?

chris316

have you worked out how much will you be left with after CGT and repayment of the loans on the let properties?

Not really sure on what capital gains tax I would be paying as both BTL properties have been my home for a fair amount of time.
1st, I lived in for 12 years rented out for 4.
2nd, I lived in for 4 years only been rented out about 9 months.

YESTERDAY 12:49 PMComms69Are they currently let, and if so, how long left on fixed terms? (as an aside, when did the tenancies begin?)

Both currently yet, both about 18 month on fixed terms, early repayment fee is roughly 1k each.

Best to get them on the market ASAP, drop the price a bit to attract FTB maybe because BTL mortgage approvals are plummeting, and if you can`t make it work it is unlikely that another BTL landlord will be able to?

Both tenants love the properties and want to stay long term so was only really looking to sell to a BTL landlord

Comms69

chris316 wrote: »

Not really sure on what capital gains tax I would be paying as both BTL properties have been my home for a fair amount of time.
1st, I lived in for 12 years rented out for 4.
2nd, I lived in for 4 years only been rented out about 9 months.



Both currently yet, both about 18 month on fixed terms, early repayment fee is roughly 1k each.



Both tenants love the properties and want to stay long term so was only really looking to sell to a BTL landlord

Fixed term of tenancy, not mortgage...

silvercar

chris316 wrote: »

Both tenants love the properties and want to stay long term so was only really looking to sell to a BTL landlord

This will severely limit your potential market. More likely to get a sale at or near market value if the properties are empty.

dimbo61

So you need to speak to an accountant and lood at your options.
Are you claiming all the allowances allowed?
Are you married ?
I could go into how much each property is worth and CGT allownaces but a Good Accountant can do that for you and his/her costs are Tax deductable

Crashy_Time

silvercar wrote: »

This will severely limit your potential market. More likely to get a sale at or near market value if the properties are empty.

He wants to sell to a BTL landlord though, would have thought good long term tenants would be a bonus?