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Selling V renting
Mrs_pbradley936
Posts: 14,573 Forumite
I wonder if anyone has any info/advice for a situation. I have a property that is owned outright and is currently let out. If the tenant wants to buy it from me is it possible that I carry the mortgage rather than them getting one from a High Street lender?
Will the money they pay be treated differently? What I mean is now it is income but does that change.
Will the money they pay be treated differently? What I mean is now it is income but does that change.
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Comments
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You certainly can loan money to whoever you like. For tax etc, this will be treated as though they'd actually paid you the full purchase price up front (so your liability for capital gains tax will be based on the actual value of the house), and of the repayments they make to you, the portion that is interest will be treated as income.
However, any mistake in this could effectively cost you the house, so get off the forums and get proper legal advice. And don't do it at all unless you're genuinely prepared to either (a) take this person to court, repossess the house and leave them homeless, or (b) lose a large sum of money, if they fall behind in repayments.0
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