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Looking for advice! London flat to rent - new house to co-buy?

Hi all,

I'm quite new here and feel completely out of my depth with the decisions I need to make.

I am terrible with numbers/finances/knowing what to do with mortgages. Not getting much help from my usual mortgage broker so I hope some of you can offer some thoughts for my so called pennies.

I have owned my own flat in London for 16 years, survived buying my ex out and have a nice amount of equity in it. My LTV on my current mortgage is 41%. I had it valued about 16 months ago and also had a rental valuation done at the same time so know my rough figures.

My flat is in a nice complex that is often sought after and it has done nothing but go up in value over the years. A crossrail station will open 2 miles away, hopefully next year. A new school is being built exactly opposite - so I don't want to sell. It's my nest egg!

My boyfriend and I want to buy a new house together. I would like to rent my London flat out and he would like to sell his own house. I release equity from my flat as a deposit and convert to a BTL mortgage. BF takes his sale proceeds and uses them as his part of the deposit. We together get a new joint mortgage. We have seen a house we like and made a verbal offer which was accepted. Nothing signed - all verbal - all waiting for BF to sell his house.

I am in full time employment now but would like to start my own business later this year and will be going self employed. So I need to get my borrowing done now.

I have no savings (but do have 3 pension plans) so I am hoping my big equity release will cover getting my flat ready to be rented out, enough to put aside for a few months mortgages payments on the flat and new house in my case my business is slow going/I lose a tenant etc.

BUT accountant friend of a friend said I am mad to not sell it now as the capital gains tax in a few years will be £100K or more if I sell it then/later.

If I do rent it out now on a BTL mortgage, I have to pay something like £34K stamp duty on the house we would like to buy.

I just don't know what to do here. I am in way over my head. My gut is to keep the London property and just make the figures work around that.

I assume my rental income will be taxable as well though.

Am I a fool?

Anyone know any good financial advisors or impartial brokers?

Thanks!
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