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Selling an Inherited Property
andydhill
Posts: 5 Forumite
Ok looking for some advice
I inherited a property in 1992 and lived in it till 2010. Where I turned it into a rental property. We put a buy to let mortgage on the Inherited property and used the equity release as a deposit for our main residence.
We now want to look at selling the Inherited property to use the remaining equity to reduce our mortgage on our main residence.
Over the Years the Inherited property has had new windows, doors , Kitchen, bathrooms, flooring, redecorated, gardens done, new flat roofs all sorts. We recently spent 5K fixing it at the last tenant trashed it. Currently have Tenants
Inherited property was worth about 80k when I inherited it. It is now worth 160K with a 90K mortgage on it.
Our main Residence was bought in 2010 for £250K and is now worth £300k due to market and renovations etc our deposit was 65K and rest was mortgage. We still have about £120K to pay.
So any ideas how we sell the inherited property and dump as much money into the main residence without paying Capital gains.
I inherited a property in 1992 and lived in it till 2010. Where I turned it into a rental property. We put a buy to let mortgage on the Inherited property and used the equity release as a deposit for our main residence.
We now want to look at selling the Inherited property to use the remaining equity to reduce our mortgage on our main residence.
Over the Years the Inherited property has had new windows, doors , Kitchen, bathrooms, flooring, redecorated, gardens done, new flat roofs all sorts. We recently spent 5K fixing it at the last tenant trashed it. Currently have Tenants
Inherited property was worth about 80k when I inherited it. It is now worth 160K with a 90K mortgage on it.
Our main Residence was bought in 2010 for £250K and is now worth £300k due to market and renovations etc our deposit was 65K and rest was mortgage. We still have about £120K to pay.
So any ideas how we sell the inherited property and dump as much money into the main residence without paying Capital gains.
0
Comments
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Your main residence is irrelevant to any tax you'd pay.
There is a defined procedure you go through to calculate tax with a house thats been part residence part not, "letting relief". I believe that procedure changes come April next year in a disadvantageous way.
So perhaps get on and sell it now ?0 -
Work out you CGT when you sell the rental, that is independent of your own house.
Do what you want with the cash.0 -
Ignore your current main residence. Your issue is capital gains tax on a property (the 'inherited' one) which has mixed 'main residence' and 'letting' use.
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg64650p0
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