Moving into our Buy to let and paying off its mortgage - Question

janzbro

Hi all, I hope some of you may be able to help as I have little knowledge of these matters. 
We have accepted an offer on our current home and we plan to move back into our other property (which was previously our home/main residence) that was a rental. 
Would we incur any fees / taxes or should there be anything we should be aware of by using the profit from our current home sale to pay off its mortgage and the mortgage on the rental property. 
The Mortgage on the rental is currently a BTL and we will be moving to this and using as our main residence again.
Many thanks in advance for any info you could give.

Slithery

Mmmm, tasty.

janzbro

thanks for your input - that should of been BTL not BLT a tasty sandwich 

theartfullodger

Sadly I appear unable to read the terms of your BTL mortgage: Does it permit you moving back in? and does it state what additional fees may be charged, please?

I so admire your optimism in asking a bunch of anonymous forum members rather than reading the paperwork you already have been sent.

Cheers!

PS I've always ignored terms of BTL mortgages.. Artful: Landlord since 2000 (actually 1980s.. then stopped..)

bolwin1

janzbro said:

thanks for your input - the BLT is not a tasty sandwich 

Neither is it a mortgage. You mean BTL - Buy To Let. 

bolwin1

But to answer your question, other than the standard Stamp Duty & other usual buying & selling costs, there's nothing else to  consider re taxes etc. 

janzbro

thanks bolwini, much appreciated 
I was thinking there maybe some sort of cap gains tax or gods knows what else as we are moving back to the BTL 

davidmcn

theartfullodger said:

Sadly I appear unable to read the terms of your BTL mortgage: Does it permit you moving back in? and does it state what additional fees may be charged, please?

The mortgage conditions aren't relevant if it's being redeemed. Any early repayment charges would be, of course.

janzbro

thanks davivmcn - were not tied into any deal - no early repayment fees

AdrianC

janzbro said:

I was thinking there maybe some sort of cap gains tax or gods knows what else as we are moving back to the BTL 

It's just a house you own. No more, no less.

If you rent it out, you pay tax on the income.
When you buy it, you pay SDLT - and if you own other houses, you may pay more.
When you sell it, if you haven't live in it, you may pay CGT.

If you have a mortgage, your lender may insist on you living there - or may insist on you not living there, depending on the type of mortgage.

Apart from that, that's IT.

janzbro

thank you very much, we will be living in it for now and we have lived in it previously for 12 years before moving to our current home