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Very basic mortgage/house selling question
Checkpoint_Charlie
Posts: 22 Forumite
Hello there! Simple question from someone who has never sold a house!
- There is £150K to pay on the mortgage (over 17 years)
- Recent valuation of house suggests value of approx £300K
- Let’s say the house sells for £300k. The £150K and the early repayment charge get taken out of the £300K - let’s just say £140K is left to keep the numbers easy.
- There is £150K to pay on the mortgage (over 17 years)
- Recent valuation of house suggests value of approx £300K
- Let’s say the house sells for £300k. The £150K and the early repayment charge get taken out of the £300K - let’s just say £140K is left to keep the numbers easy.
Is there a massive tax on that £140K? Are there laws around what you have to do next? I realise I sound like a fool 
but it feels unlikely/too good to be true that it’d just be cash in the bank?
but it feels unlikely/too good to be true that it’d just be cash in the bank? 0
Comments
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Here is a calculator:
https://www.gov.uk/tax-sell-property/work-out-your-gain
But let's say you bought it for £200k so in this example you will pay about £20k taxes.
Edit:
This is the case when it isn't your home, but let's say another property.1 -
Is the property your home or a rental property?
If it is (and always has been) your home, there is no tax payable on sale.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
If you are selling your home, it would just be 'cash in the Bank' no tax (but, of course no home).but it feels unlikely/too good to be true that it’d just be cash in the bank?
I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1 -
Yes - it is and always has been my home since I bought it.
So I guess that’s a pretty good and clear outcome. Thanks for responses everyone!1 -
Be aware that you get 6 months FSCS protection on the proceeds of your sale (up to £1 million). After 6 months it reverts to standard £85,000 protection. If you're not planning on buying another house with the proceeds, you'd need to split it across a couple of (or more?) accounts with different banks to have 100% FSCS protection.0
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