Advice on selling my Rental Property before the Autumn Budget

NewLandlord

Hi

I am a landlord with a single property in London that is about to become vacant.

I know that this is a very tight deadline, but I would like to sell the house before the Autumn budget in late November because of the potential capital gains tax changes on the ~150K increase over its purchase price. The property is in a decent state, and is close to a train station but is otherwise unremarkable.

I assume I should speak with a conveyancer/solicitor immediately. However, any additional advice or tips as to how I can best go about this would be greatly appreciated.

Thanks!

Grumpy_chap

NewLandlord said:

Hi

I am a landlord with a single property in London that is about to become vacant.

I know that this is a very tight deadline, but I would like to sell the house before the Autumn budget in late November because of the potential capital gains tax changes on the ~150K increase over its purchase price. The property is in a decent state, and is close to a train station but is otherwise unremarkable.

I assume I should speak with a conveyancer/solicitor immediately. However, any additional advice or tips as to how I can best go about this would be greatly appreciated.

Thanks!

If you put the property on the market now - bear in mind it is the middle of the school holiday period - and aiming for exchange before end October, you may have to discount the property value to achieve that "fire sale" timeline.  Of course, your property may be in a hot spot where everything sells as soon as it comes to market, but there are not many areas meeting that criteria at present.

What discount do you need to offer up to achieve the "fire sale" timeline?
How does that certainty of reduced gain compare against whatever possible reduced gain you think may come about because of possible taxation changes that are not confirmed and may never happen?

Hoenir

Price it right and hope for a cash buyer. 

Albermarle

Hoenir said:

Price it right and hope for a cash buyer. 

But be aware that even then a quick completion date is not guaranteed. For example the survey might come up with problems and it is not unheard of for cash buyers having problems getting the cash when it matters.
So you might agree sale with a discount, but it still gets delayed until after the budget.

Hoenir

Albermarle said:

Hoenir said:

Price it right and hope for a cash buyer. 

But be aware that even then a quick completion date is not guaranteed. For example the survey might come up with problems and it is not unheard of for cash buyers having problems getting the cash when it matters.
So you might agree sale with a discount, but it still gets delayed until after the budget.

Autumn Statement is in 80 days time. Waiting for the buyer to obtain a mortgage offer just to get the ball rolling will expend valuable time. Contracts need to be exchanged. 

Grumpy_chap

Albermarle said:

But be aware that even then a quick completion date is not guaranteed. 

There was another thread on this topic where it is indicated that the relevant date for CGT purposes is date of Exchange and not Completion.
https://forums.moneysavingexpert.com/discussion/comment/80931100#Comment_80931100

Obviously, the rules could be changed but I would not expect them to be changed retrospectively.  TBH, the number of properties between Exchange and Completion at any given date is always a small number in the grander scheme of things and it is probably simply not worth the potential backlash.