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  • FIRST POST
    • chris316
    • By chris316 14th Feb 18, 12:23 AM
    • 12Posts
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    chris316
    Sell BTL
    • #1
    • 14th Feb 18, 12:23 AM
    Sell BTL 14th Feb 18 at 12:23 AM
    Hi, hope I'm on the right forum here. I have 2 BTL properties that I've decided aren't worth the hassle so I'm thinking of selling them. I think I'm pretty close to being able to pay off my residential mortgage with the equity in the 2 BTL, would it benefit me to see a financial advisor/accountant before making a decision?
    Cheers
Page 1
    • 00ec25
    • By 00ec25 14th Feb 18, 8:23 AM
    • 6,240 Posts
    • 5,761 Thanks
    00ec25
    • #2
    • 14th Feb 18, 8:23 AM
    • #2
    • 14th Feb 18, 8:23 AM
    Hi, hope I'm on the right forum here. I have 2 BTL properties that I've decided aren't worth the hassle so I'm thinking of selling them. I think I'm pretty close to being able to pay off my residential mortgage with the equity in the 2 BTL, would it benefit me to see a financial advisor/accountant before making a decision?
    Cheers
    Originally posted by chris316
    ?????

    the answer to your question depends entirely on whether you have even the most basic understanding of your tax position when selling???

    have you worked out how much will you be left with after CGT and repayment of the loans on the let properties?

    That said if you want out of being a LL then best to get out whether it is financially sound to do so or not.
    • AnotherJoe
    • By AnotherJoe 14th Feb 18, 8:41 AM
    • 8,974 Posts
    • 9,860 Thanks
    AnotherJoe
    • #3
    • 14th Feb 18, 8:41 AM
    • #3
    • 14th Feb 18, 8:41 AM
    Good point, you should at least contemplate selling over two financial years so as to maximise yiyr CGT allowance. Too late to get one sale in this financial year I'd have thought unless you get lucky.
    • Crashy Time
    • By Crashy Time 14th Feb 18, 12:42 PM
    • 5,873 Posts
    • 2,318 Thanks
    Crashy Time
    • #4
    • 14th Feb 18, 12:42 PM
    • #4
    • 14th Feb 18, 12:42 PM
    Good advice.
    • Comms69
    • By Comms69 14th Feb 18, 12:49 PM
    • 2,970 Posts
    • 2,935 Thanks
    Comms69
    • #5
    • 14th Feb 18, 12:49 PM
    • #5
    • 14th Feb 18, 12:49 PM
    Are they currently let, and if so, how long left on fixed terms? (as an aside, when did the tenancies begin?)
    • Crashy Time
    • By Crashy Time 15th Feb 18, 1:49 PM
    • 5,873 Posts
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    Crashy Time
    • #6
    • 15th Feb 18, 1:49 PM
    • #6
    • 15th Feb 18, 1:49 PM
    Best to get them on the market ASAP, drop the price a bit to attract FTB maybe because BTL mortgage approvals are plummeting, and if you can`t make it work it is unlikely that another BTL landlord will be able to?
    • chris316
    • By chris316 15th Feb 18, 4:08 PM
    • 12 Posts
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    chris316
    • #7
    • 15th Feb 18, 4:08 PM
    • #7
    • 15th Feb 18, 4:08 PM
    have you worked out how much will you be left with after CGT and repayment of the loans on the let properties?

    Not really sure on what capital gains tax I would be paying as both BTL properties have been my home for a fair amount of time.
    1st, I lived in for 12 years rented out for 4.
    2nd, I lived in for 4 years only been rented out about 9 months.

    YESTERDAY 12:49 PMComms69Are they currently let, and if so, how long left on fixed terms? (as an aside, when did the tenancies begin?)
    Both currently yet, both about 18 month on fixed terms, early repayment fee is roughly 1k each.

    Best to get them on the market ASAP, drop the price a bit to attract FTB maybe because BTL mortgage approvals are plummeting, and if you can`t make it work it is unlikely that another BTL landlord will be able to?
    Both tenants love the properties and want to stay long term so was only really looking to sell to a BTL landlord
    • Comms69
    • By Comms69 15th Feb 18, 4:20 PM
    • 2,970 Posts
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    Comms69
    • #8
    • 15th Feb 18, 4:20 PM
    • #8
    • 15th Feb 18, 4:20 PM
    Not really sure on what capital gains tax I would be paying as both BTL properties have been my home for a fair amount of time.
    1st, I lived in for 12 years rented out for 4.
    2nd, I lived in for 4 years only been rented out about 9 months.



    Both currently yet, both about 18 month on fixed terms, early repayment fee is roughly 1k each.



    Both tenants love the properties and want to stay long term so was only really looking to sell to a BTL landlord
    Originally posted by chris316
    Fixed term of tenancy, not mortgage...
    • silvercar
    • By silvercar 15th Feb 18, 5:05 PM
    • 37,092 Posts
    • 156,248 Thanks
    silvercar
    • #9
    • 15th Feb 18, 5:05 PM
    • #9
    • 15th Feb 18, 5:05 PM
    Both tenants love the properties and want to stay long term so was only really looking to sell to a BTL landlord
    Originally posted by chris316
    This will severely limit your potential market. More likely to get a sale at or near market value if the properties are empty.
    • dimbo61
    • By dimbo61 15th Feb 18, 5:48 PM
    • 9,844 Posts
    • 5,294 Thanks
    dimbo61
    So you need to speak to an accountant and lood at your options.
    Are you claiming all the allowances allowed?
    Are you married ?
    I could go into how much each property is worth and CGT allownaces but a Good Accountant can do that for you and his/her costs are Tax deductable
    • Crashy Time
    • By Crashy Time 15th Feb 18, 11:03 PM
    • 5,873 Posts
    • 2,318 Thanks
    Crashy Time
    This will severely limit your potential market. More likely to get a sale at or near market value if the properties are empty.
    Originally posted by silvercar

    He wants to sell to a BTL landlord though, would have thought good long term tenants would be a bonus?
    • caronoel
    • By caronoel 21st Feb 18, 6:50 AM
    • 832 Posts
    • 1,071 Thanks
    caronoel
    Best to get them on the market ASAP, drop the price a bit to attract FTB maybe because BTL mortgage approvals are plummeting, and if you can`t make it work it is unlikely that another BTL landlord will be able to?
    Originally posted by Crashy Time
    Ignore the rantings of Crashy.

    He sold up and moved into a rented room in the mid 90s, waiting for the crash that never came.

    Now he's single, still renting and in his mid 50s. What a catch for the ladies!

    He has almost stopped posting on the Debate house prices board, as they rip his wisdom on house prices to pieces over there
    • missile
    • By missile 21st Feb 18, 7:02 AM
    • 9,377 Posts
    • 4,651 Thanks
    missile
    Both tenants love the properties and want to stay long term so was only really looking to sell to a BTL landlord
    Originally posted by chris316

    Your target market will be small and you would need to demonstrate a good return potential buyers.

    What do you think properties are worth and how much rental income do you receive?
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
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