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    • leemarkadams
    • By leemarkadams 11th May 18, 6:19 PM
    • 2Posts
    • 0Thanks
    Renting out only home and CGT and what mortgage etc
    • #1
    • 11th May 18, 6:19 PM
    Renting out only home and CGT and what mortgage etc 11th May 18 at 6:19 PM
    Afternoon all,
    We are planning on sailing around the Med from the middle of next year and therefore our home will be empty and we will be renting it out. So have a few questions:

    1. As it is our main residence I assume we will need to change our mortgage from the current repayment to a Buy To Let. I expect the mortgage debt on our house to be about 50K and the home value to be 450K. Is there a mortgage that we could get interest only but would allow us to overpay as much as we want, as the flexibility of that would be good.

    2. When we sell the house would we be liable for Capital Gains Tax as it is our only home, or what do we have to do to avoid that as in move back in etc?

    Thanks in advance
Page 1
    • dimbo61
    • By dimbo61 11th May 18, 7:26 PM
    • 10,150 Posts
    • 5,490 Thanks
    • #2
    • 11th May 18, 7:26 PM
    • #2
    • 11th May 18, 7:26 PM
    Well you could just ask for consent to let with your current lender.
    With the current CGT allowances for both yourself and your other half 11,700 each and the fact it was your main residence so another 40,000 allowance it should be a long time before you need to worry about CGT.
    However finding out your responsibilities as a landlord will make good bedtime reading.
    • leemarkadams
    • By leemarkadams 16th May 18, 12:41 PM
    • 2 Posts
    • 0 Thanks
    • #3
    • 16th May 18, 12:41 PM
    • #3
    • 16th May 18, 12:41 PM
    Thanks and we are aware we need to look into the legalities of being a landlord etc. My main concern is regarding the CGT, as I understand what you are saying but is any CHT taken form the original purchase price (a lot less as it was 14 years ago) or the difference from when the property is rented out? reason being we have a lot of equity in the house and do not want to loose any of what we have gained up until now.

    Hope that makes sense?
    • foxy-stoat
    • By foxy-stoat 16th May 18, 4:55 PM
    • 3,540 Posts
    • 1,997 Thanks
    • #4
    • 16th May 18, 4:55 PM
    • #4
    • 16th May 18, 4:55 PM
    Read up on the HMRC web site about CGT and how to be exempt for paying any when you sell. Just following the rules.
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