BillyCabrio

iTrader: (1)

As i'm having a blonde moment

If my mortgage statement says my current balance owing is £300,000 but my property is worth and sells for £350,000 does that mean after fees etc... that i could walk away with nearly £45,000 in equity?


I know in theory it does, but i' sure theres a catch

p.s. No i am not minted

SapphyMike

totally depends.

you will have fees to the agent to pay.

and

you current balance may be what you owe inc interest.

collierm

Correct.

You'd only be liable for capital gains if it was a second home.

OldSkoolRS

Yeah.

Get the beers in

xr2i-carl

capital gains tax fuckin sux

collierm

Find me a tax that isn't

BillyCabrio

iTrader: (1)

You mean as in owning 2 places at the sametime? Fat chance PMSL

BillyCabrio

iTrader: (1)

Its an interest only mortgage, plus yeah i forgot about the dreaded estate agent fees

Still, there'll be a few quid left over (once all the debts have been cleared, so that will be more like pennies )

SapphyMike

ah, interest only!

if you come away with pennies, rather than debt, then its a good thing right?

When i sell my place and pay off the ex, i'm still gonna be living at number 56 shit street

dojj

iTrader: (3)

estate agent fees
capital gains tax
early repaymeny fees to the bank
etc
etc
estate agents normally take 2 or 3% of the selling price so thats close to £10k if you get a robbing fooker

scottp

as far as i am aware, capital gains tax is not applicable to a main residence sale, which would mean as long as you or someone in your immediate family live in over 40% of the property then it would not be subject to CGT. (In correct terms it is releived of CGT)

Hope that helps.

Thanks

RichardPON

You wouldn't "walk away with equity" as such, but you would clear some profit, albeit relative to inflation, capital appreciation of the next house purchase etc

May also be a puntive fee for settling the mortgage outside of any agreed repayment date.

scottp

not all mortgages have an early repayment charge,or if it does it may be worth giving you provider a call and seeing if they can just tranfer ther mortgage to another property, at the end of the day they are keeping your business.

Any more questions just ask.