Old_Fart

I'm selling a small flat for around £80k and I was wondering what costs I am going to inccur apart from agents fee? IE Solicitors etc.
Any help/websites appreciated.
Ta
Chuck

RON

Hi Chuck,
have you actually sold? B/mth innit!!
Might know someone who's looking for a pad!!
I'll mail him anyway, jus to let him know.
Ron.

Old_Fart

Well I've had a bid which I accepted today...but the agents being a bit cagey about it so I'm not sure it's a real bid...maybe just trying to make me think he's working...
We'll see though, fingers crossed!
Chuck

Neil Smalley

Stamp Duty (£800)
If it's not your main residence then Capital Gains tax(dunno, but treat the same as income tax)
Estate Agents around 1.2%
Legal fees ~£800

Old_Fart

Stamp duty is just buyer isn't it?
Capital gains is a mess..I've had it for 12+ years so loads of reductions apply..tapering, last 3 years exempt...I'm not really sure how to work it out even after going thru the inland revenue site
Thanks
c

Neil Smalley

Yeah SD's buyer only, but are you selling for cash or to buy somewhere else?

Old_Fart

Cash...considering converting my sensible appreciating asset into a Noble
Cman

Neil Smalley

Then why sell, why not just re-finance? If you're letting the place out let the tennent pay the mortgage. That way you keep your appreciating asset, and have no tax to worry about?

Old_Fart

My personal opinion is property in the South East isn't going to rise anymore for a while. I have a ton of equity in this place so why would I want to borrow money?
Also, with regards to capital gains, as the gap between the time it was my sole residence and the last 3 year exemption period grows I will be lible for a bigger tax hit at 40%..so rental return is taxed at 40%, then capital gains is taxed at 40%...all in all the return is pretty poor these days.
Cash is king Neil
Rgds
Chuck

Dark Blue Mark

Hi Chuck,

Can you mail me some details of it, im just starting to look at the moment. As long as its not in Boscombe and not near Rich B

MB

chris singleton

All of the above sounds about right. You might have to cough up some fees to the managing agents/landlord depending on what type of flat it is for service charge accounts, buildings insurance details etc, shouldn't be anything more than £50-£150.00. You might also have to pay ground rent and service charge up for the year but this can be apportioned back in your favour on completion.

Obviously no stamp duty, but cant comment on capital gains as I'm no expert there.

Drop me a line if you have any other queries.

Chris.

Diesel

I think CGT is pro rata for the time owned after the 3 year excemption lapses?

I'm looking into offshore trusts (whatever that is) so I can keep the flat on as a tenancy, but avoid huge CGT if it goes up by £200,000 in the next 2o years. It's gonna b my pension after all!

Neil Smalley

Chuck
YHM

BTW Tax free cash is king

[Edited by Neil Smalley - 6/10/2003 10:27:05 AM]