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apom

Question...

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I might not be.

guy buys property one as a BTL investment and see it rise in value.

Property one is then re-mortgaged, the equity freed up is then invested as a deposit against property two, also a BTL investment..

after subsequent rises he has a portfolio of several properties all mortgaged to the hilt apart from the last, a bigger property which is not rising in profit.

that he has re-mortgaged several times does not get trid of the CGT due between purchase and sale points.

So he has complete debt to current against many proiperties and still owes CGT at sale for the indicidual properties.

so he sells property 1 against which he has £90,000 profit since he bought it.. say five years ago..

against which he owes CGT..

But his mortgage is to say all but £10,000 of sale point..

how does he pay the CGT?

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Don't concern yourself with these bear thoughts. Leave the thinking & money making to us bulls......... :D

I make a fair bit of cash.. just not through property..

As much as I need anyway..

cold always use more though lol.. mate its not about the money..

can you explain what would happen.. there has to be a way round this.... Legally this must have come up..

and my family are landlords.. amongst other things .. I am not..

My family have owned since pre boom and they have raised their rents..

I have nothing against landlords.. I only think that currently house prices are too high for me to enter the market.

can you answer the comment..

(my families properties have been owned for ages.. no CGT is relevent and they have paid of the damned things.. becuase they have had them for ages.. so they wouldn't know this one..)

;)

Edited by apom

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I might not be.

guy buys property one as a BTL investment and see it rise in value.

Property one is then re-mortgaged, the equity freed up is then invested as a deposit against property two, also a BTL investment..

after subsequent rises he has a portfolio of several properties all mortgaged to the hilt apart from the last, a bigger property which is not rising in profit.

that he has re-mortgaged several times does not get trid of the CGT due between purchase and sale points.

So he has complete debt to current against many proiperties and still owes CGT at sale for the indicidual properties.

so he sells property 1 against which he has £90,000 profit since he bought it.. say five years ago..

against which he owes CGT..

But his mortgage is to say all but £10,000 of sale point..

how does he pay the CGT?

You're absolutely right. It's possible in these circumstances to have a property that you can't afford to sell. I'm not sure who has first call on the money in the event of a repossession, the lender or the Inland Revenue. But in any case, if your hypothetical BTLer has to sell a property because of cashflow problems, it will have to be one of the newer ones on which he has made fewer (or no) capital gains.

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Property one is then re-mortgaged, the equity freed up is then invested as a deposit against property two, also a BTL investment..

so he sells property 1 against which he has £90,000 profit since he bought it.. say five years ago..

against which he owes CGT..

But his mortgage is to say all but £10,000 of sale point..

how does he pay the CGT?

Lets hope this thread goes better, I promise to keep Godwin's Law in mind.........:-)

How does he pay the CGT?

Get a loan? steal the money? Sell his other props? It's his problem to resolve.

The fact that he has re-mortgaged his property is his fault.

If I have an end of year Tax bill of £20K....I can't just go on a personal spending spree on my credit card to get out of paying for it.

He's made £90K....The IR is due it's CGT cut.....they don't give up easily.

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I see,

but most would have made previsions for this would they not?

and what if the mewing went toward a new property and a spending spree?

My god.. what if a landlords re-mortgaged presuming he would never sell.. spent it on fast women and slow horses..

and then.. had to sell...

BTL re-mortgaging to spend..

BTL mewers.. ouch..

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I see,

but most would have made previsions for this would they not?

and what if the mewing went toward a new property and a spending spree?

My god.. what if a landlords re-mortgaged presuming he would never sell.. spent it on fast women and slow horses..

and then.. had to sell...

BTL re-mortgaging to spend..

BTL mewers.. ouch..

Yep the consequences are horrific....I remember reading a scenario posted on here (without HPC and quite realistic economic circumstances) where through MEW and further BTL investment (i.e. not even living the fast life on proceeds) that it was possible to lose ones entire portfolio and still ned up owing the Tax man a wadge....I would dig it out but it was about 18mths ago or so.

Can we close off the nastiness on the other thread now please....this ones going so much better

B)

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Fair play..

and in a way it is easy to see why this would happen.

CGT drops over time.

Landlord thinks..

"well, they are worth soo much and I won't sell for years.. maybee a little more from that house.. I will re-mortgage it.. I would like to send my kid to a good school.. give to charity"

its not that they did anything wrong.. but if they sell earlier then they expect they have a big slab if cgt..

Hell I know of a landlord who re-mortgaged to cover his mortgage against void times in the rentals..

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They do what that aussie retard TTRTR does - pretend everything is ok, and even INCREASE their exposure using whatever little equity they still possess by buying AFTER the peak of the market, but STILL at loony prices.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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