How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask INC Law Your Own Question
INC Law
INC Law, Solicitor-Advocate
Category: Property Law
Satisfied Customers: 15884
Experience:  LL.B, LPC, LL.M, Pg.Dip, Solicitor-Advocate. UK Practising Certificate issued by SRA., DIFC Courts Registered (Dubai)
12179604
Type Your Property Law Question Here...
INC Law is online now

I have a buy to let property in my own name worth £440,000

This answer was rated:

I have a buy to let property in my own name worth £440,000 and a the BTL mortgage is £184,000.. I also have a residential property with my ex-partner and a joint mortgage on this. I am living in this property. I wish to keep this property and buy him out. I am happy to gift the buy to let property to him. I know there are capital gains tax implications that can only be avoided if I make the buy to let my residential property for six months. I am just asking what the best way is to do this and will the BTL mortgage need to be paid off in full prior to me making it my residential property or can I just inform the mortgage company that this is the case? Or is there another way that this outcome could be achieved?

Hi,

Thank you for your query.  I am a Solicitor-Advocate in the UK and will be assisting you with your question today.

I am afraid the only way of doing this would be to inform your mortgage lender that you will be moving into the property and then to reside at the address for at least 6 months. Otherwise, tejre would be a CGT liability.

I hope this answers your.  If you have any further questions, please do not hesitate to ask.

Many thanks

Customer: replied 6 days ago.
Thank you. Just to clarify so it would not be necessary for the BTL mortgage to be paid off, just for me to move in and make it my residential home? Also to inform the mortgage company that I have had to do this? The issue with the CGT is that I only paid £40,000 for it in 1993 so that is a lot of CGT to pay. I only actually put it on a BTL in 2014 when I purchased the house I am living in with my ex. It as then valued at £400,000 odd.

Hi,

Yes, provided the mortgage company consent to it, it should not be an issue.

You will.also have to ensure you are registered to vote from the address.

I hope this helps.

INC Law and other Property Law Specialists are ready to help you
Customer: replied 6 days ago.
It really does thanks so much.

It's a pleasure.

Good luck!