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HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 138
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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I am remortgaging 2 buy to let properties and they are both

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Hi, I am remortgaging 2 buy to let properties and they are both ready to complete. My dilemma is that we are placing the funds (equity) from these two remortgages into a residential property but this process hasn't even begun yet - searches not even begun. Would it be better to wait for all mortgages/remortgages to complete all at the same time so as to avoid having large lump sums in my bank account? Or is it ok to complete the remortgages now even though the residential may not complete for another few months?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hello, I am one of the experts on Just Answer nd pleased to be able to help you with your question.

I would suggest that whilst the Stamp Duty, or rather its local equivalent, is frozen, it would be more economical not to delay.

Customer: replied 5 days ago.
I am hoping the residential purchase will go through soon.
but is it advisable to complete on the remortgages without being ready to place the funds directly into the next property? Are there any tax implications of this? Thank you

It all depends on the time factors as the rates will increase after the duty holiday ends.

Customer: replied 5 days ago.
My question isn't about stamp duty. It is about completing on the remortgages without having a property to place those funds directly into.

Not a good idea.

Customer: replied 5 days ago.
can you explain why?

Because you will be facing a higher cash out turn and more delay could cause problems.

Hi,

I am an Advisor at Just Answer and i am happy to assist you with your query.

If I'll be you, I'll wait till the purchase process of residential property is started. Once the process is initiated then you can get them re-mortgage. However, if you want to get them re-mortgage now and keep cash in your account then it's you call.

I hope it answers your query.

Regards

HM Accountax

Customer: replied 5 days ago.
Thank you - so will not be a problem if I remortgage now and then hold cash to fund residential in a few months?
Or there will be a tax implication? I want to remortgage now as my new mortgage payments will be a lot lower.

There won't be any tac implications

HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 138
Experience: I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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