Hi all
We have managed to pay off the mortgage on our 3 bed semi, valued @350k.
We are now looking to buy a bigger house and have some savings. My question really is whether we should sell our 3 bed and be mortgage free (or nearly) in the new house, or hold onto it and rent it out?
We managed to pay off our mortgage cos 2 of us were working, but we'll only have one wage now, so not as much cash each month. Also if we want to do home improvements, would it be better to have a mortgage to fund that as opposed to just a standard loan.
Also, what taxes have to be paid if we rent out our 3bed on rental income and also if we later have to sell it ( as background, it cost 330k plus stamp duty when we bought it and had a mortgage of @200k)
Finally if we do decide to sell, how quickly do we have before its liable for tax?
Thanks for any advice
We have managed to pay off the mortgage on our 3 bed semi, valued @350k.
We are now looking to buy a bigger house and have some savings. My question really is whether we should sell our 3 bed and be mortgage free (or nearly) in the new house, or hold onto it and rent it out?
We managed to pay off our mortgage cos 2 of us were working, but we'll only have one wage now, so not as much cash each month. Also if we want to do home improvements, would it be better to have a mortgage to fund that as opposed to just a standard loan.
Also, what taxes have to be paid if we rent out our 3bed on rental income and also if we later have to sell it ( as background, it cost 330k plus stamp duty when we bought it and had a mortgage of @200k)
Finally if we do decide to sell, how quickly do we have before its liable for tax?
Thanks for any advice