Sell my flat before marriage???

[Hparker21]

I am going to marry my DP next year and we share an 8 month old baby. I moved into the house he owns and he pays the mortgage and most of the bills as he earns way more than me. I pay the childcare, food, car loan plus the mortgage on the flat I own which is now tenanted. We’re both freelance and have no pension (I have about 15k in a S&S ISA and DD has a JISA) The flat has had tenants for a year and I understand that has implications for CGT-but the big jump in value has been over the last ten years so there wouldn’t be much if I sold it now. I believe there are more tax implications if I sold it after marriage though.

I am basically torn whether to sell it and put it into a pension and investments for our retirement or keep it, knock off the mortgage in 10 and start investing the income. I love the flat and it does make me feel secure to know I have bricks and mortar if it all goes tits up but the market is topping out and the growth in value won’t equal well-chosen investments. I did have a consultation with an IFA but he wanted 2K before he’d give any advice which is out of my reach. Help!

Hi @Hparker21 difficult to say how property vs stock market will go over the next ten years, but it sounds like you love the flat and property feels like a solid investment atm to me. That said the government seems to be cracking down more and more on second home ownership, so the current tax system might change.

Have you considered putting the flat into a limited company or trust? There are pros (you’ll pay corporation tax rather than paye/ni and not have various mortgage restrictions I believe) and cons, but this might be another avenue to consider. I’m not sure I’m allowed to link on here but if you google it you’ll find some good sites with advice on this. I’m not an accountant though so definitely recommend getting tax advice on this (or a cheaper IFA!).

I was advised not to put my house into a ltd company as it'd cost too much to transfer it for not a huge amount of gain.

If your flat has an EPC rating of C or above then you could make the most of renting it longer term and keeping the asset. It would also serve you well if maintained your financial status IMO.

Capital gains is reduced if you've lived in the flat as you'll receive lettings relief depending on the ratio of homeowner occupancy vs tenanted.

A lot of people are selling up but personally I'm keeping ours as I still think it's worthwhile financially.