Buying before selling

[mint]

I am asking this question before I make the decision and, depending on your advice, I might not do it at all.

We saw a beautiful house recently when we were out walking the dog and we decided to view it.  Unfortunately or perhaps fortunately, the house, whilst very beautiful on the outside , has no saving grace at all inside, not one architectural asset left as it has been utterly ruined (vandalised is not too strong a word) by previous owners.

I now think that perhaps I would like to find a similar style of house and buy it if it is affordable.  What I want to know is what happens if, say, I do find such a house and I buy it and our present house takes a while to sell.  When our present house does sell, will we have to pay capital gains tax on it as it will then be one of two houses that we own?

Do you get allowed a time lapse for selling your own property if you have bought another one in the meantime? 

[LEO]

I have made a few assumtions and.

With the example you have given, you are unlikely to be troubled by CGT

[Sue Smith]

We owned and moved into our present house before the sale of our original property was completed and paid no capital gains tax BUT we do not own any property in the U.K. Hope this helps.

Sue.

[Kitty]

The best deals that I have ever done when buying and selling houses are those when I have sold before I have bought.  The pressure and worry during the overlap period if you buy before you sell is horrid.

Last time, I even moved into rented property with 2 dogs and 4 children (and a husband) so that I could sell first.  I steeled myself against looking at anything until we had completed on our sale.

But, then, if you have seen something that you love...

 

 

[mint]

Thanks Leo and Sue.  Makes everything seem much more feasible.

[clarksinfrance]

there is a 1 year holiday from CGT burden in cases like this, I belive it is possible to extend upto 2 years in certain circumstances. Others may know the relevant legislation for this.

[Panda]

Hello Sweet17

With the current market this would seem a risky thing to do.  Houses are hanging around for years on some of the AI forums.   Having said that I did buy before I sold and had a bridging loan.  I spent a month or two worrying about it but it all turned out fine in the end and the two transactions were only two weeks apart, which was pure luck and not judgement.

Wooly's house sould quickly though, maybe he can give you some pointers.  Whilst we're on the subject when's the house warming Wooly?

Panda

[Cendrillon]

Did I read on another post that you are selling a house in Wales? If that sells then you would have some spare dosh to play with.[:)]

[mint]

Thanks for your thoughts, folks.  Cendrillon, the house in Wales sold eventually.  We had already bought the present French one by then.

It was OK in the end, but it did mean that we bought a French house that possibly we would not have bought had the funds been forthcoming from the UK house, if you see what I mean?  We had to buy what we could afford.

I know, I know, we should not have bought until after we sold.  But, poor OH (getting on now) was so.....disappointed and so wanted to come here that I didn't have the heart to make him wait.

Having said all that, our present house, a converted barn, is lovely.  We had to "finish" it off and the project is still ongoing.  But, for various reasons which I will not bore everyone with on here, I would like to move provided we find one of those lovely Charentaise stone houses on a quiet lane or one one of those "green routes".

I just think it would be so nice to be able to get out with the dog and not have to drive her some place where we can walk.  I can also get my bike out and /or put on my running shoes.  Bliss.

Not in any rush and will hang about until we find the right (affordable) property.  However, if I do find one, I don't want to wait around to sell this one.  Would like to "just do it" as the Nike advert had it.

If we play our cards right, the one year we get for selling after buying could be just what's needed.

Will be insufferable if I do find such a property and will no doubt be back on the forum asking for all sorts of advice thereafter.

You have all been warned! 

[mint]

[quote user="Cathy"]

The best deals that I have ever done when buying and selling houses are those when I have sold before I have bought.  The pressure and worry during the overlap period if you buy before you sell is horrid.

Last time, I even moved into rented property with 2 dogs and 4 children (and a husband) so that I could sell first.  I steeled myself against looking at anything until we had completed on our sale.

But, then, if you have seen something that you love...

 

 

[/quote]

Cathy

Sorry, didn't see your post as I posted just one minute after you did!

You are so right.  I am normally such a level-headed, belt-as-well-as-braces person, you wouldn't think I'd do anything rash.

Must be my age or something.  These days, I actually feel quite adventurous and will commit to things before thinking too much.

Inklings of mortality, I guess;  you know, do it before you cop it!

I will get the immobilier in to begin with and see how things stand with the present house.  I do like it here and it would not be the end of the world if we didn't move.  Just feel a bit restless; not bored or unhappy or anything like that, but looking for something biggish to happen.

I also think it's partly to do with the fact that a lot of the renovation work here is not exactly to my taste although it is all pretty-pretty and perfectly serviceable.  Just not ME I guess!

[Cendrillon]

Good luck with your search. I do hope it all works out well for you, let us know how it goes.[:)]

[ali-cat]

[quote user="sweet 17"]

I would like to move provided we find one of those lovely Charentaise stone houses on a quiet lane or one one of those "green routes".

[/quote]

I think you will find your "dream house" whenever you decide the time is right to move.  There are always beautiful stone homes on the market - & the right one will come along at the right time.  If you wait until you have already sold your house it will also put you a much better bargaining position, as well as not having the worry about overlap. 

I know Mr Cat & I are probably over cautious (born worriers, if you really want to know!) but it's the only way I'd go.  Sell first, rent if necessary & then buy - & if you're really stuck we can put you up for a while, as well!! [:-))]

[mint]

Thank you for your good wishes, Cendrillon.

Mrs Cat, I know you are giving me good advice so I will do things in the right order.  Sell first and then look around.

It's not as though I don't like our present house.  On the contrary, I am quite happy here.  Would just like to be more in the countryside and be in a nice old stone house that hasn't been renovated to death.

We always knew we'd probably move quite soon as this was always just to get a toe-hold in France.

Believe me, Mrs Cat, you wouldn't want to put us up!  But thank you for the incredibly generous offer!

[Kitty]

It is expensive to move in France because of the costs of buying and selling (agents, notaire, tax if a second home).  I wish that I had known about that when I bought our French house (my fault, I know, but then I wasn't a member of this Forum).  We thought that we could move here, live here for a while and then move to more of our dream (out in the country).  The reality in France is harder - our costs for moving are buying 14%, selling 8%, tax 16% of the gain, meaning that over a third is taken away. So, if I listened to my hubby, we would wait for 5 years when the tax starts to reduce.  It doesn't stop me looking at estate agents' windows, of course. [:)]

As you said Sweet, life is short and so, go on, follow your dream.  But TRY to sell first!  If you can... [Www]

[mint]

Thankfully, Cathy, we no longer have a UK house and so I don't think we will be liable for CGT.  Also, we bought at a very good price and we added the value to the house by sorting out the utilities for it.  Mind you, it hasn't been cheap, installing the phone line alone cost hundreds as we had to have our own "poteau" or telephone post!  As for the cost of connecting to water, electricity and a fosse that needs a pump to get the waste up to the top of the plot.......we have the bank account still showing the scars!

I'm not really one of these people who must always be looking out for something else to own or be ever dissatisfied.  As I have said before, I am NOT unhappy and would only want to move if we do find something we prefer.

I shall keep a look out but, in the meantime, I do think I will sell first.  All the advice (including yours [:D]) has been to do that.  And, I don't seek advice just to discount it because it's not what I want to hear. 

Will now go and put on my "sensible" hat and put out some feelers both about a sale and a purchase.