Buying in NC, selling property in UK - Tax & Exchange Rate
Hi everybody,
My wife (American) and I moved to Charlotte, NC, in mid-2017 and we've been renting since August. We've now received an offer on our house in Brighton, UK, and made an offer on a house in Indian Land, SC. I'm hoping the financial experts on this forum can provide some tips on how to navigate this entire process. Our situation:
We've bought/sold a couple properties already in the UK and know about the usual solicitors' fees, potential small house renovation costs from survey, costs of cleaning/moving out belongings from house, etc. We're also going to have some moving costs in Charlotte, NC, potential for most closing costs to be paid if we use a preferred lender, etc. The big unknowns are the tax burden :unsure: , what exchange rate we're likely to get (which obvs. depends on the day that we convert the money but how do you ensure you get the best exchange rate?), and the APR & type of mortgage we get. Also, anything else I might have completely overlooked? Thanks so much for all your help; so many factors to take into consideration!! Any and all tips and advice appreciated! |
Re: Buying in NC, selling property in UK - Tax & Exchange Rate
What was the exchange rate on the day you bought your house in the UK/ took out the mortgage? You will need that to calculate the exchange gain on the repayment of your mortgage.
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Re: Buying in NC, selling property in UK - Tax & Exchange Rate
Originally Posted by Pulaski
(Post 12457546)
What was the exchange rate on the day you bought your house in the UK/ took out the mortgage? You will need that to calculate the exchange gain on the repayment of your mortgage.
My wife tells me we actually completed on the Brighton property in Feb 2015, haha. So the UK/USA exchange rate on the day was 1.5403. |
Re: Buying in NC, selling property in UK - Tax & Exchange Rate
Originally Posted by MaxUK
(Post 12457548)
Is that the original mortgage (i.e. when we bought a property before this in London) or when we ported the mortgage & added to it for the Brighton property?
My wife tells me we actually completed on the Brighton property in Feb 2015, haha. So the UK/USA exchange rate on the day was 1.5403. I think it would only be the rate related to the loan secured on the property you currently own and are selling. |
Re: Buying in NC, selling property in UK - Tax & Exchange Rate
Originally Posted by Pulaski
(Post 12457550)
Were you allowed to move a mortgage loan to a different property but keep the sale interest rate and term?
I think it would only be the rate related to the property you currently own and are selling. |
Re: Buying in NC, selling property in UK - Tax & Exchange Rate
Originally Posted by MaxUK
(Post 12457551)
Yes. We just added a second mortgage product on top.
Each calculation will be the dollar value of the payoff amount using the exchange rate at the time the loan was originally taken out, and then deducted from that the dollar value of the payoff amount on the date of the payoff. You will be liable for CGT on the difference. |
Re: Buying in NC, selling property in UK - Tax & Exchange Rate
Indian Land has definitely had a property value boom.
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