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UK Mortgage Questions

UK Mortgage Questions

Old Nov 21st 2019, 9:40 pm
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Default UK Mortgage Questions

My fiancee is in the process of applying for my K1 Visa so its a while off yet but thinking about my situation with my house in the UK.

I bought a house with my mum who paid the deposit and the mortgage and deeds are in my name. I have one year left of my five year fixed mortgage so will be up for renewal around the time my visa application could be possibly completed. Ideally I wanted to keep the house and pay the mortgage so my mum can still live there. What are the implications of this in terms of taxes and things in the states? Isit easy to pay from a US account or have to transfer money to a UK account to pay it. Its currently a 35 year mortgage and monthly payments are £265 a month. So she would take over all the other bills and probably get a lodger as its a 3 bed townhouse. The other option is to sell the house give my mum her deposit back with some extra so she can buy her own place or rent and I use the leftover money to start my new life in Orlando. I just know my mum would rather not have to move again and is unable to get a mortgage as she is 65 and works 8 hours a week as semi - retired so would have to buy something outright with her money or rent.

Any advice welcome. I meant to post this in main forum. How do I move or delete and repost

Last edited by nikkif99uk; Nov 21st 2019 at 9:57 pm.
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Old Nov 22nd 2019, 1:46 am
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I moved it for you!

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Old Nov 22nd 2019, 9:04 am
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Default Re: UK Mortgage Questions

Originally Posted by Noorah101 View Post
I moved it for you!

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Thanks as soon as I hit post I realised was in wrong bit and couldn’t see a way to delete
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Old Nov 22nd 2019, 9:52 am
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Default Re: UK Mortgage Questions

Originally Posted by nikkif99uk View Post
Thanks as soon as I hit post I realised was in wrong bit and couldn’t see a way to delete
Only mods can delete - for future ref, if you hit the report button the post in question (the exclamation mark on the bottom left), you can send a message to mods asking them to move it for you.

HTH.
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Old Nov 22nd 2019, 11:22 am
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Default Re: UK Mortgage Questions

If you imagine selling it in the future, it's probably best to go ahead and go it now. The currency conversion and capital gains can create a nightmare for US taxes.

If you intend to keep it for many years, I suppose you still could, just be aware that it will be a headache when it's liquidated. I can't help with the UK bank account I'm afraid, but it will probably be easier just to transfer the money to your Mum and have it come out of her account.
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Old Nov 22nd 2019, 1:00 pm
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Default Re: UK Mortgage Questions

Originally Posted by civilservant View Post
If you imagine selling it in the future, it's probably best to go ahead and go it now. The currency conversion and capital gains can create a nightmare for US taxes.

If you intend to keep it for many years, I suppose you still could, just be aware that it will be a headache when it's liquidated. I can't help with the UK bank account I'm afraid, but it will probably be easier just to transfer the money to your Mum and have it come out of her account.
Given that the house is lived in by the OP's mother then selling right now is probably not an option.

I don't think there will be any tax implications in the USA until the house is sold. Transfering money to pay the mortgage should be straightforward using Transferwise or similar, and probably easiest to transfer to a UK bank account first. I would recommend that the OP hang onto his UK bank account. We kept our UK bank account for the 29 years we lived in the USA and it was very useful to have one.

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Old Nov 22nd 2019, 1:04 pm
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Default Re: UK Mortgage Questions

Given that the house is lived in by the OP's mother then selling right now is probably not an option.
OP clearly stated in their post that, while not preferred, it was an option.


I don't think there will be any tax implications in the USA until the house is sold.
Right. Which is what I said. To my mind, better to realize the funds before moving, therefore not having the headache of liquidating and therefore paying taxes on, realized capital gains, along with the issues of the difference in exchange rates between purchase date and sale date.

It could end up very expensive for the OP in the future, or perhaps not. Currency speculation is not my bag.
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Old Nov 22nd 2019, 1:55 pm
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Default Re: UK Mortgage Questions

Originally Posted by civilservant View Post
OP clearly stated in their post that, while not preferred, it was an option.
Oops, missed that.

Originally Posted by civilservant View Post
Right. Which is what I said. To my mind, better to realize the funds before moving, therefore not having the headache of liquidating and therefore paying taxes on, realized capital gains, along with the issues of the difference in exchange rates between purchase date and sale date.

It could end up very expensive for the OP in the future, or perhaps not. Currency speculation is not my bag.
I agree that it would be a lot simpler to sell before leaving.

The currency movement is a huge unknown, so OP might look up the value of the house on the date of purchase and look up the exchange rate on the day using XE.com which will give the basis in $'s. e.g. if the house was bought a few years ago for £100,000 and the exchange rate was 1.6 then that would be $160,000, and if the house was then sold for £120,000 and the exchange rate was 1.25 then the proceeds would be $150,000 so a UK capital gain of £20,000 but a US loss of $10,000.


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Old Nov 22nd 2019, 3:40 pm
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Default Re: UK Mortgage Questions

Originally Posted by durham_lad View Post
Given that the house is lived in by the OP's mother then selling right now is probably not an option.

I don't think there will be any tax implications in the USA until the house is sold. Transfering money to pay the mortgage should be straightforward using Transferwise or similar, and probably easiest to transfer to a UK bank account first. I would recommend that the OP hang onto his UK bank account. We kept our UK bank account for the 29 years we lived in the USA and it was very useful to have one.
will need to keep my UK account as I have a personal loan I have to pay for as well.
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