Hi all
I am in the fortunate / unfortunate position that after years of accumulating BTL's, I am now having to sell one of them (I have never sold one of mine since 2002) and would appreciate any input from forum members.
My Foray into the world of BTL had nothing to do with investing or income, rather it started as a place to store my hard earned income, then it became a means to help family, friends and acquaintances (whether be it to house one or to assist one in realising equity), then a vehicle to leverage monies, to a self sustaining wealth building vehicle with an income stream - thus an asset in the truest sense.
My tenant who has been in the property for over a decade has always wanted to buy it from day they moved in. I recently fired the management company and the tenants approached me again. I have provisionally agreed to sell it at arms length and market value.
The issue is that amidst the pandemic I remortgaged and carried out some ancillary development work to the property (I was planning on moving in at some point (downsizing) - that point after 20 years is still not here and I doubt will ever come (hence selling), fixed the rate for 5 years which means that if I do not transfer the mortgage then I will be hit with a hefty penalty.
Now my question is, can I deduct the mortgage penalty when calculating CGT (The CGT is huge already).
Your comments and suggestions will be much appreciated.