Selling a house in negative equity. Implications

[dublin100]

Hello all,
We will hopefully sell our rented out house in a few weeks. It will sell for less than the mortgage and I will continue paying the difference myself to the mortgage provider.

However, we have an apartment, which my wife bought and now is also rented out.

When we come to sell the apartment, can we offset the loss on the house in some way, if the apartment sells for more than will be left on the mortgage?

Thanks for any advice.

 

[Mrs Vimes]

It's not clear what you mean - you can of course use the excess of the apartment selling price to pay down some of your negative equity loan.

If you are asking about your exposure to Capital Gains Tax, the mortgage has no bearing, it's just purchase price less sales price (may also involve indexation and costs). Losses are not generally transferable between spouses however.