I have a number of queries.
I bought an apartment in 2005 and lived there until 2013. In that year my husband and I bought a house together and moved. I kept the apartment and rented it out, however I did not declare the change of purpose (from residential to rental) to the mortgage lender. I was on a tracker rate so my mortgage interest was very low. I am a PAYE worker and I did declare my rental income on the Form 12.
In 2017 my husband and I separated and I returned to live with our child in the apartment. My husband stayed living in the house. We did not separate formally. However we have worked things out, and I am now considering moving back to the house with the child.
I have a few questions.
(A) If I keep the apartment and rent it out, am I obliged to inform my mortgage lender? If I don't, what are the potential consequences? Do the banks check in general? (I have always kept up payments etc)
(B) If I sell the apartment, I understand I will be liable for CG tax on the years I rented it out - is this correct? However, I can claim that this was my residence for the past three years, which is true and verifiable. If I sell the apartment is there a way the bank will find out I have paid interest on the mortgage as a primary residence and reclaim this in some way?
Thanks
I bought an apartment in 2005 and lived there until 2013. In that year my husband and I bought a house together and moved. I kept the apartment and rented it out, however I did not declare the change of purpose (from residential to rental) to the mortgage lender. I was on a tracker rate so my mortgage interest was very low. I am a PAYE worker and I did declare my rental income on the Form 12.
In 2017 my husband and I separated and I returned to live with our child in the apartment. My husband stayed living in the house. We did not separate formally. However we have worked things out, and I am now considering moving back to the house with the child.
I have a few questions.
(A) If I keep the apartment and rent it out, am I obliged to inform my mortgage lender? If I don't, what are the potential consequences? Do the banks check in general? (I have always kept up payments etc)
(B) If I sell the apartment, I understand I will be liable for CG tax on the years I rented it out - is this correct? However, I can claim that this was my residence for the past three years, which is true and verifiable. If I sell the apartment is there a way the bank will find out I have paid interest on the mortgage as a primary residence and reclaim this in some way?
Thanks