Selling farm cottages

[Green oak]

Thinking about selling to finance. New grain store. 2000t. The cottage needs around 50k spent on it. And none of the family are ever going to live in it. Capital gains is 28% so would be paying around 150k. Is this a good idea?

 

[Nearly]

Is cottage anywhere near the farmyard or your farmland?
If so it's not a good idea to sell it.
Neighbours will make your life hell.

There are people on here who would rather flatten it than invite neighbours closer.

Holiday cottage?

 

[AJ123]

Decide first for yourself if it’s good idea then consider the tax consequences and any mitigation if available/appropriate.

I wouldn’t know as not a tax advisor, but if they are farm assets, could you get some sort of relief if reinvesting back into the farm even if only on the plant/ equipment aspect? No doubt depends how they are held currently.

That would strike me as far more socially justifiable than the current system of being able to rollover massive gains from obtaining development consent back into buying more land.

 

[teslacoils]

Is this a good idea?

No.

 

[Tractorstant]

Thinking about selling to finance. New grain store. 2000t. The cottage needs around 50k spent on it. And none of the family are ever going to live in it. Capital gains is 28% so would be paying around 150k. Is this a good idea?

Where in Essex are you...roughly?

 

[Green oak]

Is cottage anywhere near the farmyard or your farmland?
If so it's not a good idea to sell it.
Neighbours will make your life hell.

There are people on here who would rather flatten it than invite neighbours closer.

Holiday cottage?

We have two blocks of land. this Cottage is on The main block of land 500 Acres but I live 3 miles from it. On the family farm. The cottage is slightly away from the farmyard.

 

[jendan]

Thinking about selling to finance. New grain store. 2000t. The cottage needs around 50k spent on it. And none of the family are ever going to live in it. Capital gains is 28% so would be paying around 150k. Is this a good idea?

Its a difficult one.I have something similar,and is going to cost north of £100,000 to do up properly.Currently uninhabitable but would be worth a few bob when fixed. Council Tax on mine is now 300% x Band A,so £4000/year.

 

[B R C]

What’s the rental value, do it up rent it out borrow the money for grain store, money is cheap cheap cheap.
Does grain store not stack up on its own by borrowing, and also freeing up valuable space elsewhere?

 

[haybob]

Hang on to your assets and let out the cottage. I've seen people sell off stuff like that and they are basically going backwards. If you're earning money from corn, then it should be justifiable to borrow to build a grain store.

 

[Green oak]

What’s the rental value, do it up rent it out borrow the money for grain store, money is cheap cheap cheap.
Does grain store not stack up on its own by borrowing, and also freeing up valuable space elsewhere?

Rental would be 2000k month. Done up. Their a pair.

 

[Swarfmonkey]

Do them up, rent them out. If the tenants are @rseholes you can get rid of them (eventually!).

Sell them and you've lost all control over who moves into them.

 

[Tubbylew]

Its a difficult one.I have something similar,and is going to cost north of £100,000 to do up properly.Currently uninhabitable but would be worth a few bob when fixed. Council Tax on mine is now 300% x Band A,so £4000/year.

Can you not move into it somehow whilst its being done up and claim single person discount?

 

[Tarw Coch]

Its a difficult one.I have something similar,and is going to cost north of £100,000 to do up properly.Currently uninhabitable but would be worth a few bob when fixed. Council Tax on mine is now 300% x Band A,so £4000/year.

I believe if it’s uninhabitable you don’t have to pay council tax.
I believe it is classed as uninhabitable if it doesn’t have a working toilet.
I have heard of toilets being removed and windows boarded up to get around paying council tax on empty property

 

[Tubbylew]

I believe if it’s uninhabitable you don’t have to pay council tax.
I believe it is classed as uninhabitable if it doesn’t have a working toilet.
I have heard of toilets being removed and windows boarded up to get around paying council tax on empty property

Not certain that applies in herefordshire, it doubles after 2yrs, and keeps on climbing every year until it's occupied.

Edit :- https://www.herefordshire.gov.uk/council-tax-1/council-tax-discounts-exemptions/16

 

[Swarfmonkey]

I believe if it’s uninhabitable you don’t have to pay council tax.
I believe it is classed as uninhabitable if it doesn’t have a working toilet.
I have heard of toilets being removed and windows boarded up to get around paying council tax on empty property

Different local authorities offer different council tax discounts. Some don't offer any at all. Mate of mine up in Berkshire bought a place last year that's in a right state. Half the roof has fallen in, no functioning toilets, needs totally rewiring (and a long list of other things). It's uninhabitable. His council tax reduction on it? 0%. If he'd been living 10 miles down the road one way he'd have got 25% off.

 

[B R C]

£2k a month, say net £20k year
Borrow £200k 2.5% £1600 month paid back in 12 years and don’t forget the interest is tax deductible and possibly the repairs to houses.
There is only one answer, don’t sell

 

[B R C]

You pay more council tax if it empty doesn’t matter if uninhabitable. Borrow the money if you have decent security and a plan the banks will throw the money at you at decent rates.

 

[livestock 1]

Its a difficult one.I have something similar,and is going to cost north of £100,000 to do up properly.Currently uninhabitable but would be worth a few bob when fixed. Council Tax on mine is now 300% x Band A,so £4000/year.

I’ve got something similar too

 

[robs1]

As has as been said if the grain store cant stand on it's own feet then why built it, the house will give you a far better return, do it up and then go live in it for the required time to avoid the tax if you really dont want to keep it.

 

[cattleman123]

Borrow the money do it up the rent will cover the interest,seems a shame to pay the taxman anything, and you still have an asset which hopefully will gain value over time.