What a long and drawn and process this has been. I had no idea that it would take quite so long from completing the refurbishment on the house through to exchange and completion.
The main problem appears to be that after you have accepted a quote, buyers (often through no fault of their own) are taking ages getting everything in order and there seems to be little you can do to speed the process up. In the case of our buyer their mortgage offer (which had been agreed in principle before we accepted) took weeks to come through. In the meantime the buyers had two surveys done, one of which took a long time to carry out and even longer to report on.
In retrospect the whole thing when through smoothly, just very slowly. This leaves plenty of time for worry and fret as you know that if a buyer pulls out you will have to wait another two or three months from getting another offer to getting to exchange again. All in all the house was not actually available for anybody else to buy for much of the last 6 months, it has just been under offer waiting for paperwork and due process.
Initial calculations look like we will end up making just under 13% return on capital in just under 12 months but this reduces to 8% if I take a very prudent account of financing costs. I will need to do some work to find out how much of the finance costs (bearing in mind I borrowed against my main home) I will be able to claim against the cost of the refurbishment for CGT purposes. I can see an accountant getting a slice of the profits!
Never mind, if I have to pay CGT it won't be until January 2011.
