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-   -   Apartment exchange vs sell & buy (https://www.englishforum.ch/housing-general/300773-apartment-exchange-vs-sell-buy.html)

wilsong25 19.10.2020 19:48

Apartment exchange vs sell & buy
 
Hi,

I did not find this case before in the threads, so here goes EF. The situation is that my neighbor in my holiday block of apartments (PPE) in Valais is getting older and she has a large apartment, I have a smaller renovated place and need more space.

So my neighbor has proposed an apartment swap (plus a cash payment from me to her in order to get a bigger place), which seems to keep everyone happy. She has a mortgage on her place that would not be completely paid off with the cash that I would propose for the difference, my place is mortgage free.

So my question is - is this something that is just so out of the ordinary here in CH so that the bank would not touch it? I am guessing no savings on notary fees of ~6% by doing it this way. Do you think that the bank of my neighbor would tell her to get lost as they don't want to keep a mortgage of only 40k? Would it be easier to put my place up for sale and buy hers?

Thanks for comments! I am here on a C permit, she is UK resident.

fatmanfilms 19.10.2020 19:51

Re: Apartment exchange vs sell & buy
 
Quote:

Originally Posted by wilsong25 (Post 3228674)
Hi,

I did not find this case before in the threads, so here goes EF. The situation is that my neighbor in my holiday block of apartments (PPE) in Valais is getting older and she has a large apartment, I have a smaller renovated place and need more space.

So my neighbor has proposed an apartment swap (plus a cash payment from me to her in order to get a bigger place), which seems to keep everyone happy. She has a mortgage on her place that would not be completely paid off with the cash that I would propose for the difference, my place is mortgage free.

So my question is - is this something that is just so out of the ordinary here in CH so that the bank would not touch it? I am guessing no savings on notary fees of ~6% by doing it this way. Do you think that the bank of my neighbor would tell her to get lost as they don't want to keep a mortgage of only 40k? Would it be easier to put my place up for sale and buy hers?

Thanks for comments! I am here on a C permit, she is UK resident.

Agent fees are very high, I suspect notary costs & taxes will be lower, I would take the suggestion seriously.

AbFab 19.10.2020 19:54

Re: Apartment exchange vs sell & buy
 
Both parties will doubtless be liable to capital gains on any profit. I don-t think this can be avoided...

fatmanfilms 19.10.2020 19:57

Re: Apartment exchange vs sell & buy
 
Quote:

Originally Posted by AbFab (Post 3228676)
Both parties will doubtless be liable to capital gains on any profit. I don-t think this can be avoided...

The UK resident won'e be bothered by Swiss CGT as his UK gains in GBP will be taxed at 28% (18% if still a lower rate tax payer including the gain or a slice of it).
Even with zero CHF profit the UK gains could be 100%. Any Swiss tax can be credited against UK liability. The Swiss resident can roll it over.


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