Selling the Omaze House After Winning: What You Need to Know
Winning a house through an Omaze draw can bring up a number of practical questions, particularly about what happens next and whether selling the property is a realistic option.
This O’Reels blog post outlines the steps that follow a win, including how ownership is transferred, the possibilities and timing of selling the house, and the key tax considerations to keep in mind, such as Capital Gains Tax (CGT).
Read on to find out more.
What Happens When You Win an Omaze House?
Once a winner is announced, Omaze contacts them using the details provided at entry. From there, they begin the legal process to transfer the property.
The handover usually includes identity verification, conveyancing, and signing necessary documents to register the title in the winner’s name. Stamp duty and typical legal costs connected to receiving the prize are generally covered by Omaze, so the winner normally does not pay these during the transfer.
After the legal procedures are complete, the winner becomes the homeowner and assumes the ongoing expenses associated with ownership. These can include utilities, council tax, insurance, routine maintenance, and any service charges if the property is leasehold.
Once ownership is confirmed, the next consideration is how to use the property, which often leads to questions about selling.
Can You Sell the Omaze House If You Win?
In most cases, after the property has been transferred, the winner holds full legal ownership and can choose to sell if they wish. Omaze usually places no ongoing restrictions that would prevent a sale after completion.
As with any property sale, it is important to consider the usual factors. Estate agent fees, conveyancing costs, and any work needed to prepare the home for sale will all affect the final amount received. If there are covenants on the property or leasehold conditions, these should be reviewed carefully to avoid unexpected issues.
If selling is the preferred option, the timing of the sale will often be the next aspect to consider.
How Soon Can You Sell the Omaze House?
A winner can generally list the property once the transfer is complete and they are the registered owner. There is normally no waiting period imposed by Omaze.
How quickly the sale progresses depends on the local housing market and the usual steps involved in marketing a property and securing a buyer. Having documents ready, such as title deeds and property information forms, can assist your conveyancer in processing the sale efficiently once an offer is accepted if you win the Omaze house and want to sell it. Professional advice may be useful to understand any particular requirements for your situation.
If a sale is planned, it is also important to consider potential tax implications.
What Are the Tax Implications of Selling an Omaze House in the UK?
There is typically no tax charged at the point of winning a house in a prize draw, and prize winnings are generally not regarded as income for tax purposes in the UK.
Taxation may apply when the property is sold. Capital Gains Tax, or CGT, could be payable on any profit if the property’s value has increased between the date you received it and the date you sell it. The starting value for CGT is usually the market value at the time the house was awarded. Costs related to selling, such as estate agent and legal fees, can normally be deducted when calculating any gain. If the property has been rented out, income tax rules will apply to rental income earned during ownership.
Stamp duty on the initial transfer is typically covered by Omaze. Sellers do not pay stamp duty on disposals; this tax is payable by buyers when purchasing a property.
These points often lead to questions about whether CGT will be due.
Do You Need to Pay Capital Gains Tax on the Sale?
If you win the Omaze house, CGT may be payable if the property is sold for more than its value when you received it, and if it has not been your main residence throughout ownership. If the house has been your only or main home, principal private residence relief may reduce or eliminate the gain. Where the property has been your main residence for only part of the ownership period, the relief is usually apportioned accordingly.
When calculating a gain, the sale price is compared with the market value at the time of the win and adjusted for allowable costs. These may include legal and estate agent fees, as well as the cost of qualifying improvements, but not routine repairs. An annual tax-free allowance may reduce the taxable gain, and the rate of tax depends on your overall income and the fact it is a residential property.
Since each individual’s situation differs, seeking advice from a tax specialist or solicitor can help ensure you meet your obligations accurately.
Should You Sell the Omaze House After Winning?
If you win the Omaze house, deciding whether to sell depends on personal circumstances. Some winners choose to move in and make the property their main home. Others prefer to sell and use the proceeds for other purposes. Alternatively, some keep the property for a period before reviewing their options.
It is helpful to consider practical factors alongside financial ones. Running costs such as council tax, insurance, utilities, and maintenance may be significant. Location, travel times, local schools, and access to work or family also influence whether the property suits your everyday needs. If the property is leasehold, ground rent, service charges, and any rules set by the freeholder should be factored in. Market conditions also matter; sale prices, demand in the area, and the likely duration of the sale process can all impact your plans.
Legal and tax aspects are also important. Using the property as your main residence affects potential CGT in the future, while renting it out comes with landlord responsibilities that may or may not suit your circumstances. A discussion with a solicitor or financial adviser can provide helpful clarity before making a decision.
Ultimately, the right choice is the one that fits your situation and objectives. If you decide to sell, understanding the process, timing, and tax considerations will help you approach the sale with greater assurance.
**The information provided in this blog is intended for educational purposes and should not be construed as betting advice or a guarantee of success. Always gamble responsibly.