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Strebor123
Posts: 100 Forumite
Hi,
I'm having a bit of trouble getting my head around the new stamp duty rules and wondered if anyone could clarify.
I want to buy a home as my main residence and will be selling my current house. I'd like to buy somewhere with my Dad but not sure it's going to be feasible.
My Dad already owns other property. If I wanted to buy a house for £140K and he wanted a 10% share (£14K) would we need to pay the higher rate of stamp duty?
In a different scenario - If I bought the house on my own and then, later on, sold 10% of the house to my Dad - what stamp duty (if any) would need to be paid?
Thanks in advance.
I'm having a bit of trouble getting my head around the new stamp duty rules and wondered if anyone could clarify.
I want to buy a home as my main residence and will be selling my current house. I'd like to buy somewhere with my Dad but not sure it's going to be feasible.
My Dad already owns other property. If I wanted to buy a house for £140K and he wanted a 10% share (£14K) would we need to pay the higher rate of stamp duty?
In a different scenario - If I bought the house on my own and then, later on, sold 10% of the house to my Dad - what stamp duty (if any) would need to be paid?
Thanks in advance.
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Comments
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Why would getting a joint mortgage prove difficult?0
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For 10% share, is it really worth the hassle?Make £2024 in 2024
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Also, page 8. If the chargeable consideration is £40K or less it seems that the higher rate is not payable. If my Dad has a 10% share which equates to £14K does this mean we don't pay the higher rate, or is the chargeable consideration the whole value of the property? And would this apply if he bought a 10% share off me later down the line?0
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Strebor123 wrote: »Why would getting a joint mortgage prove difficult?
Age/term
Not living in this property presumably.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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kingstreet wrote: »Ownership of other property/affordability
Age/term
Not living in this property presumably.
Affordability isn't an issues. I earn enough to buy a house of this value on my own and my Dad does too. His age poses a minor issue that we can only have a 19 year term if he buys with me, but that's fine. What issue would him not living in the property pose?0 -
Strebor123 wrote: »If my Dad has a 10% share which equates to £14K does this mean we don't pay the higher rate, or is the chargeable consideration the whole value of the property?
The former. See 3.4.2.
Re. the mortgage - will your dad still be working by the end of the mortgage term? Is he going to be living with you?0 -
The former. See 3.4.2.
Re. the mortgage - will your dad still be working by the end of the mortgage term? Is he going to be living with you?
Thanks. So it seems like that option is out as the stamp duty would be too much for it to be worth doing.
Would these same criteria still apply if he buys a 10% stake off me later down the line?
My Dad is planning on retiring at 67. He is currently 56. Nationwide have a maximum age of 75 and my Dad has a few properties that provide rental income and his pension would also probably pass affordability criteria for when he retires.0 -
Is someone having a laugh?
I've never seen so many plans to try to circumnavigate a bit of tax on one board...0
This discussion has been closed.
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