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  • FIRST POST
    • Elliott.T123
    • By Elliott.T123 19th Jun 17, 4:51 PM
    • 3Posts
    • 2Thanks
    Elliott.T123
    Stamp Duty Query
    • #1
    • 19th Jun 17, 4:51 PM
    Stamp Duty Query 19th Jun 17 at 4:51 PM
    Hi, apologies if this has been answered, I did try searching both on this board and on the wider internet with no luck.


    There seems to be no end of advice for married couples but very little for non-married couples.


    The current situation is that both my partner and I own our own homes although we live together in mine and rent hers out.


    We are looking to upgrade the "primary residence" and sell mine and buy a new joint home while keeping hers.


    I am left very confused over if we would need to pay the extra 3% on our new home as for her it would be a second house.


    Any help/advice would be much appreciated.


    Thanks
Page 1
    • kingstreet
    • By kingstreet 19th Jun 17, 4:54 PM
    • 31,948 Posts
    • 17,075 Thanks
    kingstreet
    • #2
    • 19th Jun 17, 4:54 PM
    • #2
    • 19th Jun 17, 4:54 PM
    On completion of the new purchase, her property ownership will increase from one to two, so IMHO the surcharge will apply.

    If you were married, the unit would go from owning two to owning two, so it wouldn't.
    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.
    • marliepanda
    • By marliepanda 19th Jun 17, 4:54 PM
    • 4,679 Posts
    • 9,386 Thanks
    marliepanda
    • #3
    • 19th Jun 17, 4:54 PM
    • #3
    • 19th Jun 17, 4:54 PM
    Second rate would apply, she isn't selling her main residence as it's not hers.

    If you were married it would not apply.
    Survey Earnings 2017 - £163
    • Pixie5740
    • By Pixie5740 19th Jun 17, 5:13 PM
    • 10,852 Posts
    • 14,994 Thanks
    Pixie5740
    • #4
    • 19th Jun 17, 5:13 PM
    • #4
    • 19th Jun 17, 5:13 PM
    I find it odd that your extensive search didn't unearth HMRC's guidance note (or any of the many similar SDLT threads on this board) where your exact scenario is covered in Chapter 9.

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • 00ec25
    • By 00ec25 19th Jun 17, 5:14 PM
    • 4,800 Posts
    • 4,173 Thanks
    00ec25
    • #5
    • 19th Jun 17, 5:14 PM
    • #5
    • 19th Jun 17, 5:14 PM
    Lol, Pixie beat me too it

    read the guide - particularly page 15 para 3.42 onwards: Joint Purchasers....

    3.42 Where a transaction is entered into by joint purchasers the higher rates will apply if the transaction would be a higher rates transaction for any of the purchasers considered individually
    • Elliott.T123
    • By Elliott.T123 19th Jun 17, 5:33 PM
    • 3 Posts
    • 2 Thanks
    Elliott.T123
    • #6
    • 19th Jun 17, 5:33 PM
    • #6
    • 19th Jun 17, 5:33 PM
    Having read that guide and other literature online would this idea be a feasible work around?


    I put my partner onto my house ownership but in a proportion that would be under the £40k threshold for paying stamp duty asap. We then continue to live there for a while as our primary residence.


    When we then move and buy a new property she will also be selling her main residence.
    Again I may have missed something, or I may have missed somewhere that you need to own a certain % for the house to be a main residence but from what I understand that seems to be a solution.


    Thanks
    • 00ec25
    • By 00ec25 19th Jun 17, 5:53 PM
    • 4,800 Posts
    • 4,173 Thanks
    00ec25
    • #7
    • 19th Jun 17, 5:53 PM
    • #7
    • 19th Jun 17, 5:53 PM
    Having read that guide and other literature online would this idea be a feasible work around?


    I put my partner onto my house ownership but in a proportion that would be under the £40k threshold for paying stamp duty asap. We then continue to live there for a while as our primary residence.


    When we then move and buy a new property she will also be selling her main residence.
    Again I may have missed something, or I may have missed somewhere that you need to own a certain % for the house to be a main residence but from what I understand that seems to be a solution.


    Thanks
    Originally posted by Elliott.T123
    depends how much the outstanding mortgage on your property is

    is she already party to that mortgage?

    if not, it would require the lender's acceptance
    • SuboJvR
    • By SuboJvR 19th Jun 17, 8:14 PM
    • 355 Posts
    • 247 Thanks
    SuboJvR
    • #8
    • 19th Jun 17, 8:14 PM
    • #8
    • 19th Jun 17, 8:14 PM
    Or you could just marry her ;-)
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