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Do you pay stamp duty on buy to let?
Comments
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I am looking at buying a property (to let) jointly (50:50) with my daughter. It would be over the £125k threshold.SDLT is payable on residential property. FTB have some exemptions, but this does not seem to apply to you. So you pay SDLT at the current rate (see here)
Over £125,000 to £250,000 = 1%
For her, it would be a first house purchase. Would we pay SDLT on half the value?0 -
No. You'd pay all of it. A joint purchase with a previous owner effectively takes away the FTB relief.I am looking at buying a property (to let) jointly (50:50) with my daughter. It would be over the £125k threshold.
For her, it would be a first house purchase. Would we pay SDLT on half the value?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 -
I am looking at buying a property (to let) jointly (50:50) with my daughter. It would be over the £125k threshold.
For her, it would be a first house purchase. Would we pay SDLT on half the value?
Read the HMRC notes.
Exemptions notes
Quote;
"First-time buyers of residential property can apply for SDLT relief if all of the following apply:
the effective date is on or after 25 March 2010 and before 25 March 2012
the consideration given is £250,000 or less
the buyer intends to live in the property and it will be their only or main home
they have not previously owned property or land either in the UK or anywhere else in the world - including property bought with anyone else"
You haven't explicitly stated as such, but on the assumption you have already owned or part-owned a property, you AND your daughter will not qualify for SD relief. She'll qualify on her own, but not jointly with you. You also don't seem to qualify because it won't be your main home.0 -
Read the HMRC notes.
Exemptions notes
Quote;
"First-time buyers of residential property can apply for SDLT relief if all of the following apply:
the effective date is on or after 25 March 2010 and before 25 March 2012
the consideration given is £250,000 or less
the buyer intends to live in the property and it will be their only or main home
they have not previously owned property or land either in the UK or anywhere else in the world - including property bought with anyone else"
You haven't explicitly stated as such, but on the assumption you have already owned or part-owned a property, you AND your daughter will not qualify for SD relief. She'll qualify on her own, but not jointly with you. You also don't seem to qualify because it won't be your main home.
buy to let isn't main home.0 -
poppysarah wrote: »buy to let isn't main home.
Yes, that's what I said in the post you quoted;
"....also don't seem to qualify because it won't be your main home."0 -
If this property is part of your retirement fund in ten years then do consider the possibility of further significant falls in value (not necessarily, but it has to be a possibility)
As buying a house for cash suggests a significant sum of moey have you taken advice on what is the best option for you?
Property isnt a risk free investment, do be careful before spending your retirement fund. Can you afford say a 30% drop in real value or the costs of dealing with a bad tennant?0 -
Yes, that's the bit that disqualifies her.poppysarah wrote: »buy to let isn't main home.
But, in the next section, there is also "one of the buyers is a first-time buyer but someone buying the property with them has owned residential property before" that lets her out too.
Never mind, thanks to all for the enlightenment!0
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