3% Stamp Duty rise maybe applied to Main Residence too.

alchemist.1

murphster wrote: »

In that situation right now, I have already arranged my let to buy (before budget) and am looking for a residential property. No idea what to do, even if I find a house today it's unlikely I will complete by 31st March. With things the way they are I feel I cannot make an informed decision.

Unable to make a decision or in denial that it won't make any difference to you? I believe the hike in Stamp duty is targeted for people in exactly your situation.

alchemist.1

Firsttimebuyer2016 wrote: »

Hi - a potentially naive question but hope someone can help. I'm looking to buy my first house in the new year with the help of my mum who will get a joint mortgage with me (as on my salary alone I won't get a big enough mortgage for a property in London)

My mum has a number of properties - will we hit by this rise in stamp duty given I am a first time buyer and this property will be my main residence?

Thanks!

Yes, but i imagine with all those properties the increased 3% will be a drop in the ocean.

kingstreet

Firsttimebuyer2016 wrote: »

Hi - a potentially naive question but hope someone can help. I'm looking to buy my first house in the new year with the help of my mum who will get a joint mortgage with me (as on my salary alone I won't get a big enough mortgage for a property in London)

My mum has a number of properties - will we hit by this rise in stamp duty given I am a first time buyer and this property will be my main residence?

Thanks!

If she is named only on the mortgage, like a guarantor, and not on the ownership of the property the new SDLT regime will not apply.

murphster

alchemist.1 wrote: »

Unable to make a decision or in denial that it won't make any difference to you? I believe the hike in Stamp duty is targeted for people in exactly your situation.

In denial I think, and very hopeful. I bought my first house Dec 2006, it's worth a lot less than I paid but with hard work and lots of savings I can afford a 75% LTB and a deposit for new house (just and I certainly won't be able to afford the extra stamp duty). I wanted to sell it but after a few months, nothing. I need to move for work and this seemed like a good solution.

The government are great at helping first time buyers, what about those people who bought their first homes just before the crash and are trying to move on either for work of family situations. I am one of the lucky ones, so many of my friends are stuck in their small 1st home with growing families and are unable to afford to move, the biggest problem is competition from new build starter homes which are backed by government schemes. Would it be so hard for the government to help us?

alchemist.1

murphster wrote: »

In denial I think, and very hopeful. I bought my first house Dec 2006, it's worth a lot less than I paid but with hard work and lots of savings I can afford a 75% LTB and a deposit for new house (just and I certainly won't be able to afford the extra stamp duty). I wanted to sell it but after a few months, nothing. I need to move for work and this seemed like a good solution.

The government are great at helping first time buyers, what about those people who bought their first homes just before the crash and are trying to move on either for work of family situations. I am one of the lucky ones, so many of my friends are stuck in their small 1st home with growing families and are unable to afford to move, the biggest problem is competition from new build starter homes which are backed by government schemes. Would it be so hard for the government to help us?

I think the best you can hope for is a delay in the additional stamp duty being applied. There are no certainties yet but it would be a huge turnaround if the additional Stamp Duty was abandoned.

murphster

alchemist.1 wrote: »

I think the best you can hope for is a delay in the additional stamp duty being applied. There are no certainties yet but it would be a huge turnaround if the additional Stamp Duty was abandoned.

The more I read the more I think I will have to pay the additional stamp duty, I simply won't be able to afford that. I think I need to stop looking just rent closer to work myself and maybe in a year or so put mine back on the market. The worst thing I could do is find somewhere to buy, commit all the money to surveys, solicitors fees and then not complete on time.

I just think if the government are going to come up with new policies they should sort out the finer details before announcing them to the world.

Southernman

I'm wondering if I will also be hit by this situation.

I have a property on consent to let. If all goes to plan I hope to purchase a property with my partner on a residential basis and will change my consent to let to BTL.

As I have already bought my investment (second home?) property prior to April 2016 and I'll be buying a residential home that will not be by any means profitable I can't work out if I would be stung by the stamp duty situation.

My situation is an odd one

murphster

Southernman wrote: »

I'm wondering if I will also be hit by this situation.

I have a property on consent to let. If all goes to plan I hope to purchase a property with my partner on a residential basis and will change my consent to let to BTL.

As I have already bought my investment (second home?) property prior to April 2016 and I'll be buying a residential home that will not be by any means profitable I can't work out if I would be stung by the stamp duty situation.

My situation is an odd one

I think you're similar to me and it looks like we are going to have to pay the stamp duty (or not in my case, I will be renting myself until such time as I can sell my current home).

Thrugelmir

murphster wrote: »

I just think if the government are going to come up with new policies they should sort out the finer details before announcing them to the world.

Not the way the world works. Always expect the unexpected.

p00hsticks

Southernman wrote: »

My situation is an odd one

I'm not sure it's that odd - there seem to be more and more second time buyers who are deciding to hang on to their original property and let it out rather than sell to move.

My understanding is that in this scenario they'll be expected to pay the additional SDLT as they are effectively buying a second home - the fact that it'll be their PPR is neither here nor there