Will new stamp duty changes affect me?

alx3365

I want to remortgage my home into a buy-to-let mortgage after April and move into rented accommodation. Could stamp duty changes affect me?

I currently live in a three bedroom house that I have a normal residential mortgage on. It has been my only residence since 2010.

However, due to changes in circumstances, I will be living on my own and no longer be needing the extra space within a couple of months.

One option I had in mind was to remortgage into a buy-to-let mortgage and move myself into a second residence which would be a much smaller one-bedroom rented apartment.

If I could get a half decent rate, I should be end up having enough money left over from rental income each month to subsidise my new rent in the one-bedroom apartment I move into (even after factoring in changes to how buy-to-let mortgages will be taxed).

My question is whether if I take this step after April, is there any way the stamp duty increase on purchases of a second residence might affect me?

Of course, there will be no new property purchase in my scenario. But would changing my current primary residence into a secondary residence post-April mean I have to make up the additional stamp duty charges buy-to-let’s will incur compared to the much lower rates I initially paid when I bought the property?

Basically, how are properties that were purchased before April 2016, but become second residences after that date, taxed for the purpose of stamp duty?

Any responses are much appreciated!

Thanks

ACG

Its on the purchase of a second property. You are remortgaging and not buying anything else so there should be no extra stamp duty due.

amnblog

You set yourself up for the extra 3% if you later buy a new home without selling this current one that you intend to rent.


If you are not buying, you are not paying.