Second property SDLT

Alec_85

Hello all,


I was wondering if anyone could shed some light on this for me...


I plan to buy a new property to move in to as my only primary residence. The property that I currently own is going to be let out, I have a buy-to-let agreement already in place.


My question is, as I'm letting to buy, not buying an additional primary residence, nor am I buying to let. Will I be effected by the new +3% SDLT?


I'm fairly sure I know the answer (unfortunately!) but the advice I'm getting from people is pretty non-committal!


Thanks!

alchemist.1

Yes.

You will be buying an additional property. It doesn't go on what you use it for unless you are selling your current property.

Alec_85

I thought so. Bit of an !!!! as this flat was supposed to be my nest egg in years to come. I'm not planning to become a property mogul, this kind of charge seems pretty unfair to me! Oh well!

Bluebirdman_of_Alcathays

You are depriving others the ability to own a home - like it or not you are exactly the person this extra 3% is supposed to get.

You can avoid the 5p plastic bag tax by not using them. You can avoid the extra SDLT by selling your "next egg"

G_M

How many eggs are you planning to buy? You only need 2 (though ideally 3) to make an ommelette.

Alec_85

Wow - you don't like me.


I'm pretty sure the issue is London; and 3% is considerably more than 5p.


I'd saved my money, and planned this before this new tax was even talked about. Never mind.

kinger101

If the 3% extra stamp duty suddenly makes the "investment" non-viable, it was probably a very bad idea to begin with. 3% over say a period of 10 years of ownership is trivial. In some parts of the country, houses might go up by that in a couple of months.

Alec_85

The bigger issue is needing the additional £6k up front... and it hurts even more knowing had I completed this month there would be no extra SDLT.


I live in Newcastle, not the south so prices don't quite go up that quickly!

giddypenguin

House prices are high - so bad that young FTBers are having trouble getting onto the ladder. Part of the reason for this (although not the only reason) is because demand is very high. To try and reduce demand, the government has increased SDLT for people buying second (third, forth etc) homes, so that they might consider other investments (which may also be more lucrative) which don't reduce housing stock for FTBers.

It makes sense - you can avoid this tax very easily by investing your money elsewhere. It may even prove more profitable for you - maybe get some good financial advice?

j_yorks

The changes were announced last year so it hasn't been a secret. I agree it's a lot of money but ultimately you are in a luxurious position being able to afford two homes, especially in London. Many can't even afford one in the capital right now. Many cant even afford rent! So you may find sympathy is lacking. "My diamond shoes are too tight", etc....

Pixie5740

The OP lives in Newcastle not London. However, you are right about the changes to SDLT being announced last year so people have had time to get their ducks in a row before 1st April.