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Let-to-buy
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I'll know which tomorrowAnotherJoe wrote: »Either you are badly misunderstanding the broker or your broker is an idiot
Value-for-money-for-me-puhleeze!
"No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio
Hope is not a strategy
...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!0 -
VfM4meplse wrote: »Needs must, I'm afraid. The capital is needed to help me secure a new home, at this point in my life a mortgage is not an option - although it could be in future. LTB doesn't suffer stamp duty as the property doesn't change hands.
Eta: I'm in a similar situation to this: http://www.thisismoney.co.uk/money/mortgageshome/article-2914608/Are-moving-house-don-t-want-sell-try-let-buy.html . Again, an experienced independent broker is recommended, but I've been stung in the past.
Wrong, you will have to pay an extra 3% stamp duty on the property to buy which you live in. The legislation is designed to discourage second home ownership to give first time buyers a chance.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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The legislation is designed to generate revenue.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
I take it the advice above is correct? In which case I would have to pay two lots of stamp duty at 3%? Now I'm really confusedThe legislation is designed to generate revenue.
Back to the drawing board for me: https://www.gov.uk/stamp-duty-land-tax/print
Eta: am really p*ssed off now, had been making plans at full pelt all weekend but this is going to cost me a lot more than I had planned for - effectively a whole year's rental income
. . The mortgage adviser who contacted me was through MoneySuperMarket and I have lost all confidence in both him and them. It's not put me off the purchase though, I sweat blood and vomit to buy my own home and there is no way I am selling it: the 3% is a pill I would have to swallow regardless. Value-for-money-for-me-puhleeze!
"No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio
Hope is not a strategy...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!0 -
You pay the extra stamp duty on the one you buy, if this means at the end of the day of the purchase you own 2 or more properties.
There are a few caveats, but from your posts its doesn't look like you will meet them.
You do not pay stamp duty on the property the LTB mortgage is secured on as you already own it, however you will pay stamp duty on any additional property you purchase, which will include the surcharge for owning more than 1 property.
Hope that clarifies your positionI am a Mortgage Adviser
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.0 -
I'm reading between the lines that you situation precludes an ordinary resi mortgage hence why you want a let to buy. So it's straight forward enough as long as you meet criteria.
I would think this is do-able.
I am currently just buying a but to let and the 3% SD did not deter me, it's a business cost, and given it's a business, hey ho.
Income tax is going to be increasing but planning for this in advance should mitigate the additional burden.
All the best OP0 -
Thanks for the PM, Conrad. It'll be a cold day in hell before the likes of Gideon ruin my plans
Perfectly. This was the penny that dropped on me from a great height this morningYou do not pay stamp duty on the property the LTB mortgage is secured on as you already own it, however you will pay stamp duty on any additional property you purchase, which will include the surcharge for owning more than 1 property.
Hope that clarifies your position
Value-for-money-for-me-puhleeze!
"No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio
Hope is not a strategy...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!0 -
Obviously you were always going to be paying stamp duty on your next purchase, just going down the LTB route means you'll be paying an additional 3% stamp duty.
E.g. for a £200k house you'll have to pay an additional £6,000. In other words, your stamp duty bill will be going from £1,500 to £7,500 on a £200k property due to the new legislation.
If you're a higher rate tax payer you'll also want to look into the new changes regarding offsetting mortgage interest as a business expense.0 -
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Not just the broker I'm afraid. It seems a number in the real estate business are still getting their heads around the implications of Gideon's LawAnotherJoe wrote: »So, broker was an idiot then ?
Checking in once more in my state of highly p*ss-offedness. I do now realise why the so-called broker's rates were so low and his voice hadn't broken, obviously an amateur (she says, spitting out sour grapes). Now I need to find some reliable advice on how to pick a mortgage adviser Value-for-money-for-me-puhleeze!
"No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio
Hope is not a strategy...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!0
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