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New Stamp Duty Question
AndyBSG
Posts: 987 Forumite
Hopefully a simple one to answer.
Now that the new stamp duty changes are in and anyone buying a second property gets clobbered with the increased rate I just wondered when this is due?
Reason I ask is my parents are looking to downsize from their 4 bedroom house to a smaller bungalow.
However, the bungalow they have found and are interested in is in need of major work.
They have no mortgage on the current house so their plan is to buy the bungalow(either by remortgaging current property, or getting a mortgage on the new property and then paying it all off once the old property is sold, still discussing the best way to do that).
They will then continue living in their current home while the new Bungalow is remodelled which we're guessing will take up to 6 months.
They'll then sell the old house and move into the bungalow so will technically own two properties for around 6 months.
I'm guessing they will have to pay the higher rate of stamp but will they then be able to reclaim this somehow?
Now that the new stamp duty changes are in and anyone buying a second property gets clobbered with the increased rate I just wondered when this is due?
Reason I ask is my parents are looking to downsize from their 4 bedroom house to a smaller bungalow.
However, the bungalow they have found and are interested in is in need of major work.
They have no mortgage on the current house so their plan is to buy the bungalow(either by remortgaging current property, or getting a mortgage on the new property and then paying it all off once the old property is sold, still discussing the best way to do that).
They will then continue living in their current home while the new Bungalow is remodelled which we're guessing will take up to 6 months.
They'll then sell the old house and move into the bungalow so will technically own two properties for around 6 months.
I'm guessing they will have to pay the higher rate of stamp but will they then be able to reclaim this somehow?
0
Comments
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They'll need the money up front for the SDLT if buying with a mortgage. Technically it's due to HMRC 30 days after purchase, but if you're buying with a mortgage the solicitor will want the money up front at completion.
They can then reclaim the extra 3% when the old property sells - I don't know what lead in times there are between telling HMRC and receiving the cheque (this is all quite new), but if it's anything like claiming a refund on your tax return around about a month.0 -
Sell the current house and rent a smaller one until the bungalow is ready.0
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6 month rental contract plus removals x 2 probably cost more than the extra, refundable SD
Also the pain of moving all their belongings twice... They have a lifetime of old tat clogging the place up!
Cheers for the feedback guys. Paying the extra stamp shouldn't be a problem but good to know they will get it back as it did seem a bit unfair being hammered for the 'BTL/Second home tax' when that isn't what they're doing0
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