Stamp duty help

Flosmum_2

Hello all. Hoping someone can help explain the new stamp duty rules...

Me and hubby both own houses and both are on permission to let so neither are our main residence. We live in rented as needed to be closer to his family however market was poor at that time hence put both on ptl and we rented. We now want to buy a house to be our residential home. I can't sell mine (due to being in negative equity). We need to sell his to get the equity out. We'd prefer to do a non simultaneous sale and purchase as we've seen something we want to buy yet not sold his yet, so we will sell that one but not straight away. As the new house will be our residence, do we still have to pay the extra 3%? Thank you in advance for any info!

dimbo61

In a word YES you will need to pay the 3% extra.
If the property is only in husbands name and he sells his other place you might get the 3% back

p00hsticks

Flosmum wrote: »

Hello all. Hoping someone can help explain the new stamp duty rules...

Me and hubby both own houses and both are on permission to let so neither are our main residence. We live in rented as needed to be closer to his family however market was poor at that time hence put both on ptl and we rented. We now want to buy a house to be our residential home. I can't sell mine (due to being in negative equity). We need to sell his to get the equity out. We'd prefer to do a non simultaneous sale and purchase as we've seen something we want to buy yet not sold his yet, so we will sell that one but not straight away. As the new house will be our residence, do we still have to pay the extra 3%? Thank you in advance for any info!

Yes, you do, because you'll end up with more houses than you currently have. And you won't be able to reclaim the extra 3% when you sell his because it's not your main residence - so it makes no difference if you sell and buy at the same time or if you buy and sell later.

AnotherJoe

Yes. You are basically only exempt if you are replacing your main residence which you won't be,

See the flowchart in here https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

One way round might be to move into one of your BTLs so it becomes your main residence then sell that and buy your main residence. I don't know if there is a qualifying period for that, check the details.

Dragonek

There are useful Q&A on Zoopla.
According to that you would not have to pay extra 3% as it would be your main residential

What if the home I am buying will be my main residence?
If the home you are buying directly replaces your main residence, you will not be liable for the 3% surcharge, even if you own an additional home/s at the same time. This example is straight from the Government's consultation document:
"A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply."
But the Treasury says that moving out of rented accommodation does NOT constitute a main residence. Your last residence will need to be disposed of (ie, sold) to escape the surcharge. Gifting a property however, DOES constitute disposing of your main residence.





Problem could be the fact that you also own a property . You may fall under this



Q. What if I already own a property, but I'm buying with someone who doesn’t?
A. Unfortunately even if just one of you already owns a home, when you are buying another one together, the 3% Stamp Duty surcharge will apply.

You can find Zoopla Q&A by typing "let to buy zoopla stamp duty" in google

AnotherJoe

Dragonek, the OP is not replacing their main residence.

So your answer is irrelevant to the OPs question. And wrong.

Flosmum_2

Gosh all very complicated! Who can give me advice I what to do - solicitor? Or is there anywhere I can get some free advice? Thanks so much for the responses so far. Feeling like we're being penalised when we don't do this to make money! The rent on mine only just covers the interest payments !!

David_White

There's no real legal advice to be given I'm afraid, if you're purchasing a 2nd property and not selling the current one the new stamp duty applies,

You say your husband is selling his property, does his income support buying the new property in sole name?

davidmcn

Flosmum wrote: »

Gosh all very complicated! Who can give me advice I what to do - solicitor?

Solicitor can give you advice, but I can't see that there's much to add to the above - you'll be liable for the additional rate of SDLT.

AnotherJoe

Why is it complicated ? Look at the flowchart.

amnblog

We have a simple flowchart on our website and that will tell you that you will pay the extra 3% as you will own more that one property and the end of the transaction and you are not replacing your main residence.

George thinks you are trying to get a result by being a property magnate so he wants your cash.