Stamp Duty on Second Properties

amillionlittlepieces

I've asked this question before on here but had a new though on my situation and wouldn't if anyone had an opinion on my thoughts.

Basically my living situation over the past few years have been as follows;

1. Bought a property tenants in common with 4 friends. (Still own and rent out) lived there four years, selling (or buying myself out) not an option due to negative equity
2. Moved into Parents house as the group wanted to leave the above, thus becoming my primary residence for 6 months (this property has now been sold)
3. Moved into a rented flat (living there for 5 years)

Now I'm looking to buy with my fianc!e, I can't afford to pay the higher stamp at present and will hugely affect the house I can afford. I know that rented accommodation doesn't count as a primary residence as it needs to be disposed of (or that's the way I picked up the HMRC document), but if my parents was my last primary residence, and that has been disposed (sold) now, will I still be liable?

Any thoughts much appreciated

Caz3121

you will still own another property...I assume your name is on the land registry so cannot see any of the answers on your previous thread changing

Trying_to_be_good

You'll be paying the additional stamp duty unless you sell the property (or at least your share) of the previous main residence. You own a property that you're not living in, that's the key.

kingstreet

Your property portfolio is increasing from one to two.

Therefore the SDLT surcharge is payable and no nil rate band applies.

amillionlittlepieces

Thanks guys,

I just wondered that if I owned a place and was living in it now, then my background property wouldn't make a difference as I would be replacing and selling my main residence. I was hoping that moving in to my parents would count as a main residence that had been disposed. Suppose that if you are correct, the last main residence needs to be owned by me.

Shame, I thought I might have had an out!

amillionlittlepieces

kingstreet wrote: »

Your property portfolio is increasing from one to two.

Therefore the SDLT surcharge is payable and no nil rate band applies.

When you put it like that, it makes it quite clear!

silvercar

If your fiance bought in sole name that would work. But whether that would effect your mortgage amount....

lovinituk

amillionlittlepieces wrote: »

I just wondered that if I owned a place and was living in it now, then my background property wouldn't make a difference as I would be replacing and selling my main residence.

That would be a different scenario as you would already own 2 properties and would still have 2 properties after replacing your main residence. In those circumstances you would almost certainly not be subject to the additional duty.