Shop with flat above and SDLT

ukmike

http://www.telegraph.co.uk/investing/buy-to-let/investors-turn-to-semi-commercial-property-to-cut-stamp-duty-bil/

brodawel

kinger101 wrote: »

Do you know what the value of the flat associated with the shop might be? If it's below £40K, it wouldn't count for the purposes of the new SDLT.

I would say it's around £60K for the flat if it were to be sold on it's own. I think it's a good price at approx £120K for the whole, especially to me as I've been looking for somewhere to trade from. I could handle paying the extra 3% on the shop/flat but for that to happen we'd have to buy a house first and unfortunately there's a shortage of decent homes to buy, we've been looking for eight months. It's a shame it wasn't just a shop on it's own without a flat. I can't think what else we can do except hope the shop is still for sale when we find a house. The trouble is we could end up buying a house near by, not get this shop, and find another shop miles away from where we live. Nightmare!

Thanks everyone

anselld

brodawel wrote: »

Oh dear!

That's put a rather different light on the whole idea. The shop is approx 120K and our next home will be approx 350K. If we buy the shop first we'll then have to pay approx 18K instead of 7.5K when we buy a house. If we buy a house first we would pay approx 3.6K instead of zero when we buy the shop.

Not quite as appealing now.

That is incorrect. You would not pay additional SDLT if you bought mixed use *after* residential.

brodawel

ukmike wrote: »

http://www.telegraph.co.uk/investing/buy-to-let/investors-turn-to-semi-commercial-property-to-cut-stamp-duty-bil/

Great link thank you.
It seems we're ok buying mixed use after we've bought our residential house but not before, or is it saying otherwise?

brodawel

I've just been reading the GOV.UK site and it mentions about if you exchanged contracts before 26/11/15 which we did, but doesn't give any further details? (see highlighted in red) Also our main residence has already been sold, so again it's unclear? (see 2nd bit in red) But when I complete their calculator it doesn't give enough options to allow for these aspects? I copied this from their site:



Higher rates for additional properties
You’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one.

You may not have to pay the higher rates if you exchanged contracts before 26 November 2015.

If you’re replacing your main residence

You won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If there’s a delay selling your main residence and it hasn’t been sold on the day you complete your new purchase:

you’ll have to pay higher rates because you own 2 properties
you may be able to get a refund if you sell your previous main home within 36 months

davidmcn

brodawel wrote: »

it mentions about if you exchanged contracts before 26/11/15 which we did

You haven't exchanged contracts before 26/11/15 for the purchase of a property which hasn't yet completed. (As far as I can tell from everything else you've said, anyway!)

brodawel

davidmcn wrote: »

You haven't exchanged contracts before 26/11/15 for the purchase of a property which hasn't yet completed. (As far as I can tell from everything else you've said, anyway!)

Ahh I see that now thanks, I don't know why but I thought it was referring to my previous main residence

lincroft1710

You will pay Council Tax on the flat and Non Domestic (or Business) Rates on the shop

sheramber

I you owned the shop and flat but did not live in the flat then you sold your main residence then you would not pay the extra 3% if you replaced your main residence within 36 months.

I don't know whether the same would apply if you bought the shop and flat after selling your main residence but did not live in the flat and then bought your new main residence within the 36 months.

Worth looking into to.

davidmcn

sheramber wrote: »

I don't know whether the same would apply if you bought the shop and flat after selling your main residence but did not live in the flat and then bought your new main residence within the 36 months.

No - that's the scenario which posts #6 and #8 are talking about. The fact the OP used to own a property is irrelevant, whether or not it was their main residence.