Buying before we sell our current home ...

lynnoakwood

Please can anyone advise?

We're about to buy a bungalow using cash from a legacy, but haven't yet sold our current home - we fully intend to, but want to have the new place completely decorated, stuff installed, etc, before we actually move in

No mortgages are involved, either on the current or new home, and I realize we'll have to pay insurance and council tax on both until the old one is sold, but is there anything else I've not thought of?

I'm aware that those who own two properties get a load of grief these days - although we've no intention of this being the case for long - but just don't want to get in a load of trouble!!

visidigi

Stamp Duty.

Pixie5740

You'll need to pay an additional 3% SDLT but you'll be able to reclaim it if you sell the current property within 36 months of buying the new one.

lynnoakwood

Thanks for those tips - I imagine the solicitors will handle the payment of the stamp duty when we pay over everything else?

I guess to be fair the stamp duty is pretty well publicized; I was wondering more about anything unexpected which folk just don't think of, especially as I realize most sell and buy at the same time. Not having been in this position before, I'm a bit worried about anything unexpected coming crawling out of the woodwork :-(

fed_up_and_stressed

Some councils charge double council tax for properties that have been empty over two years (hopefully you won't be on the market that long) also you will require specialist empty and unoccupied house insurance which is generally more expensive -most have the condition attached that the property is checked weekly.

Thanetia

As already said above, check the T&C's on your insurance, should be OK but make sure. Check security on both properties if they will be left empty for any amount of time. Divert a small amount of the legacy cash to purchase a kettle, mugs and your choice of beverage for the bungalow. You can live without most things, but not a cuppa .......

lynnoakwood

Definitely with you on the cuppa!! ;-)

What about Capital Gains Tax ... if I've read it right I think we have 18 months to sell the old place before this kicks in ... but does anyone know if that counts from the day we actually purchase the new place, when we move in or what??