Stamp Duty question - I can't find an answer to this anywhere.

ambc

The place has been empty since November, partly because of our naivety and partly because the letting agent was a bit crap. We've now got a new agent who's very proactive plus a new tenant (who looks likely to be long term) moving in next week, with contracts already signed.

Prior to that we had good tenants in for just over 2 years. They only moved out because they were offered a council house.

Then, prior to that it sat empty for over 2 years because of damage caused by a water leak in a neighbouring property which required extensive remedial work, all exacerbated by an insurance company !!!! up (which they compensated us for).

Long story short, it costs us just over £500 per month total when it's empty, but all our costs are covered with a surplus of around £50 when its tenanted.

So, hopefully we'll not lose any more on it, and it should now just tick away in the background building equity (the neg equity is down to only around £5/6k or thereabouts, based on similar properties in the same street).

It means that if we sold it, we'd lose roughly the same amount as we'll be paying in increased stamp duty on the new place, so it probably makes sense to keep it given there's a tenant moving in soon.

I guess the most sensible option right now is to reduce the deposit on the new property to allow for the increased stamp duty.

That sound about right?

boxrick

If you are not married and you can purchase the new place with your own income, simply exclude her from the purchase and mortgage. This will then officially be your one and only property and you will not pay the extra SDLT.

You are only classed a single entity under marriage.

Alternatively you are given a period of time to sell the first property where you will get a refund, perhaps this will give your property enough time to turn back into positive equity, you can both sell it for a slight profit and get your stamp duty refund.

ambc

No, not married, but unfortunately the new property will require both incomes to finance.

Alternatively you are given a period of time to sell the first property where you will get a refund, perhaps this will give your property enough time to turn back into positive equity, you can both sell it for a slight profit and get your stamp duty refund.

Ah, didn't think of that! Definitely something to consider. Cheers.

beecher2

If you're in England you now have 36 months to sell it and get a refund, 18 months in Scotland

AnotherJoe

amnblog wrote: »

Your response is at the ballot box in 2019.

Is that because an incoming Labour government is very likely to repeal laws that are unfair on landlords? :rotfl:

Or because a Conservative government is likely to reverse its stance on landlords and give up free money? :eek:

:rotfl:all round