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Own buy-to-let, now buying first home stamp duty

richard246
richard246 Posts: 5 Forumite
in House buying, renting & selling
Morning All,

I own a buy-to-let property which does not have a mortgage. I'm now wanting to buy my first home. Because I own a buy-to-let property would the new property count as a second property? Would I have to pay the 3% buy-to-let / second home stamp duty fee that came in April this year?

Thanks,

Richard

Comments

  • sheramber
    sheramber Posts: 24,703 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    richard246 wrote: »
    Morning All,

    I own a buy-to-let property which does not have a mortgage. I'm now wanting to buy my first home. Because I own a buy-to-let property would the new property count as a second property? Would I have to pay the 3% buy-to-let / second home stamp duty fee that came in April this year?

    Thanks,

    Richard


    Yes, you will own two properties .
  • marksoton
    marksoton Posts: 17,516 Forumite
    richard246 wrote: »
    Because I own a buy-to-let property would the new property count as a second property?

    Um, yes. 1+1 = shock horror 2.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    richard246 wrote: »
    I own a buy-to-let property which does not have a mortgage. I'm now wanting to buy my first home.

    No, you're buying your second. You just happen not to live in the first.
    Because I own a buy-to-let property would the new property count as a second property?

    Of course. Because it is.
    Would I have to pay the 3% buy-to-let / second home stamp duty fee that came in April this year?

    Of course.
  • richard246
    richard246 Posts: 5 Forumite
    Cheers guys
  • TrickyDicky101
    TrickyDicky101 Posts: 3,535 Forumite
    Part of the Furniture 1,000 Posts
    You should also consider that you won't have the possibility of having the additional SDLT refunded should you sell the BTL within 3 years of purchasing your new home. So if this is significant, you should consider selling the BTL first.
  • richard246
    richard246 Posts: 5 Forumite
    The new property will be around the £120,000 / £130,000 mark, it's just another £3,600 I'll have to find for effectively 'a first home'.

    I've just read a perfect example of my own situation on .gov.uk:
    'N purchases her first property, which she will use as a buy-to-let. At the end of the day of the transaction she owns one property, so she will not pay the higher rates of SDLT, even though she is not using it as her main residence.
    Two years later, N purchases a residential property which she will use as her main residence, but she decides to keep her buy-to-let property. In this instance, as she has two properties at the end of the day of the transaction and has not replaced a main residence (as she has not sold a previous main residence), the higher rates will apply.'
  • teddysmum
    teddysmum Posts: 9,533 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Could you not move into the rented house for a while ?
  • Daniel54
    Daniel54 Posts: 871 Forumite
    Part of the Furniture 500 Posts Name Dropper
    teddysmum wrote: »
    Could you not move into the rented house for a while ?

    That wouldn't make any difference to the additional 3% SDLT
This discussion has been closed.
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