Second property and SDLT

kirkofski

We are currently looking to buy a new house and as our current one is mortgage free and we have a good deposit towards the next one, we plan on buying the new house first and selling the old one straight after just to make the process easier. Once we sell our old house we will be using the money to pay off a chunk on the new mortgage(will be a Nationwide tracker mortgage with no overpayment fee).


Any advice on that in general would be nice but my main concern is the terminology in the info below which I copied from the GOV website;


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


I'm happy with paying the extra rate to begin with but its the "may be able" to part that worries me, is there any circumstances where the refund isn't payable once I sell my old house within the 3 year period?


Thanks

andrewjb3

Complete within 3 years (and you haven't bought something else in the meantime) and you get the 3% back..

booksurr

kirkofski wrote: »

I'm happy with paying the extra rate to begin with but its the "may be able" to part that worries me, is there any circumstances where the refund isn't payable once I sell my old house within the 3 year period?

the detailed guide may be more reassuring for you?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

the property on which you claim the refund must have been your "uninterrupted" ex main home. In other words: Property A was home, you buy B but don't sell A. If you then sell buy C and sell B, you lose the right to a refund on A since B is then the most recently sold ex main home, there was an "interruption" between A and C

simply having property A and B, and then claiming the refund on A within 3 years means there is no maybe about it. You would be entitled to the refund on A.