First Time Buyer - Unusual Situation

debugz

Hello All,

Some time in 2015 before the Stamp Duty changes were implemented, my dad (who is not resident in the UK) asked me to purchase a flat for him to rent out. As he was not resident, it was easier for me to get a BTL mortgage, which I did and got hold of the apartment.

So, technically, I am the owner of the property but in reality it is my dad who funded the purchase entirely.

Now that I want to purchase my own place to live in (I rent currently), I am faced with a higher Stamp Duty bill. I was wondering if there is any way to reduce that bill. My dad is OK for me to sell the flat in my name if that will turn me into a 'First Timer' or one who only has one home?

I'd greatly appreciate any information on this.

Thanks.

ACG

You would need to sell that property as far as I am aware.

debugz

Thanks for the reply. Will this mean that for stamp duty purposes, I need to first complete the sale and then go for another property or can this be done in parallel?

davidmcn

silvercar wrote: »

Any order. If you buy before selling you pay the extra SDLT and then get it back when you sell within 18 months.

No, the OP needs to sell first (or simultaneously). The concession for selling afterwards only applies if you are replacing your main residence (and the relevant period is 3 years, not the 18 months originally proposed in the consultation).

amnblog

Correct David