Owning two houses

leespot

We currently own two houses - live in one and rent out the other. I've been reading up on the increase in stamp duty for second homes (we completed on our current main home in January this year, before the rise in stamp duty kicked in for second homes). This extract on Zoopla from the government consultation document reads:

"A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply."


Just for the sake of my sanity - does this mean that if we sell our main home and move, we won't pay the extra 3%?

p00hsticks

leespot wrote: »

Just for the sake of my sanity - does this mean that if we sell our main home and move, we won't pay the extra 3%?

Yes, it does

leespot

Thank you!

SuzieSue

p00hsticks wrote: »

Yes, it does

Because otherwise the housing market would grind to a halt if everyone who had a second property was discouraged from selling their main residence and buying another one by the additional stamp duty.

agrinnall

SuzieSue wrote: »

Because otherwise the housing market would grind to a halt if everyone who had a second property was discouraged from selling it and buying another one by the additional stamp duty.

Really it wouldn't, because most people don't have more than one property.

SuzieSue

agrinnall wrote: »

Really it wouldn't, because most people don't have more than one property.

Well, according to this there were over 1.5 million people who had a second property in 2011 and there are probably even more now:

http://www.bbc.co.uk/news/election-2015-32393222

But, anyway, the reason the extra stamp duty does not apply in this case is because it would adversely affect the housing market.

agrinnall

SuzieSue wrote: »

Well, according to this there were over 1.5 million people who had a second property in 2011 and there are probably even more now:

http://www.bbc.co.uk/news/election-2015-32393222

But, anyway, the reason the extra stamp duty does not apply in this case is because it would adversely affect the housing market.

Saying it again doesn't necessarily make it so, provide some evidence and I might believe it. The article you link to is nowhere near as clear cut as you seem to think, and is largely irrelevant to legislation brought in some years later.

SuzieSue

agrinnall wrote: »

Saying it again doesn't necessarily make it so, provide some evidence and I might believe it. The article you link to is nowhere near as clear cut as you seem to think, and is largely irrelevant to legislation brought in some years later.

What evidence do you want? Why else would they exempt people selling and buying a PPR?

DavidT67

The new legislation is not as simple as you might think.
Who is "We" ? Married couple or Unmarried? Are both properties in joint ownership or some other set of arrangements?
Note that the new rules disadvantage married couples.

Best to get expert advice from an experienced legal adviser oh fiat with the new rules to avoid a nasty shock after completion.
Assurances from unqualified laymen such as estate agents won't cut it...
(This spoken from experience)

leespot

One mortgage in my name only, main residence is joint mortgage, we're not married.

DavidT67

Assume that ownership mirrors names on mortgages.

Take a look at these older threads and the government guidance referenced.

https://forums.moneysavingexpert.com/discussion/5494501

https://forums.moneysavingexpert.com/discussion/5486226

As unmarried individuals one of you owns two properties the other owns one.