Buying 1st Buy-to-Let Property

tomroberts456

Hi there,
I live with my girlfriend in a house that I purchased 2 years ago. My intention is to buy another house and keep this as a buy-to-let property for some additional income (once the mortgage is paid off).


I have been looking at the new Buy-to-let stamp duty rules and understand that if we purchased our next property, it would be eligible for buy-to-let stamp duty.


The house I currently own was purchased for 190k and the next house I wish to buy will be in the region of 350k.


Here's the question, if our next house will be our main residence, will we have to pay buy to let stamp duty on that house? Even though it will be our main residence? Is it possible to 'top-up' the stamp duty on the previous, much cheaper house? and just pay residential stamp duty on the house that will be our main residence? BtL stamp duty on the new home would be 18k as opposed to 7.5k (residential).


Thanks for your help in advance,


Tom

Pixie5740

It's not BTL SDLT, it's a surcharge for buying additional properties which is what you will be doing. You are not replacing your main home because you are keeping hold of it and therefore you will pay the additional 3% SDLT on the next purchase. It's all clearly explained in HMRC's Guidance Note.

Pixie5740

So SDLT for the purchase of a £350k property which is an additional property will be £18k.

G_M

tomroberts456 wrote: »

......it would be eligible for buy-to-let stamp duty.

:rotfl: Love it! 'Eligible'. Yeah right, you can pay it if you'd like to.

Errrr... ' liable'?

As Pixie says, it's not BTL SDLT, it's 2nd property SDLT.

And for more on letting, see

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

Cakeguts

Nothing to do with buying properties to let and everything to do with buying a second property. If you already own a property and you buy another you have to pay an extra 3% stamp duty when you buy the second house. You can't choose which house you pay it on. If you already own a house and you buy another one as a main residence and keep the first one you pay an extra 3% stamp duty on the second one when you buy it.

iantojones40

I'm guessing you're fully up to speed with S24 and Basel 3 as well as other regulations effecting the future BTL market... What's your opinion on how these will impact your financial plans?

Wanderingpomm

No, if you are buying a main residence you will not have to pay the additional stamp duty rate as long as you are moving from your permanent residence to permanent residence

nubbins

iantojones40 wrote: »

I'm guessing you're fully up to speed with S24 and Basel 3 as well as other regulations effecting the future BTL market... What's your opinion on how these will impact your financial plans?

Whats yours smart ar5e

G_M

Wanderingpomm wrote: »

No, if you are buying a main residence you will not have to pay the additional stamp duty rate as long as you are moving from your permanent residence to permanent residence

and providing you sell the original permanent residence, either simultaneously or within 3 years.

teddysmum

As you say the current property is still mortgaged, will you be able to get a second mortgage for a much more expensive property ? Also, the current mortgage may have to be changed to a more expensive BTL one and you will need the mortgage company's permission to let (not all will agree to this ).