Separation and Stamp Duty

bry5o

Looking for some advice.

Lived with my girlfriend for 12 years and we owned a house together. Separating a year ago I moved out and rented for a year, landlord is selling and I am interested in buying.

Strictly the purchase will be for a 2nd property that I own but my only and main residence. Will I be forced to pay the extra 3%???

My ex can not afford to buy me out and I don't want to ask her to sell.

Thanks

B

DUTR

Your solicitor will be advising if SD needs to be paid not some internet strangers.

Jox

If you already own a property you pay the extra 3% on the second property.

bry5o

Any readers had any first hand experience of paying the extra 3% ?

da_rule

I've had experience of dealing with people who are paying the extra 3%.

Bob_Bank_Spanker_2

There is a huge amount of material out there, including an HRMC manual that will explicitly tell you the answer to your query. Everything you've said suggests you will have to pay the additional 3%

da_rule

Are you still named on the mortgage on the original house?

booksurr

there is no "strictly" about it, that implies you think you are being unfairly caught by a technicality. You are not, you are subject to the higher rate fair and square since you own an existing property and now wish to buy an additional property.

The new property may well be your main home but you have not disposed of ("sold") your old main home, so you will go from owning 1 to owning 2 properties, QED the higher rate applies to the purchase of additional properties (clue in its name "Higher rates for purchases of additional residential properties")

kingstreet

bry5o wrote: »

Lived with my girlfriend for 12 years and we owned (OWN, SURELY?) a house together. Separating a year ago I moved out and rented for a year, landlord is selling and I am interested in buying

My ex can not afford to buy me out and I don't want to ask her to sell

What about a joint borrower, sole proprietor remortgage as part of the settlement?

Effectively, you become a guarantor only.

You can remain on a mortgage but your ex will be sole owner of the property, so your new purchase will be your only home and you will therefore avoid the SDLT surcharge.

Get professional advice of course!

da_rule

An idea that may work. Could you let your ex have your share of the house. In exchange she gives you a charge over the property that says you are to be paid X amount when she sells it? This would have to rank second to the mortgage and would need the lenders permission. You also run the risk that if she sells it in negative equity or only just breaks even with the mortgage you could end up with nothing (as you could if you were a part owner).

You'd likely incur legal costs by doing this. These might exceed the extra 3% you have to pay in stamp duty. So as much as it's annoying, just paying the extra may be the way to go. If, within 3 years, your ex can buy you out or sells the property you can claim back the additional 3% stamp duty.