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Buy to let first property.

xpjpx2000
xpjpx2000 Posts: 13 Forumite
in House buying, renting & selling
Hi, I am looking at buying a property which will be let out. It will be my only property (including my place of residence) so what stamp duty rates will I need to pay?
Thanks.

Comments

  • LEJC
    LEJC Posts: 9,618 Forumite
    How much is the purchase price?
    frugal October...£41.82 of £40 food shopping spend for the 2 of us!

    2017 toiletries challenge 179 out 145 in ...£18.64 spend
  • xpjpx2000
    xpjpx2000 Posts: 13 Forumite
    Around 300k. Thanks.
  • always_sunny
    always_sunny Posts: 8,314 Forumite
    Xpjpx2000 wrote: »
    Hi, I am looking at buying a property which will be let out. It will be my only property (including my place of residence) so what stamp duty rates will I need to pay?
    Thanks.

    How many properties will you own at the end of the transaction? 1 or more?
    If 1 then the transaction should not attract additional SDLT.
    EU expat working in London
  • Harryp_24
    Harryp_24 Posts: 172 Forumite
    Third Anniversary
    its like people dont even bother looking things up anymore.
  • xpjpx2000
    xpjpx2000 Posts: 13 Forumite
    I did look up and it is not clear. All the documentation refers to 'additional property or buy-to-let' suggesting that if it is for buy-to-let it doesn't matter if it is your only property or not. This would be the only property. Thanks.

    *it's
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    I think the legislation is pretty clear. You don't currently own any properties so how could this property be an additional or second property? Additional to what other property? Which property would be the first if not this one?

    Therefore the SDLT for the purchase of this property will be circa £5k.
  • kingstreet
    kingstreet Posts: 39,466 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    When you buy your FIRST property, regardless of the use to which you intend to put it, the SDLT surcharge doesn't apply.

    When you increase your portfolio from 1 to 2, 2 to 3 etc, then the surcharge will apply.

    If you do not own your own home and you have no experience as a landlord, you will have very limited lender options if you need a mortgage.

    You should expect to have to prove you could afford it as a residential, as the lender will use this to guard against you gaming the system.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    * Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

    Topics covered:

    * Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new protection (2015)

    * Deposits:     payment, protection and return

    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

    * Rent increases: when & how can rent be increased?

    * Repossession: what if a LL's mortgage lender repossesses the property?

    * New landlords: advice, information & links

    * Letting agents: how should a landlord select or sack?
This discussion has been closed.
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