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Help! Second property and London stamp duty

MICKEY88
MICKEY88 Posts: 7 Forumite
Eighth Anniversary Combo Breaker
in House buying, renting & selling
Hi everyone,

I'm wondering if anyone can help. I own a buy to let property in Plymouth from my time in the military with my ex (split 50/50) and I now currently rent in London.

I have saved enough for a house in London now and have been cleared for up to £425,000 with my current partner. I have now, however, just learnt about stamp duty and instead of paying £9000 will have to pay £26,000 as it's a second property.

Is there any way around this? Would I have to sign it over to my ex? There is a lovely family in the house with children in a good school catchment so I don't want to sell as I really don't want to have to kick them out.

Any help would be much appreciated as I've saved for so long to now have to find thousands more is quite disheartening.
Prizes so far (started in October 2016): Murdock London Grooming Set:beer::j:j
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Comments

  • gettingtheresometime
    gettingtheresometime Posts: 6,911 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    Can't your ex buy you out ?
  • MICKEY88
    MICKEY88 Posts: 7 Forumite
    Eighth Anniversary Combo Breaker
    My partner is a first time buyer if that helps in any way.
    Prizes so far (started in October 2016): Murdock London Grooming Set:beer::j:j
  • MICKEY88
    MICKEY88 Posts: 7 Forumite
    Eighth Anniversary Combo Breaker
    unfortunately not :(
    Prizes so far (started in October 2016): Murdock London Grooming Set:beer::j:j
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    While you part own the other property you are stuck with the additional stamp duty on your new house. If your ex can't buy you out then your only option is to sell it and split the proceeds.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    Is your share in the Plymouth house <£40k-worth? If so, you're fine.

    If not, then you're looking straight at +3% SDLT. You currently own one property. When you finish, you will own two properties.

    The only other way out is not to own the Plymouth property.
  • MICKEY88
    MICKEY88 Posts: 7 Forumite
    Eighth Anniversary Combo Breaker
    If I handed the house over to my ex, would that eliminate the stamp duty?
    Prizes so far (started in October 2016): Murdock London Grooming Set:beer::j:j
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    MICKEY88 wrote: »
    If I handed the house over to my ex, would that eliminate the stamp duty?
    Is there an outstanding mortgage on it? If yes, would a bank give your ex a mortgage for that amount? I'm guessing not because you said they couldn't afford to buy you out.
  • MICKEY88
    MICKEY88 Posts: 7 Forumite
    Eighth Anniversary Combo Breaker
    He should be able to get the mortgage quite easily
    Prizes so far (started in October 2016): Murdock London Grooming Set:beer::j:j
  • lovinituk
    lovinituk Posts: 5,711 Forumite
    1,000 Posts Combo Breaker
    MICKEY88 wrote: »
    He should be able to get the mortgage quite easily
    Then he CAN buy you out. Why did you say he couldn't?
  • MICKEY88
    MICKEY88 Posts: 7 Forumite
    Eighth Anniversary Combo Breaker
    I thought you meant in cash not mortgage?
    Prizes so far (started in October 2016): Murdock London Grooming Set:beer::j:j
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