Stamp Duty on new Main Residence - help!

SarahWhitesands

Hi everyone,

I'm looking for some advice please! I currently own a flat and the mortgage is due for renewal in a few months. I'd like to buy a new home but keep my flat and rent it out.

I'm confused as to whether I need to pay stamp duty because I will simply be changing my main residence?

Depending on when I find somewhere suitable, I will either be buying a new property before renewing my mortgage on my flat, or will do it once I have renewed. When I renew it I will renew it as a Let to Buy.

Any advice on whether I am able to avoid the stamp duty charge for a second home and which way I should do things would be much appreciated!

Still new to mortgages etc so be kind if I'm asking a silly question... !

pjcox2005

Yes, the additional stamp duty would be due if you are keeping your current home. You'd only not pay if you were selling your main residence either before or within a set period to buy a new main residence.

00ec25

SarahWhitesands wrote: »

Still new to mortgages etc so be kind if I'm asking a silly question... !

i'll be kind It is very simple:
Q: how many properties do you own now? Answer =1
Q: how many properties will you own in the future? Answer = 2

you are liable for the higher rate, you are buying an additional property without disposing (eg selling) of your current one. You are not therefore replacing your main home as nothing has been sold.

lots of info and a very big guide out there:
https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

saajan_12

SarahWhitesands wrote: »

Hi everyone,

I'm looking for some advice please! I currently own a flat and the mortgage is due for renewal in a few months. I'd like to buy a new home but keep my flat and rent it out. - so you will be increasing the number of properties you own, which is what higher rate SDLT is aimed at. COLOR]

I'm confused as to whether I need to pay stamp duty because I will simply be changing my main residence? - You always need to pay some stamp duty on any property purchase (unless under the 125k threshold. Here, you are not just changing your main residence, you are increasing the number of properties you own, so higher rate stamp duty is due.

Depending on when I find somewhere suitable, I will either be buying a new property before renewing my mortgage on my flat, or will do it once I have renewed. When I renew it I will renew it as a Let to Buy. - renewal? do you mean you are out of the fixed term? Then if you no longer have any Early Repayment Charges on your current mortgage, I would look for the best new deal for the new property when you come to buy, and pay off the current mortgage when you sell. That way you avoid an extra survey by porting and then remortgaging or remortgaging and then porting.

Any advice on whether I am able to avoid the stamp duty charge for a second home and which way I should do things would be much appreciated!

Still new to mortgages etc so be kind if I'm asking a silly question... !

You're increasing the number of properties you own, so higher rate SDLT is due. It woudl only count as replacing a main residence if you also SELL your current home, otherwise you are indeed buyign a second home so are liable for the SDLT.