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Stamp Duty on 2nd property
loobiej1
Posts: 55 Forumite
Hi All
5 Years ago we moved out of our house into a rented house so we could get our children into better school. Our original house i have on a BTL with skipton.
The house me and my family live in now is where we would like to stay and our landlord would like to sell to us.
We are in process of doing a genuine bargain price mortgage with NW, he is selling the house to us under market value.
The house hasnt been valued as yet (tomorrow) the kind of figures we are hoping for is 125k but loan amount 105k, can anyone tell me which figure i pay the stamp duty on?
Thank you
5 Years ago we moved out of our house into a rented house so we could get our children into better school. Our original house i have on a BTL with skipton.
The house me and my family live in now is where we would like to stay and our landlord would like to sell to us.
We are in process of doing a genuine bargain price mortgage with NW, he is selling the house to us under market value.
The house hasnt been valued as yet (tomorrow) the kind of figures we are hoping for is 125k but loan amount 105k, can anyone tell me which figure i pay the stamp duty on?
Thank you
0
Comments
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SDLT will be charged on the purchase price. It sounds as if the 3% surcharge for additional properties will apply.0
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£125k. What your vendor receives.Everything that is supposed to be in heaven is already here on earth.
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The seller wants 105k, under the genuine bargain price
A deposit is not required unless the loan exceeds our maximum LTV.
so i am saying the purchase price would be 125k? sorry its taking me a bit to get my head around this.0 -
The tax is calculated on the actual price you pay for the property. You will probably have to pay 3% as you already own another property.your solicitor will be able to advise you.0
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The seller wants 105k, under the genuine bargain price
A deposit is not required unless the loan exceeds our maximum LTV.
so i am saying the purchase price would be 125k? sorry its taking me a bit to get my head around this.
You're not getting a 100% mortgage. The landlord is gifting you equity so that you only need to borrow £105k. It's a concessionary purchase and I can only think of 1-2 mortgage lenders who might grant a mortgage for a concessionary purchase involving landlord and tenant.
You pay SDLT on the consideration you are paying which in your case is the £105k , and will be at the higher rate.0 -
Why is your landlord offering such a discount? He will avoid agents fees and a void without rent but I would think that would be far less than £20k.0
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You're not getting a 100% mortgage. The landlord is gifting you equity so that you only need to borrow £105k. It's a concessionary purchase and I can only think of 1-2 mortgage lenders who might grant a mortgage for a concessionary purchase involving landlord and tenant.
You pay SDLT on the consideration you are paying which in your case is the £105k , and will be at the higher rate.
Thank you for explaining, yes Nationwide are the ones that have said we can go with for this kind of purchase, i believe Halifax are the other. Thanks again0 -
Why is your landlord offering such a discount? He will avoid agents fees and a void without rent but I would think that would be far less than £20k.
Hello
we are his only tenant and he bought it & did it up, we agreed at the time he would sell to us at a set price at the time.
Thanks0 -
Yep. Seconded.You pay SDLT on the consideration you are paying which in your case is the £105k , and will be at the higher rate.
The landlord will however calculate/be charged CGT on the full market value.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.0
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