Any Options To Avoid Additional Stamp Duty?

Legacy_user

My head is melted trying to get round paying stamp duty on a 2nd property so I hope some of you can help!

I own my house; about 40% of the value outstanding on the mortgage. Out of mortgage term so on a variable rate. My mum lives there but she also owns an inherited property from my Step Dad.

I live part time in a rented room in a house share. I haven!!!8217;t changed any of my bills or banking over to my rented address!!!8230; just let them go to my mortgaged house and my mum forwards anything important, as I have moved rented accommodation 3 times in 2 years and couldn!!!8217;t be bothered changing everything every time.

My boyfriend owns his house; His only property. My boyfriend and I want to buy together. He will sell his house. I want to keep mine and continue paying the mortgage!!!8230; as my mum lives there, but it is in my name.

How do I buy a house with my boyfriend with avoiding the stamp duty on a 2nd property?

I am thinking I can switch my bills and banking to my current and hopefully last rented property address, but my name is still on the deeds and I still pay the mortgage for my house, so it will probably still be seen as my main residence, even though I haven!!!8217;t been for 2 years. Is there a way to prove its not my main residence?

I was debating gifting my house to my mum and she leaves it back to me in her will, while I continue to pay the outstanding mortgage, but if I do that, she may be liable for Stamp Duty on a 2nd property as she already owns an inherited property.

Does anyone have any ideas on how I can get round this, without having to sell my house and make my mum go back to her inherited property?

Thanks everyone!

G_M

Thre is only one way to avoid the additional 3% SDLT:

Only own one property.

You will have to either sell, or give away, your existing property before buying jointly with your boyfriend.

You cannot even sell/transfer after the new purchase and then reclaim the additional 3%, as your current property is not your main residence - it is your mum's main residence.



Although you don't ask, various other aspects of this occur to me:

* Does mum pay you rent? Or does she pay your current mortgage? If so, you are receiving rent from her which is taxable. Do you declare it to HMRC?

* similarly, you should be complying with all other legal landlord obligations.....

* does your current mortgage lender know
a) the property is not your main residence
b) your mum lives there
c) you are letting out the property ?

* the property is not your main residence. If/when you sell, you'll be liable for Captal Gains Tax

* as you have an existing mortgage, this might affect your ability to take out a new one with your boyfriend. An independant mortgage adviser should be able to help.

rebs

Does your mortgage provider know that you are not resident in your house?

00ec25

do you want to commit tax evasion or not?

Keep_pedalling

Get you mother to sell her inherited house, and buy out the share of the house she is living in.

System

G_M wrote: »

You cannot even sell/transfer after the new purchase and then reclaim the additional 3%, as your current property is not your main residence - it is your mum's main residence.

Really? So I will be charged 3% because I own it, then I can't reclaim it if I buy with the boyfriend and sell it within 3 years, because I don't live there??

rebs wrote: »

Does your mortgage provider know that you are not resident in your house?

Yes!

00ec25 wrote: »

do you want to commit tax evasion or not?

I kept my house for my mum to move into if she wanted to, when my Stepdad died. And now I will have to pay severe amounts of tax... so comments like this don't help my situ!

G_M

ConGirlRed wrote: »

Really? So I will be charged 3% because I own it, then I can't reclaim it if I buy with the boyfriend and sell it within 3 years, because I don't live there??

You can only reclaim the 3% SDLT if you have replaced your main residence with a new main residence

Yes!
Good.

I kept my house for my mum to move into if she wanted to, when my Stepdad died. And now I will have to pay severe amounts of tax... so comments like this don't help my situ!

Whether the comments 'help' or not depends on whether they provide you wth useful information.

In this case, sadly, it is useful for you to be made aware of tax obligations that had perhaps not occcurred to you.

es5595

Is your boyfriend able to buy your new house in his own right? If so, he could buy it alone, and then once its all gone through add you to the deeds, and when he remortgages, put you both on the mortgage then. It's pretty much the only way around, and only works if he can get the house in his own right anyway.

Keep_pedalling

ConGirlRed wrote: »

Really? So I will be charged 3% because I own it, then I can't reclaim it if I buy with the boyfriend and sell it within 3 years, because I don't live there??


Yes!


I kept my house for my mum to move into if she wanted to, when my Stepdad died. And now I will have to pay severe amounts of tax... so comments like this don't help my situ!

Keeping the house for your mother is fine, however she also owns a house outright, and sounds better off than you, so maybe it is time to return the favour.

G_M

es5595 wrote: »

Is your boyfriend able to buy your new house in his own right? If so, he could buy it alone, and then once its all gone through add you to the deeds,

1) adding a name to the Title (deeds) would require the consent of his mortgage lender
2) it would also trigger the additional SDLT

Pixie5740

Get married and move in with your boyfriend/husband. Then sell the property he owns and then buy a new home together.