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Stamp Duty Confusion

sianmary497
sianmary497 Posts: 1 Newbie
in House buying, renting & selling
Hi there
Any help with this or advice on who to go to would be most appreciated.
I own a property in Sheen that I used to live in and then I started renting a year and 3 months ago. I have been renting with my partner Ben for the past year and 3 months and now we have found a house we would like to buy together.
He is a first time buyer and I rent my previous home out.

I calculated that the stamp duty is £25,200 on a property that is worth £440,000. Our mortgage advisor has said that is correct but a potential solicitor we have asked for a quote has stated that it would be £12,000 for stamp duty because I am buying a place that is my new main residence.

Any advice or clarification on the rules would be helpful. Thanks
Jane
«1

Comments

  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    I think the solicitor has it wrong.
  • Tugaville
    Tugaville Posts: 16 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    The £12,000 is the correct amount due on the property you are going to buy.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Try a different solicitor?
  • Tugaville
    Tugaville Posts: 16 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    I used the stamp duty calculator and that was the figure it gave.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 20 March 2019 at 12:38PM
    Tugaville wrote: »
    I used the stamp duty calculator and that was the figure it gave.
    Only if you give it wrong information - the OP is buying an additional residential property and not replacing (i.e. selling) their current main residence.
  • Spidernick
    Spidernick Posts: 3,803 Forumite
    1,000 Posts Combo Breaker
    sianmary497 wrote: »
    Hi there
    Any help with this or advice on who to go to would be most appreciated.
    I own a property in Sheen that I used to live in and then I started renting a year and 3 months ago. I have been renting with my partner Ben for the past year and 3 months and now we have found a house we would like to buy together.
    He is a first time buyer and I rent my previous home out.

    I calculated that the stamp duty is £25,200 on a property that is worth £440,000. Our mortgage advisor has said that is correct but a potential solicitor we have asked for a quote has stated that it would be £12,000 for stamp duty because I am buying a place that is my new main residence.

    Any advice or clarification on the rules would be helpful. Thanks
    Jane

    The bit in bold is the crucial bit and you therefore pay the higher rate of £25,200 for a second property. Any solicitor worth his or her salt would know this, so I would give them a wide berth personally (unless you haven't divulged this fact to them).
    'I want to die peacefully in my sleep, like my father. Not screaming and terrified like his passengers.' (Bob Monkhouse).

    Sky? Believe in better.

    Note: win, draw or lose (not 'loose' - opposite of tight!)
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Tugaville wrote: »
    I used the stamp duty calculator and that was the figure it gave.

    You used it wrongly.
    OP either you misinformed the "potential solicitor" or if not, they are wrong on a very very basic piece of understanding and should be given a very wide berth.
  • noh
    noh Posts: 5,827 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Tugaville wrote: »
    I used the stamp duty calculator and that was the figure it gave.

    If you feed the calculator with the correct info ie the OP is buying an additional property the answer is £25200.

    https://www.moneyadviceservice.org.uk/en/tools/house-buying/stamp-duty-calculator
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    sianmary497 wrote: »
    ...
    I own a property in Sheen that I used to live in and then I started renting a year and 3 months ago.

    .....

    He is a first time buyer and I rent my previous home out.
    You are buying a 2nd property.


    You are not replacing (selling) your main residence.


    You therefore pay the additional 3% SDLT.
  • Tugaville
    Tugaville Posts: 16 Forumite
    Tenth Anniversary 10 Posts Combo Breaker
    I stand corrected.
This discussion has been closed.
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