Stamp Duty 2nd Home

tfa

Hi
Some advice needed please regarding stamp duty.
I split with a partner 2 years ago, we tried to sell but the market was not good and we ended up having to rent it out. About 18 months later I had saved enough to buy a place with my new partner and proceeded. We had to pay the extra 3% duty as I still had the previous place, my partner had none. 6 months later the other property is now up for sale. My understanding is that if I sell within 3 years of buying we will get the money back. The market is still poor and the flat dropped in value. My Ex wants more than the value of the property because they want to buy elsewhere, this means selling is very difficult, so i have said they can have the first 7k and anything above we split, there is very little equity in the home.!
My main question really is if it does not sell, I could offer them 7k to go and me and my new partner take it on. Where would this sit on stamp duty, would i suddenly!be buying a second home as one of us owns just one home (Where we live)? thus playing the fine on two places? Would my new become my primary home and i get a rebate?
Any thoughts?

davidmcn

It would be at 2nd home rates but only on the amount you're paying, not the whole value of the property.

Cscott139

would you be looking to keep it as a rental property? If so you could apply for a buy to let mortgage and just transfer your ex off and keep it in your name only. You wouldn't get your additional stamp duty back from your recent purchase but there would be nothing to pay on this one. If you definitely want/need to add your new partner then there could be extra stamp duty to pay.

SDLT_Geek

The SDLT you pay (at higher rates) would not just be on the sum you pay, but also on a proportion of the outstanding mortgage debt. If the property is owned 50 / 50 it would likely be on £7k and half of the mortgage debt.