Stamp Duty refund after March 2021

sahilsaid

I currently own a house which is in the market but have not received any offers yet. The mortgage on this property is almost finished.
The next home which I am thinking to purchase is valued at £285K approximately. I don't want to miss this house and therefore I am thiking to purchase this house as a second property while my first property is sold.
I did a mortgage affordability check and fortunately I can afford a large mortgage to purchase the second property without selling the first one however, this will mean I will be paying around £8550 in stamp duty. Now because of the stamp duty holiday I would be paying £0 if I went through normal chain and wait for the first property to sell which means risking the second property being snapped up by someone else.
I am hoping to sell my property soon but in worst case what would happen if I can't sell this house before March 2021 when the stamp duty holiday finishes. Will I still be able to claim the full refund of £8550 stamp duty?
Any other suggestions also welcome.

powerful_Rogue

As long as the first property is sold within 3 years, you can claim the stamp duty back.

https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties

hounsehunterftb

Yes as long as the old main residence is sold within 3 years from the date of purchase of your second home, any stamp duty paid should be refunded

sahilsaid

hounsehunterftb said:

Yes as long as the old main residence is sold within 3 years from the date of purchase of your second home, any stamp duty paid should be refunded

Thanks all for your reply. 
Yes I did read that about the 3 years rule. Was just confirming that since we have a stamp duty holiday right now will I be refunded based on the fact that when I purchased my second home (if it is before arch 2021) we had stamp duty holiday and therefore entire stamp duty should be refunded instead of refund based on normal stamp duty calculation?

davidmcn

sahilsaid said:

hounsehunterftb said:

Yes as long as the old main residence is sold within 3 years from the date of purchase of your second home, any stamp duty paid should be refunded

Yes I did read that about the 3 years rule. Was just confirming that since we have a stamp duty holiday right now will I be refunded based on the fact that when I purchased my second home (if it is before arch 2021) we had stamp duty holiday and therefore entire stamp duty should be refunded instead of refund based on normal stamp duty calculation?

No, you'd already have had the benefit of the stamp duty holiday on the standard rate element of your SDLT - the "holiday" doesn't affect the additional 3% at all.

sahilsaid

davidmcn said:

sahilsaid said:

hounsehunterftb said:

Yes as long as the old main residence is sold within 3 years from the date of purchase of your second home, any stamp duty paid should be refunded

Yes I did read that about the 3 years rule. Was just confirming that since we have a stamp duty holiday right now will I be refunded based on the fact that when I purchased my second home (if it is before arch 2021) we had stamp duty holiday and therefore entire stamp duty should be refunded instead of refund based on normal stamp duty calculation?

No, you'd already have had the benefit of the stamp duty holiday on the standard rate element of your SDLT - the "holiday" doesn't affect the additional 3% at all.

So does that mean waiting for my property to be sold and then purchase the new property in chain would be beneficial as I will not have to pay £8500 in stamp duty where as if I was to purchase new property as second home then I am £8500 worse off?

grumiofoundation

sahilsaid said:

davidmcn said:

sahilsaid said:

hounsehunterftb said:

Yes as long as the old main residence is sold within 3 years from the date of purchase of your second home, any stamp duty paid should be refunded

Yes I did read that about the 3 years rule. Was just confirming that since we have a stamp duty holiday right now will I be refunded based on the fact that when I purchased my second home (if it is before arch 2021) we had stamp duty holiday and therefore entire stamp duty should be refunded instead of refund based on normal stamp duty calculation?

No, you'd already have had the benefit of the stamp duty holiday on the standard rate element of your SDLT - the "holiday" doesn't affect the additional 3% at all.

So does that mean waiting for my property to be sold and then purchase the new property in chain would be beneficial as I will not have to pay £8500 in stamp duty where as if I was to purchase new property as second home then I am £8500 worse off?

No, the opposite.

As it stands you pay +3% only (£8550), which can be refunded if you sell the first property within 3 years (as was former residence).

So end up paying £0 in stamp duty.

if you wait to sell property A and buy after stamp duty holiday is over you won't pay the +3% but you will pay 'normal' stamp duty on the £255,000 house (£4250). 

sahilsaid

grumiofoundation said:

sahilsaid said:

davidmcn said:

sahilsaid said:

hounsehunterftb said:

Yes as long as the old main residence is sold within 3 years from the date of purchase of your second home, any stamp duty paid should be refunded

Yes I did read that about the 3 years rule. Was just confirming that since we have a stamp duty holiday right now will I be refunded based on the fact that when I purchased my second home (if it is before arch 2021) we had stamp duty holiday and therefore entire stamp duty should be refunded instead of refund based on normal stamp duty calculation?

No, you'd already have had the benefit of the stamp duty holiday on the standard rate element of your SDLT - the "holiday" doesn't affect the additional 3% at all.

So does that mean waiting for my property to be sold and then purchase the new property in chain would be beneficial as I will not have to pay £8500 in stamp duty where as if I was to purchase new property as second home then I am £8500 worse off?

No, the opposite.

As it stands you pay +3% only (£8550), which can be refunded if you sell the first property within 3 years (as was former residence).

So end up paying £0 in stamp duty.

if you wait to sell property A and buy after stamp duty holiday is over you won't pay the +3% but you will pay 'normal' stamp duty on the £255,000 house (£4250). 

Thank you. Makes sense now.