Will I pay stamp duty?

Dale_stacy89

Hi Everyone,

Struggling to find a definitive answer online with conflicting reports. So our family are currently serving in the army and we purchased a flat in our home town to have our own space when we visit. We are relocated different ends of the country but would like to purchase a property where we’re currently based. Unfortunately our flat is in negative equity (bought in 2008) so unable to sell just yet. When we buy a property here will we pay a higher rate of stamp duty even though it will be our permanent home or will we pay the rate of stamp duty on the flat we already own because that will be the second property.

Thanks.

davidmcn

You're buying an additional property so the higher rate will apply. Doesn't matter what you're using it (or the first property) for.

grumiofoundation

Surely you can sell property A you just will have to settle any outstanding balance (will the outstanding balance be < 3% of property B?) 

hazyjo

Was it an interest only mortgage then? Surely, if repayment, it won't be in negative equity after that long and after paying 13+ years off the mortgage. Are prices really that bad? 

Or do you just mean it's worth less than you paid?