Looking to buy a house together but will my buy to let effect us?

wadz82

Hi all,
My wife and I are looking to move out of my parents home and buy a property with equal contribution (50% each). We have a mortgage promise with Halifax but the mortgage advisor flagged up that as I already have a buy to let property we may have to pay a higher rate of tax.
The property was brought in 2007 and initially on a residential mortgage but subsequently changed to buy to let when my plans of moving in did not happen. I have never lived at the property and it has been on a buy to let mortgage for the majority of time.
Can anyone confirm whether we would have to pay the higher rate and also if we would be except from the current Stamp Duty holiday?
For info my wife has never owned a property before.

Thanks in advance!

K_S

@wadz82 Assuming England, you may still benefit from the current SDLT holiday on the standard rate but will still need to pay the 3% surcharge due to the background property.

wadz82

K_S said:

@wadz82 Assuming England, you may still benefit from the current SDLT holiday on the standard rate but will still need to pay the 3% surcharge due to the background property.

Thanks for the reply. Yes I'm in England.
I think with the expiry being late June might miss out on it though?
The properties are going so quick we cannot even get a viewing on the properties that are suitable for us

Windofchange

wadz82 said:

Hi all,
My wife and I are looking to move out of my parents home and buy a property with equal contribution (50% each). We have a mortgage promise with Halifax but the mortgage advisor flagged up that as I already have a buy to let property we may have to pay a higher rate of tax.
The property was brought in 2007 and initially on a residential mortgage but subsequently changed to buy to let when my plans of moving in did not happen. I have never lived at the property and it has been on a buy to let mortgage for the majority of time.
Can anyone confirm whether we would have to pay the higher rate and also if we would be except from the current Stamp Duty holiday?
For info my wife has never owned a property before.

Thanks in advance!

If on completion of your new property, you will own two houses, then you will be liable for the increased SDLT. We had this last year to the letter as my other half owns a BTL, and before the stamp duty holiday luckily came in and saved us many thousands of pounds, we would have been liable for stamp duty plus the 3% surcharge. It doesn't matter if you have never lived there, your wife has never owned a property before etc etc. 

wadz82

Thanks for the reply. We will factor the additional tax when looking for properties which means our price range will now be lower unfortunately