We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Stamp Duty
kerfuffle_2
Posts: 18 Forumite
Hi there. I currently live with my partner in the flat she owns in London. I own a house in Manchester that I rent out, and had been living in rental accommodation in the 3 years before we i moved in with her in August 2020. If we buy a house, and I retain my property in Manchester, I would have to pay the Stamp Duty surcharge. We are expecting a baby soon but would like to buy in 6 - 12 months. If I was added as a co-owner of the flat in London, and therefore made it officially our 'main residence', would that make us exempt from the surcharge when we do buy? (we want to keep the rental property in my name).
Any advice appreciated! Thanks!
S
Any advice appreciated! Thanks!
S
0
Comments
-
Is the partner's flat mortgaged? If so, you cannot be made a part-owner without the lender's consent, which would normally mean remortgaging with both of you named as borrowers.No free lunch, and no free laptop
0 -
It is mortgaged, that's a really helpful point - thank you. If we did remortgage, adding me as a borrower, would that result in exemption from the surcharge?0
-
I doubt that would wash, given that "There needs to be a permanence and expectation of continuation to the occupation to establish it as a main residence", and you're doing it purely as a tax avoidance technique with the intention of immediately moving out.0
-
OP, nothing wrong with your plan in principle. It will require a transfer of equity and you going on the mortgage.
Since the property is mortgaged there may be an SDLT bill to pay when you do a transfer of equity. This is will at the 'higher' rate as you own a background property.
0 -
You’d trigger the higher rate of SDLT when remortgaging because you already own the Manchester property.kerfuffle_2 said:It is mortgaged, that's a really helpful point - thank you. If we did remortgage, adding me as a borrower, would that result in exemption from the surcharge?
Getting married would make selling the current London property count as replacing your main residence for the purposes of SDLT when buying your next home together.0 -
Previous thread on the subject...
https://forums.moneysavingexpert.com/discussion/6264291/stamp-duty-query
1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.6K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.9K Spending & Discounts
- 244.5K Work, Benefits & Business
- 599.8K Mortgages, Homes & Bills
- 177.2K Life & Family
- 258.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards