Stamp duty confusion

SDLT_Geek

Poppyka said:

@SDLT_Geek nope  none at all the house we’re buying together will be my first house purchase 

So long as your partner has lived in the flat belonging to him and his parents as his only or main residence, then the 3% surcharge payable by you and your partner should be recoverable if the flat is sold within three years.
It is just you and your partner buying the new house?  His parents are not putting in money and so having a share?

grumiofoundation

Poppyka said:

@SDLT_Geek nope  none at all the house we’re buying together will be my first house purchase 

Then it sounds like (and I’m sure the more knowledgable SDLT_Geek will be along to confirm) you would pay the 3% but would be able to reclaim when your partner sells flat (within 3 years) you are currently living in - I.e replaces his main residence.

Edit: as suspected see above for more detailed answer - blame GWR for (2nd time) cross posting...

Poppyka

@SDLT_Geek and @grumiofoundation
that’s correct definitely his only main residence. His parents won’t have a share in our new house it’ll just be the two of us. 

Thank you all so much it makes it easier to have things explained in simple language (well for me anyway!) 

AdrianC

So the accurate situation is...

AdrianC said:

You (jointly) Your partner owns A and you both live in it currently.
Your partner owns B and does not live in it.
You (jointly) are buying C, to live in.

Right?

You will pay +3%. You (jointly) Your partner is going from two to three properties.

If they sell A within 3yrs of buying C, they can reclaim the +3%, because they have replaced their previous main residence.

This is unchanged as a result.

saajan_12

Poppyka said:

Thank you all so much that’s really helpful! We’re hoping we can sell our flat within 3 years so can claim the stamp duty back. 

Note you'd still end up paying the 'normal' stamp duty. The refund would only be the additional 3% part. 

Poppyka

Thanks for that @saajan_12 we’ve factored that in we’ll be glad to have something back. 

We’re at the enquiry stage of our purchase and the solicitors aren’t being overly optimistic that we can complete before 30th June. We’ve had all searches back we’ve even signed off the mortgage deeds. 

The vendors solicitors sent their enquiries back last week so we’ve got fingers crossed they’ll be satisfactory so we can get things closer to exchange and completion! (Ever the optimist)