How can I stagger payment for second Home Stamp Duty?

DCookie122

Hello MoneySaving Experts,

I currently have a property which is worth £330k in NW London. I am looking for buy a buy to let property worth £340k as an investment. I am a single person with a wage of £44k per year before tax.

I have £85k saved up (£35k savings and £50k release equity for my home). The problem is the stamp duty on which I will need to pay £17,200. Is there anyway I can stagger the payments? I do not have anyone in the family who can help and I don't want to miss out on an opportunity to get a second home.

Thank you for the help
David

[Deleted User]

DCookie122 said:

Hello MoneySaving Experts,

I currently have a property which is worth £330k in NW London. I am looking for buy a buy to let property worth £340k as an investment. I am a single person with a wage of £44k per year before tax.

I have £85k saved up (£35k savings and £50k release equity for my home). The problem is the stamp duty on which I will need to pay £17,200. Is there anyway I can stagger the payments? I do not have anyone in the family who can help and I don't want to miss out on an opportunity to get a second home.

Thank you for the help
David

If you’re buying with a mortgage, which I presume you are as you only have £85,000, then you will need the SDLT to be paid on completion. It will be a condition of your mortgage. 

grumiofoundation

You are charged interest and penalties (~£300) for not paying. I don't believe you are allowed to stagger it.

But I think that is moot as the issue you will face is if you are buying with a mortgage your solicitor will want to funds for SDLT before they complete (edit: cross posed with comment above). 


Similar question asked a while ago (I will repeat the same comment I made in that thread - if you can't afford the stamp duty can you really 'afford' the property, or to start a residential letting business. How long will you be able to survive if your tenants don't pay rent?). 
https://forums.moneysavingexpert.com/discussion/6270549/can-you-delay-stamp-duty-payment/p1

Crashy_Time

grumiofoundation said:

You are charged interest and penalties (~£300) for not paying. I don't believe you are allowed to stagger it.

But I think that is moot as the issue you will face is if you are buying with a mortgage your solicitor will want to funds for SDLT before they complete (edit: cross posed with comment above). 


Similar question asked a while ago (I will repeat the same comment I made in that thread - if you can't afford the stamp duty can you really 'afford' the property, or to start a residential letting business. How long will you be able to survive if your tenants don't pay rent?). 
https://forums.moneysavingexpert.com/discussion/6270549/can-you-delay-stamp-duty-payment/p1

Excellent point, the OP isn`t ready to be a landlord at this stage.

AdrianC

90% of the cost of this putative let property is going to be borrowed - either on a BtL or via your home's mortgage.

Will this lettings business be profitable, once the interest on that substantial borrowing is covered?
How long will the post-tax profit take to cover the purchase costs, including SDLT?