Selling two properties to buy one… advice on timing

glenroyfirst

Apologies for the long first post but appreciate some mortgage and stamp duty house on a property buying timing conundrum.

I currently own a three bedroom house and my partner owns a flat - these are in different locations in the UK and we split our time between them. We are looking to move full time to the area with a flat, so the plan is to sell both properties and buy a house. We are selling my property first as this has enough equity to make the house in the new area affordable on my salary alone, and then we can use the flat equity to either reduce mortgage or do any work required. All good so far…

We realise that if we purchase the new property in joint names prior to the flat being sold we will have to pay the additional stamp duty - but can reclaim this when we sell the flat (3 year rule will not be an issue).

Challenge - my partner has recently been made redundant - therefore with our existing plan if we apply for the joint mortgage prior to selling the flat (as we do not want this to be in a chain) and this is included as an additional debt (even though out intention is to sell) this will create affordability issues. 

Potential only option that I can see - hence raising to get views and advice from this audience as I have been a stalker for some time! - is that we initially purchase the new property in just my name - and then add my partner to the mortgage and deeds post sale of the flat (I believe at this stage we will need to pay incremental stamp duty on 50% of the outstanding mortgage?).

appreciate advice / alternative options! Thanks in advance 

Doozergirl

If you have a mortgage on the new property in just your name, but want to put it into both at a later date then it is effectively another purchase - you'll need to reapply for another mortgage for both of you, with all the fees that apply - early repayment charges etc.  

There isn't really an easy way to sell two and buy one property.  Just see which one sells first, move into the one left and make it part of the chain is what we've done in the past.   Not exactly fun either.  

glenroyfirst

That will be the issue then as we were hoping to get a 5 year fix… early redemption fees… (stamp duty was immaterial). Ouch.. looks like we will have to speed up marketing the flat and include in the chain 😭