We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
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!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Mortgage and Stamp Duty Questions
Robster88
Posts: 124 Forumite
Hello,
I'm hoping someone will be able to advise on the following two questions. I have looked online but as yet haven't been able to find a clear answer.
Firstly - I own a house that I rent out. I do not have a mortgage on this property. I would like to borrow money against the property. Would that be classed as a buy to let mortgage, even though I wouldn't be using the mortgage to buy a property to let, but just release equity from a property I'm currently renting out?
Secondly, I have a question about stamp duty. If I sold my main residence, but not my rental property, (which would still be lived in my the tenants), and then rented somewhere to live in, and then bought a new main residence say 6 months later or so, would I be liable to pay the additional stamp duty? The .gov website says 'You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold' but I'm not sure if there is a limit to how long before you purchase your new main residence and selling your previous one can be?
I know you have 36 months to sell your previous main home after buying a new main residence, and you can claim the extra stamp duty back, but I'm not sure how it works the other way round (selling your main home before buying a new home) when you own another property but that isn't your home (as is lived in by tenants)..
If anyone can help with either question it would be much appreciated.
Cheers
I'm hoping someone will be able to advise on the following two questions. I have looked online but as yet haven't been able to find a clear answer.
Firstly - I own a house that I rent out. I do not have a mortgage on this property. I would like to borrow money against the property. Would that be classed as a buy to let mortgage, even though I wouldn't be using the mortgage to buy a property to let, but just release equity from a property I'm currently renting out?
Secondly, I have a question about stamp duty. If I sold my main residence, but not my rental property, (which would still be lived in my the tenants), and then rented somewhere to live in, and then bought a new main residence say 6 months later or so, would I be liable to pay the additional stamp duty? The .gov website says 'You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold' but I'm not sure if there is a limit to how long before you purchase your new main residence and selling your previous one can be?
I know you have 36 months to sell your previous main home after buying a new main residence, and you can claim the extra stamp duty back, but I'm not sure how it works the other way round (selling your main home before buying a new home) when you own another property but that isn't your home (as is lived in by tenants)..
If anyone can help with either question it would be much appreciated.
Cheers
0
Comments
-
1) Yes
2) No, provided you buy the replacement main residence within 3 years3
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards