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First Time Buyer - Need clarification
Kiansh
Posts: 4 Newbie
Hello Everyone,
Need a quick help from the expert community.
I am an Indian national and in UK from past 5 years. I am planning to buy a House (425K) in UK as sole owner, and having an overseas Flat of 30K in home country on my name. I read the threads and got to know I will not be considered as First Time buyer. If I decide to gift the overseas flat to my spouse - will I be considered as First time buyer and get an exemption from SDLT rates (till 425K - 0%) - Please help.
Need a quick help from the expert community.
I am an Indian national and in UK from past 5 years. I am planning to buy a House (425K) in UK as sole owner, and having an overseas Flat of 30K in home country on my name. I read the threads and got to know I will not be considered as First Time buyer. If I decide to gift the overseas flat to my spouse - will I be considered as First time buyer and get an exemption from SDLT rates (till 425K - 0%) - Please help.
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Comments
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No, once you have previously acquired a property, you cannot become a first time buyer by giving it away.Kiansh said:Hello Everyone,
Need a quick help from the expert community.
I am an Indian national and in UK from past 5 years. I am planning to buy a House (425K) in UK as sole owner, and having an overseas Flat of 30K in home country on my name. I read the threads and got to know I will not be considered as First Time buyer. If I decide to gift the overseas flat to my spouse - will I be considered as First time buyer and get an exemption from SDLT rates (till 425K - 0%) - Please help.
Is your spouse a first time buyer? If so, could your spouse be the sole buyer of the house? There are lots of traps and difficulties with this, but could be worth considering. It would be important that:- Your spouse intends to live in the house as their only or main residence.
- You have no underlying share in the house.
- Your overseas flat is worth less than £40K at the time of her purchase of the house.
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Thank youSDLT_Geek - Sorry I forgot to mention (typo error), my overseas Flat is on my Name and spouse (Joint owners) and now I am thinking to make her as sole owner of overseas flat (No one is living in the Flat, it was just an investment and empty). And in UK, I will be the sole owner of new property while I will be living with my Spouse in UK.
No, once you have previously acquired a property, you cannot become a first time buyer by giving it away.Kiansh said:Hello Everyone,
Need a quick help from the expert community.
I am an Indian national and in UK from past 5 years. I am planning to buy a House (425K) in UK as sole owner, and having an overseas Flat of 30K in home country on my name. I read the threads and got to know I will not be considered as First Time buyer. If I decide to gift the overseas flat to my spouse - will I be considered as First time buyer and get an exemption from SDLT rates (till 425K - 0%) - Please help.
Is your spouse a first time buyer? If so, could your spouse be the sole buyer of the house? There are lots of traps and difficulties with this, but could be worth considering. It would be important that:- Your spouse intends to live in the house as their only or main residence.
- You have no underlying share in the house.
- Your overseas flat is worth less than £40K at the time of her purchase of the house.
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Then neither of you are first time buyers.Kiansh said:Thank youSDLT_Geek - Sorry I forgot to mention (typo error), my overseas Flat is on my Name and spouse (Joint owners) and now I am thinking to make her as sole owner of overseas flat (No one is living in the Flat, it was just an investment and empty). And in UK, I will be the sole owner of new property while I will be living with my Spouse in UK.
No, once you have previously acquired a property, you cannot become a first time buyer by giving it away.Kiansh said:Hello Everyone,
Need a quick help from the expert community.
I am an Indian national and in UK from past 5 years. I am planning to buy a House (425K) in UK as sole owner, and having an overseas Flat of 30K in home country on my name. I read the threads and got to know I will not be considered as First Time buyer. If I decide to gift the overseas flat to my spouse - will I be considered as First time buyer and get an exemption from SDLT rates (till 425K - 0%) - Please help.
Is your spouse a first time buyer? If so, could your spouse be the sole buyer of the house? There are lots of traps and difficulties with this, but could be worth considering. It would be important that:- Your spouse intends to live in the house as their only or main residence.
- You have no underlying share in the house.
- Your overseas flat is worth less than £40K at the time of her purchase of the house.
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okay - I read some posts and it was mentioned that if you sale or gift your overseas property, then you can be treated as First time buyer in UK. May be it was wrong information?marcia_ said:
Then neither of you are first time buyers.Kiansh said:Thank youSDLT_Geek - Sorry I forgot to mention (typo error), my overseas Flat is on my Name and spouse (Joint owners) and now I am thinking to make her as sole owner of overseas flat (No one is living in the Flat, it was just an investment and empty). And in UK, I will be the sole owner of new property while I will be living with my Spouse in UK.
No, once you have previously acquired a property, you cannot become a first time buyer by giving it away.Kiansh said:Hello Everyone,
Need a quick help from the expert community.
I am an Indian national and in UK from past 5 years. I am planning to buy a House (425K) in UK as sole owner, and having an overseas Flat of 30K in home country on my name. I read the threads and got to know I will not be considered as First Time buyer. If I decide to gift the overseas flat to my spouse - will I be considered as First time buyer and get an exemption from SDLT rates (till 425K - 0%) - Please help.
Is your spouse a first time buyer? If so, could your spouse be the sole buyer of the house? There are lots of traps and difficulties with this, but could be worth considering. It would be important that:- Your spouse intends to live in the house as their only or main residence.
- You have no underlying share in the house.
- Your overseas flat is worth less than £40K at the time of her purchase of the house.
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Yes, it was wrong. If you keep the other property you will pay SDLT + second property surcharge. If you sell, you will pay the normal SDLT only.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.2
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Thank you so much everyone for clarifying and help.kingstreet said:Yes, it was wrong. If you keep the other property you will pay SDLT + second property surcharge. If you sell, you will pay the normal SDLT only.0 -
Just an extra data point. I was asked by my solicitors if I had ever owned a property in any country in the world. For the above stated reasons.0
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The flat in India is below the £40k threshold so the higher rate of SDLT won’t apply in this case.kingstreet said:Yes, it was wrong. If you keep the other property you will pay SDLT + second property surcharge. If you sell, you will pay the normal SDLT only.0 -
Apologies. I've just re-read the opening post. Due to the value of the overseas property you won't be subject to the SDLT second property surcharge as it is worth less than £40,000. So keep it or sell/transfer it and you will still pay the same/normal SDLT.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.2
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