Own one property outright - would like to buy second to live in

forumuser81

silvercar said:

forumuser81 said:

Is an option to transfer the deeds of the house back to my parents, which would then mean I’m classed as a first time buyer when it comes to buying my own flat?

You will be buying a home that increases the number of properties owned, so extra SDLT to pay, transferring it back to parents would mean you avoided extra SDLT.

However, you are not a first time buyer, having previously owned a home, so that may have implications for the amount of SDLT depending on value. I think there are a couple of lenders who may allow you a FTB mortgage in these circumstances.

Ok thanks for explaining

Bookworm105

in summary
- parents property remains within their estate for IHT purposes at market value at date of transfer (gift) less o/s mortgage at that time as it is a "GWR" - gift with reservation (of benefit)
- you own a property so do not qualify for FTB relief re SDLT (even if you cease to own it)
- you continue to own a property you do not live in, so purchase of any further properties would trigger additional rate SDLT on that purchase 
- you own a property you do not live in so would be liable to CGT if it is sold or gifted back to parents 
- you own a mortgage free property so potentially some, but by no means all, lenders may treat you as entitled to FTB mortgage offers 

HouseMartin567

And todays Budget has raised the extra SDLT to 5% (up from 3%).

noitsnotme

HouseMartin567 said:

And todays Budget has raised the extra SDLT to 5% (up from 3%).

From tomorrow too so no chance to beat that change.