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First Time Buyer Commercial Conversion


Can anyone confirm if i am classed as a first time buyer or not.
I have bought a commercial property which was later converted converted to a residential buy to let.
I bought it using commercial bridging finance and remortgaged to a residential mortgage a year later.
Comments
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You have previously owned a residential property hence I would not class you as a first time buyer
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Yes, I think the test is whether you currently own a residential property, so the fact it was treated as non-residential for stamp duty purposes when you bought is irrelevant.1
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MandemOnDiBlock said:Hello Good People,
Can anyone confirm if i am classed as a first time buyer or not.
I have bought a commercial property which was later converted converted to a residential buy to let.
I bought it using commercial bridging finance and remortgaged to a residential mortgage a year later.
If so, then the key issue is whether the you will still own your conversion when you buy the property. If you will still own it, the extra 5% SDLT for additional properties will apply to your purchase and there is no question of first time buyers' relief applying.
But if you sell / dispose of the conversion first, then oddly first time buyer's relief can still apply on the basis that you have never "acquired" a residential property before. (The SDLT test is framed in terms of whether someone has ever acquired a residential property, not on whether they have ever owned a residential property.)2 -
SDLT_Geek said:MandemOnDiBlock said:Hello Good People,
Can anyone confirm if i am classed as a first time buyer or not.
I have bought a commercial property which was later converted converted to a residential buy to let.
I bought it using commercial bridging finance and remortgaged to a residential mortgage a year later.
If so, then the key issue is whether the you will still own your conversion when you buy the property. If you will still own it, the extra 5% SDLT for additional properties will apply to your purchase and there is no question of first time buyers' relief applying.
But if you sell / dispose of the conversion first, then oddly first time buyer's relief can still apply on the basis that you have never "acquired" a residential property before. (The SDLT test is framed in terms of whether someone has ever acquired a residential property, not on whether they have ever owned a residential property.)0 -
It's going to hard to make an argument that you owned a residential property without acquiring it, with a straight face though.
You could argue that you bought a commercial property, but you acquired a residential property when it was converted.
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Herzlos said:It's going to hard to make an argument that you owned a residential property without acquiring it, with a straight face though.
You could argue that you bought a commercial property, but you acquired a residential property when it was converted.
I agree that it sounds rather too good to be true, but I stand by this one!0 -
It being remortaged with a residentual mortgage later "ought it using commercial bridging finance and remortgaged to a residential mortgage a year later." implies that the OP still has ownership of the property.0
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Herzlos said:It being remortaged with a residentual mortgage later "ought it using commercial bridging finance and remortgaged to a residential mortgage a year later." implies that the OP still has ownership of the property.
The OP gives very little information. I am speculating (not too wildly I hope) that the plan might be to sell the conversion and buy another residential property.0 -
SDLT_Geek said:Herzlos said:It being remortaged with a residentual mortgage later "ought it using commercial bridging finance and remortgaged to a residential mortgage a year later." implies that the OP still has ownership of the property.
The OP gives very little information. I am speculating (not too wildly I hope) that the plan might be to sell the conversion and buy another residential property.1 -
SDLT_Geek said:Herzlos said:It's going to hard to make an argument that you owned a residential property without acquiring it, with a straight face though.
You could argue that you bought a commercial property, but you acquired a residential property when it was converted.
I agree that it sounds rather too good to be true, but I stand by this one!1
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