Stamp duty advice when owning 2 properties

Noodles_33

I wondered if someone can help me. My partner and I both own separate flats and are hoping to buy a family home together. I am currently pregnant and live in his property, my flat is empty and has been on the market since February & unfortunately hasn’t sold. I’m thinking about putting it on a consent to lease until the market improves. We then plan to sell his flat and buy a house in both our names. As I will be classed as owning 2 properties, will I have to pay  the additional 5% stamp duty? If I were to marry my partner would this change things, as he would only own one property. 

Mark_d

My understanding is that the higher rate of stamp duty is payable if any of the purchasers owns another property.  Maybe your partner can buy the house in his sole name, after selling his flat?

saajan_12

Noodles_33 said:

I wondered if someone can help me. My partner and I both own separate flats and are hoping to buy a family home together. I am currently pregnant and live in his property, my flat is empty and has been on the market since February & unfortunately hasn’t sold. I’m thinking about putting it on a consent to lease until the market improves. We then plan to sell his flat and buy a house in both our names. As I will be classed as owning 2 properties, will I have to pay  the additional 5% stamp duty? 

Yes being unmarried, you're effectively buying an additional property so the additional 5% would apply to the full purchase cost. When did you move out of your flat? If you sell your flat within 3 years, then you could claim back the 5% at that point. 

Noodles_33 said:

 If I were to marry my partner would this change things, as he would only own one property. 

If you were to marry now before buying the new house, then you're treated as selling partners flat as a unit and buying the new property as a unit. So as a unit you are not increasing the number of properties so there's no additional stamp duty. 

silvercar

You don’t even need to get married, if he puts his current flat where you are both living into joint names, then you would not be increasing the number of properties you own.

Noodles_33

saajan_12 said:

Noodles_33 said:

I wondered if someone can help me. My partner and I both own separate flats and are hoping to buy a family home together. I am currently pregnant and live in his property, my flat is empty and has been on the market since February & unfortunately hasn’t sold. I’m thinking about putting it on a consent to lease until the market improves. We then plan to sell his flat and buy a house in both our names. As I will be classed as owning 2 properties, will I have to pay  the additional 5% stamp duty? 

Yes being unmarried, you're effectively buying an additional property so the additional 5% would apply to the full purchase cost. When did you move out of your flat? If you sell your flat within 3 years, then you could claim back the 5% at that point. 

Noodles_33 said:

 If I were to marry my partner would this change things, as he would only own one property. 

If you were to marry now before buying the new house, then you're treated as selling partners flat as a unit and buying the new property as a unit. So as a unit you are not increasing the number of properties so there's no additional stamp duty. 

Thank you for your reply, I think marriage would be the best solution as we had planned to marry eventually anyway. It’s an additional £20k on top of the £10k in stamp duty otherwise which is pretty extortionate. 

Noodles_33

silvercar said:

You don’t even need to get married, if he puts his current flat where you are both living into joint names, then you would not be increasing the number of properties you own.

Thanks, that’s another great idea. 

Bookworm225

Noodles_33 said:

silvercar said:

You don’t even need to get married, if he puts his current flat where you are both living into joint names, then you would not be increasing the number of properties you own.

Thanks, that’s another great idea. 

just so you understand
being made a joint owner is one part of the equation, but what actually secures the "unit" not increasing its number of properties is the fact they you (unmarried) live in the flat as well, therefore both (unmarried) owners are "replacing" their main homes when they sell the flat 

if you lived in your flat then you would fail the test even if you co-owned his flat