Complicated scenario

TigerFoot

Hi

I am living with my partner in his home since Sept. Before that i lived in my parents home as their carer from 2011. I was divorced at that point and used the proceeds towards a buy to let where i have never lived.

If i buy a home with my partner we would be moving from our main residence to another main resdence not aquiring an additional are we liable for the higher stamp duty. Any thoughts please?

saajan_12

Need more specific and clear information.

1. Are you married to current partner?
2. Do you still own the marital home with ex and would you keep it?
3. Do you still own the buy to let and would you keep it?

mlz1413

I have broken your post down to ask questions about each bit.

1 I am living with my partner in his home since Sept.

1 assuming this is his home. He has mortgage and bills in his name only.

2 Before that i lived in my parents home as their carer from 2011.

2 assuming parents owned and paid all bills. Then it was sold/ handed back to landlord and you have some money from parents estate.

3 I was divorced at that point and used the proceeds towards a buy to let where i have never lived.

3 assuming no property with ex now. Only this B2L with little or no mortgage and no bills in your name. Also assuming you intend to keep.

4 If i buy a home with my partner we would be moving from our main residence to another

4 I think you mean his home, but will depend on your answer to point 1. Are you on the council tax there?

5 not aquiring an additional property.

5 he isn't acquiring an additional property but you are if you keep your B2L.

6 are we liable for the higher stamp duty. Any thoughts please?

6 will new home be jointly financed? Will it be a 50/50 split? What is your ling term intention for your B2L?

TigerFoot

So both elderly parents died last summer. Not married to partner but prob will.

No marital home. Complete split in 2010. Bought buy to let with proceeds of divorce. Never lived there moved to parents with my kids. Kids left parents died, sisters wanted money so parents house sold. Used funds from buy to let whilst carering for my parents as it was an unpaid role. I am not yet retired so no state pension yet.

Intend to keep buy to let but improve on our home.

Not sure where to seek advice, never saw this potential inflated expence and solicitor not sure.

Thanks for any thoughts

TigerFoot

I am on the council tax at his house he no longer gets single person reduction.

I would be contributing some to the new home but he would be contributing more.

Intend to keep my b2l so i can contribute towards household expenses

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/comment/81857381#Comment_81857381

Assuming the property you’re buying is in England where the applicable tax is SDLT then the higher rate of SDLT will be due providing the BTL you own is worth £40,000 or more.

You won’t meet the condition of replacing your main residence because you don’t own it and you aren’t married to your partner.

If you were married it wouldn’t matter that the property is solely in your partner’s name.

Bigphil1474

Could the OP and their partner become joint owners in their current residence, and then sell it as their main residence and avoid the additional SDLT? Would a small percentage gift of ownership cover that?

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81857737#Comment_81857737

I would think so, maybe @SDLT_Geek could confirm, another option would be to get married as then all properties are considered jointly owned.

user1977

https://forums.moneysavingexpert.com/discussion/comment/81857737#Comment_81857737

Yes but may be complicated if there's an existing mortgage, also if selling immediately there's the "six month rule" (from the last change of ownership) which may complicate a sale .

gwynlas

If you are buying together prior to marriage then please ensure you are protected with a deed of trust regarding deposit and split of mortgage incase of anything befalling either of you prior to committment.

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/comment/81857381#Comment_81857381

There could be an answer to the problem with the extra 5% SDLT (which arises because you are keeping the let property) in the way in which your parents property was handled before it was sold. You had lived in it as your only residence for many years and it has been sold recently (you say your sister got some of the money). If part of the ownership vested in you personally (rather than in the capacity of personal representative of one of your parents) then the sale of that property could bring you within the "replacement" rules for the 5% surcharge.

The questions is likely to be whether:

(a) The house was sold by personal representatives in the administration of the estate and then money given to the beneficiaries (bad) or

(b) An interest in the property first passed to you, for example by an assent or an appropriation (good).

To find out which applies, you might well need to speak to anyone who helped in the administration of your parents' estates.