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    • crisp
    • By crisp 5th Oct 17, 8:08 AM
    • 406Posts
    • 55Thanks
    crisp
    Residential or commercial purchase and SDLT
    • #1
    • 5th Oct 17, 8:08 AM
    Residential or commercial purchase and SDLT 5th Oct 17 at 8:08 AM
    We viewed a property which has 4 floors, each about 400 sq ft. Only the upper floor is being used as residential and the other 3 floor are used as an office.

    It has planning to change into all residential if required.

    Our own home will be sold but we will need to keep it until our new home is habitual which means we will have to pay the 3% surcharge.

    Is this a residential or commercial purchase for the purpose of stamp duty?

    For some reason I was thinking there there a SDLT scale for residential and one for commercial. Is this correct?
Page 1
    • davidmcn
    • By davidmcn 5th Oct 17, 8:25 AM
    • 7,837 Posts
    • 8,019 Thanks
    davidmcn
    • #2
    • 5th Oct 17, 8:25 AM
    • #2
    • 5th Oct 17, 8:25 AM
    The rates are on HMRC's website.

    I would say it's the commercial rate as you're buying it while it's still in mixed use. Should be cheaper for you too as you avoid the 3% surcharge.
    • Ozzuk
    • By Ozzuk 5th Oct 17, 8:29 AM
    • 1,348 Posts
    • 1,977 Thanks
    Ozzuk
    • #3
    • 5th Oct 17, 8:29 AM
    • #3
    • 5th Oct 17, 8:29 AM
    You may avoid the charge but typically commercial properties are more expensive to fund than residential, 50% ltv is common as are higher arrangement fees.

    Not a problem if you're a cash buyer of course.
    • anselld
    • By anselld 5th Oct 17, 8:30 AM
    • 5,762 Posts
    • 5,444 Thanks
    anselld
    • #4
    • 5th Oct 17, 8:30 AM
    • #4
    • 5th Oct 17, 8:30 AM
    Yes commercial rates for mixed use, no surcharge.

    Be careful about the residential conversion if that is your plan. Planning permission is not necessarily the difficult bit. Building regs approval for such a conversion can be prohibitively expensive since you need to meet current standards within an old shell.
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