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    • Marcus82
    • By Marcus82 15th Apr 18, 2:34 PM
    • 3Posts
    • 0Thanks
    Marcus82
    Stamp duty if owned years ago
    • #1
    • 15th Apr 18, 2:34 PM
    Stamp duty if owned years ago 15th Apr 18 at 2:34 PM
    Iím confused on stamp duty, I owned a property many years ago so looking into it it says I have to pay, but someone told me if I owned over 3 years ago there is a 3 year rule and Iím classed as a first time buyer again. How would they know if I owned a property before and am renting now?
    So I think I have to pay it - so if I do have to pay it is it possible to add half onto a mortgage as I didnít factor the costs in and means we donít have enough money after saving up the deposit. Thank you
Page 1
    • Tom99
    • By Tom99 15th Apr 18, 2:41 PM
    • 2,059 Posts
    • 1,385 Thanks
    Tom99
    • #2
    • 15th Apr 18, 2:41 PM
    • #2
    • 15th Apr 18, 2:41 PM
    No you are not a FTB so will pay stamp duty.
    If you can afford a higher mortgage and you are still within the lenders LTV ratio, you can borrow more to cover the stamp duty, but it might put the interest rate up.
    • SDLT Geek
    • By SDLT Geek 15th Apr 18, 4:26 PM
    • 235 Posts
    • 145 Thanks
    SDLT Geek
    • #3
    • 15th Apr 18, 4:26 PM
    • #3
    • 15th Apr 18, 4:26 PM
    Someone has got confused between:
    (a) first time buyers' relief when a residential property acquired at any time can stop you claiming the relief and
    (b) the rules about the higher rates of SDLT (the 3% surcharge) where there are some three year rules, where they apply they limit the ability to escape the surcharge based on the exception for the replacement of an only or main residence: https://www.zoopla.co.uk/discover/buying/12-month-countdown-to-escape-second-home-stamp-duty/
    • kingstreet
    • By kingstreet 15th Apr 18, 4:50 PM
    • 33,342 Posts
    • 18,034 Thanks
    kingstreet
    • #4
    • 15th Apr 18, 4:50 PM
    • #4
    • 15th Apr 18, 4:50 PM
    Provided you meet the loan to value threshold (ie not borrowing 95%) it may be possible to reduce your deposit to help you pay the stamp duty. You may end up in a higher LTV band and get a worse mortgage rate as a result.

    There is no formal way to add stamp duty to a mortgage.

    Whatever rules a lender might have on you being a FTB (such as no mortgage in the last three years) this does not apply to SDLT. You have previously owned a property so you cannot benefit from the current FTB SDLT exemption.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • AnotherJoe
    • By AnotherJoe 16th Apr 18, 8:01 AM
    • 9,367 Posts
    • 10,324 Thanks
    AnotherJoe
    • #5
    • 16th Apr 18, 8:01 AM
    • #5
    • 16th Apr 18, 8:01 AM
    I!!!8217;m confused on stamp duty, I owned a property many years ago so looking into it it says I have to pay, but someone told me if I owned over 3 years ago there is a 3 year rule and I!!!8217;m classed as a first time buyer again. How would they know if I owned a property before and am renting now?
    So I think I have to pay it - so if I do have to pay it is it possible to add half onto a mortgage as I didn!!!8217;t factor the costs in and means we don!!!8217;t have enough money after saving up the deposit. Thank you
    Originally posted by Marcus82
    They have computers.

    Whoever told you about this 3 year rule may be confused, and is certainly wrong.
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