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  • FIRST POST
    • mlc.16
    • By mlc.16 15th Apr 18, 2:54 PM
    • 1Posts
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    mlc.16
    remortgage/bridging loan to buy or not?
    • #1
    • 15th Apr 18, 2:54 PM
    remortgage/bridging loan to buy or not? 15th Apr 18 at 2:54 PM
    To buy or not to buy this is the question.
    Current Situation:
    1. Own three rentals.
    2. Live in work related accommodation.
    3. Early retirement end of June put in offer to buy new Primary Residence. 4. Currently selling one rental to part fund purchase of new P.R.
    5. First time buyer of rental has now withdrawn offer so rental back on the market. 6. Vendors of new P.R unable wait (they are cash buyers in no upward chain).
    What will it cost us to pursue this new primary residence regarding:
    A. Bridgeing Loan.
    B. Remortgage. C. SDLT.
    In order to reduce costs for a comfy no pressure retirement should we give up on the current new P.R and move into our rental for a while then sell after we find a new P.R.?
    Anyone else been in this situation?
    Last edited by mlc.16; 15-04-2018 at 3:19 PM. Reason: incorrect spelling
Page 1
    • G_M
    • By G_M 15th Apr 18, 3:04 PM
    • 44,056 Posts
    • 52,184 Thanks
    G_M
    • #2
    • 15th Apr 18, 3:04 PM
    • #2
    • 15th Apr 18, 3:04 PM
    To buy or not to buy this is the question.
    Current Situation:
    1. Own three rentals.
    2. Live in work related accommodation.
    3. Early retirement end of June put in offer to buy new Primary Residence. 4. Currently selling one rental to part fund purchase of new P.R.
    5. First time buyer of rental has now withdrawn offer so rental back on the market.
    6. Vendors of new P.R unable wait (they are cash buyers in no upward chain).

    What will it cost us to pursue this new primary residence regarding:
    A. Bridgeing Loan.
    Depends how much you borrow, for how long, and at what rate of interest
    B. Remortgage.
    Depends what mortgage product you take out, from which lender
    C. SDLT.
    Depends how much the purchase price is. You'll not be a FTB nd you'll be liable for the additional 3% whatever you do
    In order to reduce costs for a comfy no pressure retirement should we give up on the current new P.R and move into our rental for a while then sell after we find a new P.R.?
    If you wish.
    Anyone else been in this plight?
    Originally posted by mlc.16
    Yes (though I would not describe it as a 'plight'.)
    • SDLT Geek
    • By SDLT Geek 15th Apr 18, 4:21 PM
    • 236 Posts
    • 145 Thanks
    SDLT Geek
    • #3
    • 15th Apr 18, 4:21 PM
    • #3
    • 15th Apr 18, 4:21 PM
    C. SDLT.
    Depends how much the purchase price is. You'll not be a FTB nd you'll be liable for the additional 3% whatever you do
    Originally posted by G_M
    It is not inevitable that you will be liable for the extra 3% stamp duty land tax. What is your property owning history? Have you previously owned a property which you lived in as your only or main residence and which you have since disposed of? Even very many years ago?

    Since the date of that disposal have you bought another property to live in? (Perhaps one of your rental properties which you bought to live in but then later rented out?)

    If your property owning history helps you then you are likely to need to complete the purchase by 26 November 2018 in order to be able to take advantage of the exception from the higher rates for the purchase of an only or main residence: https://www.zoopla.co.uk/discover/buying/12-month-countdown-to-escape-second-home-stamp-duty/ since for purchases after that date some three year rules come fully into play.
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