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  • FIRST POST
    • Rubberduck08
    • By Rubberduck08 4th Jul 18, 7:12 PM
    • 2Posts
    • 0Thanks
    Rubberduck08
    Stamp duty
    • #1
    • 4th Jul 18, 7:12 PM
    Stamp duty 4th Jul 18 at 7:12 PM
    Hi,

    I currently own a property, I vacated and moved in with parents (informally renting a room) one year ago, I now rent this property out, my mortgage provider was made aware and I transitioned to a "consent to let" agreement.

    I am looking to buy a second property, I am currently saving, my new property will be in the region of 200k (hopefully 20k downpayment). My old property is in the region of 270k with around 90k equity.

    Do I have to pay the increased stamp duty on the new property? If so would it be more beneficial to remortgage my old property and make a purchase before November 2018 (as i wont have the downpayment by that date) or just go with it and save for the extra approximately 5k in stamp duty?

    Thanks
Page 1
    • Farmerbob
    • By Farmerbob 4th Jul 18, 10:12 PM
    • 207 Posts
    • 126 Thanks
    Farmerbob
    • #2
    • 4th Jul 18, 10:12 PM
    • #2
    • 4th Jul 18, 10:12 PM
    Yes you!!!8217;ll need to pay the Stamp Duty at the higher rate. I don!!!8217;t know the revelance of remortgaging your existing property, I guess you mean remortgage to a Buy to let? In which case you!!!8217;ll still be due the tax at the higher rate.
    • Rubberduck08
    • By Rubberduck08 4th Jul 18, 10:15 PM
    • 2 Posts
    • 0 Thanks
    Rubberduck08
    • #3
    • 4th Jul 18, 10:15 PM
    • #3
    • 4th Jul 18, 10:15 PM
    Ummm but if you do it before November 2018 you won't have to pay, I'm just trying to get advice on which is best, paying the advanced stamp duty or switching to buy to let and using some equity to buy a house sooner
    • Thrugelmir
    • By Thrugelmir 4th Jul 18, 10:19 PM
    • 59,776 Posts
    • 53,116 Thanks
    Thrugelmir
    • #4
    • 4th Jul 18, 10:19 PM
    • #4
    • 4th Jul 18, 10:19 PM
    Will your income support 360k of debt. Releasing equity will be factored into any decision made. Both by the lender releasing and the lender advancing.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Farmerbob
    • By Farmerbob 4th Jul 18, 10:22 PM
    • 207 Posts
    • 126 Thanks
    Farmerbob
    • #5
    • 4th Jul 18, 10:22 PM
    • #5
    • 4th Jul 18, 10:22 PM
    As far as Im aware the tax is already in place (at least since April 2016) Ive not seen anything indicating it does not apply until Nov 18. Switching to BTL wont mitigate any additional tax as it includes owning a second residential home whether it is to live or let out. As far as realeasing equity I guess that depends on the affordability of having two mortgages, might be one for a broker
    • Farmerbob
    • By Farmerbob 4th Jul 18, 10:29 PM
    • 207 Posts
    • 126 Thanks
    Farmerbob
    • #6
    • 4th Jul 18, 10:29 PM
    • #6
    • 4th Jul 18, 10:29 PM
    I guess it relates to this, Ill need to read up about this 3 year rule

    https://www.blakemorgan.co.uk/training-knowledge/features-and-articles/stamp-duty-land-tax-3-surcharge/
    • AnotherJoe
    • By AnotherJoe 4th Jul 18, 11:51 PM
    • 10,551 Posts
    • 12,068 Thanks
    AnotherJoe
    • #7
    • 4th Jul 18, 11:51 PM
    • #7
    • 4th Jul 18, 11:51 PM
    OP, why do you think you'll save 5k in SDLT if you remortage before November ? You aren't looking to sell it as far as I can see ?
    • Tom99
    • By Tom99 5th Jul 18, 9:12 AM
    • 2,609 Posts
    • 1,778 Thanks
    Tom99
    • #8
    • 5th Jul 18, 9:12 AM
    • #8
    • 5th Jul 18, 9:12 AM
    As said above, unless you sell the 1st property you will pay +3% stamp duty on the 2nd property.
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