New Stamp Duty change is looming...
Discussion
Kermit power said:
I would agree that the OP shouldn't be better off than someone staying in the same house and buying a BTL, but in this case, surely he's going to be - assuming he's moving to a larger property - a lot worse off?
Let's assume you're living in a nice 5-bed detached house and decide to buy a 2 bed terrace as a BTL. You'd pay the extra stamp duty on the BTL, which I think is fair enough.
But if you're already living in a 2 bed terrace, and decide to buy a 5 bed detached and rent out the 2 bed terrace, you'd end up paying the extra stamp duty on the new property, even though you're renting out the old one. You're pay far, far more than the chap in scenario 1 to be in exactly the same position in terms of property portfolios.
Surely that's unfair on the OP and people like him?
That's exactly the position that we're currently in. In fact it works out potentially cheaper to sell our old house and then buy it back again. Let's assume you're living in a nice 5-bed detached house and decide to buy a 2 bed terrace as a BTL. You'd pay the extra stamp duty on the BTL, which I think is fair enough.
But if you're already living in a 2 bed terrace, and decide to buy a 5 bed detached and rent out the 2 bed terrace, you'd end up paying the extra stamp duty on the new property, even though you're renting out the old one. You're pay far, far more than the chap in scenario 1 to be in exactly the same position in terms of property portfolios.
Surely that's unfair on the OP and people like him?
I see where the OP is coming from, but I think he is wrong.
He is talking about moving out of his home (main residence) living with relatives, and then renting out his home. All well and good.
But looking at the flow chart, that means when he buys his new house, he will be owning two properties, he will not be replacing his main residence (in terms of selling one house and buying another) and is therefore going to be paying the surcharge.
The system seems to make allowance only for those who want to sell and buy their main residence at (or at least within 18 months with the refund) the same time.
He is talking about moving out of his home (main residence) living with relatives, and then renting out his home. All well and good.
But looking at the flow chart, that means when he buys his new house, he will be owning two properties, he will not be replacing his main residence (in terms of selling one house and buying another) and is therefore going to be paying the surcharge.
The system seems to make allowance only for those who want to sell and buy their main residence at (or at least within 18 months with the refund) the same time.
Eric Mc said:
LDN said:
Again, this is not true....... if you have a BTL portfolio but you sell your main residence whilst purchasing another main residence, you will not pay the extra stamp duty in that purchase. So that is why the status of a property (whether it's a main residence or a part of ones BTL portfolio) is important.
Not sure if I'm missing something or you are. Genuinely.
You are trying to make it more complicated than it is.Not sure if I'm missing something or you are. Genuinely.
However, you MAY end up being correct because the legislation does not yet exist - so nothing is ruled out. I wouldn't be surprised if all sorts of complicated exemptions will need to be introduced to cover all the possible permutations.
This is also causing a major issue for me. I own a house and so does my girlfriend. We live at my girlfriends and I have tenants in my house contracted to November this year.
We are looking at buying a new main home for us to live in (mortgage will be in my name only). Would I have to pay the increased stamp duty if we bought a new property as it would be our main residence as my current house I own has been rented out since November 2015??
We are looking at buying a new main home for us to live in (mortgage will be in my name only). Would I have to pay the increased stamp duty if we bought a new property as it would be our main residence as my current house I own has been rented out since November 2015??
Beni997 said:
Would I have to pay the increased stamp duty if we bought a new property as it would be our main residence as my current house I own has been rented out since November 2015??
Under the proposed rules. Yes the 3% applies but if you sell your old house within 18 months then you'll get it back. However.... the rules haven't been clarified in the sense that if you sell your old house, will they consider it to be that you've sold your "previous main residence" as technically your girlfriends was your main residence as the point of purchasing your new house. How they plan to implement this new tax and deal with the paperwork side isn't 100% clear yet.
Beni997 said:
This is also causing a major issue for me. I own a house and so does my girlfriend. We live at my girlfriends and I have tenants in my house contracted to November this year.
We are looking at buying a new main home for us to live in (mortgage will be in my name only). Would I have to pay the increased stamp duty if we bought a new property as it would be our main residence as my current house I own has been rented out since November 2015??
It's simply not clear and your predicament is not too dissimilar to mine and many others... it's a joke that it's been left so vague so people know not what to do.We are looking at buying a new main home for us to live in (mortgage will be in my name only). Would I have to pay the increased stamp duty if we bought a new property as it would be our main residence as my current house I own has been rented out since November 2015??
Du1point8 said:
If I own a property outright and my OH is not on the deeds/mortgage/etc, what are the repercussions of the next one being in joint names or just solely her name?
Still get messed up by the increase in stamp duty?
If you plan on keeping your current place then yes you will be stung... if you sell up within 18 months of completion in your new place you will be refunded he additional stamp duty. If you want to keep your current place - maybe have your new home registered in only your OH name - and then have an agreement drawn up to protect yourself (depending on your trust levels!) - it's worth remembering that the value of the place will determine whether the hassle is worth trying to dodge the additional duty... the additional duty on a place around the 140,000 mark will be 4 grand - but on something over 300,000 / 400,000 then it goes into the tens of thousands. Still get messed up by the increase in stamp duty?
LDN said:
Du1point8 said:
If I own a property outright and my OH is not on the deeds/mortgage/etc, what are the repercussions of the next one being in joint names or just solely her name?
Still get messed up by the increase in stamp duty?
If you plan on keeping your current place then yes you will be stung... if you sell up within 18 months of completion in your new place you will be refunded he additional stamp duty. If you want to keep your current place - maybe have your new home registered in only your OH name - and then have an agreement drawn up to protect yourself (depending on your trust levels!) - it's worth remembering that the value of the place will determine whether the hassle is worth trying to dodge the additional duty... the additional duty on a place around the 140,000 mark will be 4 grand - but on something over 300,000 / 400,000 then it goes into the tens of thousands. Still get messed up by the increase in stamp duty?
In other words I can't f
king win at all.I have another solution, but that needs a friendly estate agent from abroad to help me.
LDN said:
It's simply not clear and your predicament is not too dissimilar to mine and many others... it's a joke that it's been left so vague so people know not what to do.
It's completely ridiculous why can't they just make it clear then everyone knows where they stand? It's stopping us buying a new house as if this wasn't hanging over our heads we would of purchased a new house last weekend. Surely this increased stamp duty system will just be passed onto the tenants with increased rental so the landlords cover any costs meaning people that are renting are hit the hardest??Beni997 said:
LDN said:
It's simply not clear and your predicament is not too dissimilar to mine and many others... it's a joke that it's been left so vague so people know not what to do.
It's completely ridiculous why can't they just make it clear then everyone knows where they stand? It's stopping us buying a new house as if this wasn't hanging over our heads we would of purchased a new house last weekend. Surely this increased stamp duty system will just be passed onto the tenants with increased rental so the landlords cover any costs meaning people that are renting are hit the hardest??That's not how the market works at least in the short term. Long term if this effects the supply of rental property it may push rents up.
Beni997 said:
It's completely ridiculous why can't they just make it clear then everyone knows where they stand? It's stopping us buying a new house as if this wasn't hanging over our heads we would of purchased a new house last weekend. Surely this increased stamp duty system will just be passed onto the tenants with increased rental so the landlords cover any costs meaning people that are renting are hit the hardest??
Can you not complete by the 1st April? That's what I'm doing, had an offer accepted Tuesday Du1point8 said:
If I own a property outright and my OH is not on the deeds/mortgage/etc, what are the repercussions of the next one being in joint names or just solely her name?
Still get messed up by the increase in stamp duty?
If your other half is married to you, you only get to own one property between you (no matter whose names they are each in) before you trigger the extra 3% - based on the consultation paper. If you are unmarried you can own one in each name before triggering the extra 3%.Still get messed up by the increase in stamp duty?
maxest said:
Beni997 said:
It's completely ridiculous why can't they just make it clear then everyone knows where they stand? It's stopping us buying a new house as if this wasn't hanging over our heads we would of purchased a new house last weekend. Surely this increased stamp duty system will just be passed onto the tenants with increased rental so the landlords cover any costs meaning people that are renting are hit the hardest??
Can you not complete by the 1st April? That's what I'm doing, had an offer accepted Tuesday LDN said:
Completing by April 1st is a long shot now... if it's a cash purchase and there's no leasehold shenanigans involved, it may be doable but even then... you may scrape in but in a general sense; it's too late to buy now, and not be stung. I hope you make it before the midnight deadline! I'd be onto the solicitors five times a day to be sure.
True I was advised there was no chance if a mortgage was involved, fortunately I can pay cash, and i'll mortgage in 6 months time. I've just sent the solicitors an email to see where we are upto lol maxest said:
LDN said:
Completing by April 1st is a long shot now... if it's a cash purchase and there's no leasehold shenanigans involved, it may be doable but even then... you may scrape in but in a general sense; it's too late to buy now, and not be stung. I hope you make it before the midnight deadline! I'd be onto the solicitors five times a day to be sure.
True I was advised there was no chance if a mortgage was involved, fortunately I can pay cash, and i'll mortgage in 6 months time. I've just sent the solicitors an email to see where we are upto lol If you don't chase and chase; these things can lag horribly. I have my fingers crossed for you!
LDN said:
Yes, my last purchase was cash and I thought it'd be sewn up within four weeks... I needed a fast purchase (nothing to do with stamp duty) and was chasing it every day; it still took nine weeks! The property was a leasehold apartment so that was part of the hold up as you rely on everyone sending stuff in a timely fashion; never the case! With my purchase, I ended up calling both sides and getting the agent involved throughout to just chase and chase... my solicitor was held up on some points in the leasehold agreement and I ended up doing her job for her and clarifying the points; it would have taken weeks if I'd left it to her. Useless. When the solicitor bill came I actually said that I'd like a discount having done half her job for her.
If you don't chase and chase; these things can lag horribly. I have my fingers crossed for you!
Well this is a freehold property, but I know how these things can still drag, and one concern is that the vendors are elderly, i'm also not using my usual solicitor as he's away until the 1st! So lots can certainly go wrong, i'll take your advise and chase and chase! If you don't chase and chase; these things can lag horribly. I have my fingers crossed for you!
Jobbo said:
Du1point8 said:
If I own a property outright and my OH is not on the deeds/mortgage/etc, what are the repercussions of the next one being in joint names or just solely her name?
Still get messed up by the increase in stamp duty?
If your other half is married to you, you only get to own one property between you (no matter whose names they are each in) before you trigger the extra 3% - based on the consultation paper. If you are unmarried you can own one in each name before triggering the extra 3%.Still get messed up by the increase in stamp duty?
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