Stamp duty questions

[Toilet Duck]

Morning all,

I'm looking to sell my house and buy another with my other half to live in. She has never bought a property before (so if on her own would be a "first time buyer"), I also own a BTL property which I wish to keep and carry on renting out.

If we were to get a joint mortgage, does that mean we would be liable for the new additional 3% stamp duty tax on top of the normal stamp duty rate due to the new purchase being classed as a "second property"?

If owning my BTL property (which is solely in my name) means we will be liable for the "extra" stamp duty rate, is there any way around it?

If the mortgage for the new property was solely in my girlfriends name than I'm guessing we wouldn't have to pay the extra 3% stamp duty as my BTL is nothing to do with her. However if we did this is there any way to get my salary etc still taken into account for the mortgage? Or does that only happen if you are named on the application?

Finally, do you have to pay stamp duty when purchasing land? If not, could you split the purchase of a property into 2 smaller payments (one payment for the house, one payment for the land) to reduce stamp duty?

Many thanks in advance for any help

[springfan62]

As I understand it;

You cannot claim first time buyers relief unless you are both first time buyers.

You do not pay additional SDLT if you sell your principal residence and then buy another property.

You cannot split the sale into two as they are connected transactions and treated as one.

[Croutons]

Toilet Duck said:

However if we did this is there any way to get my salary etc still taken into account for the mortgage? Or does that only happen if you are named on the application?

Think about what you've written here. Seriously, just think about it...........

[Toilet Duck]

springfan62 said:

As I understand it;

You cannot claim first time buyers relief unless you are both first time buyers.

You do not pay additional SDLT if you sell your principal residence and then buy another property.

You cannot split the sale into two as they are connected transactions and treated as one.

Thanks for posting. That's promising, if I can just "replace" my principle residence free of incurring the additional stamp duty rate then problem solved

[CSLM3CSL]

Toilet Duck said:

Thanks for posting. That's promising, if I can just "replace" my principle residence free of incurring the additional stamp duty rate then problem solved

I posted a similar inquiry last week. Yes, you can replace your principle residence but unfortunately as your partner is buying a principle residence and not replacing one, if your partner has their name is on the new property then you will be liable for the surcharge.

[Toilet Duck]

CSLM3CSL said:

I posted a similar inquiry last week. Yes, you can replace your principle residence but unfortunately as your partner is buying a principle residence and not replacing one, if your partner has their name is on the new property then you will be liable for the surcharge.

Thanks for posting.

Just so I understand correctly, are you saying if I bought the new property on my own with a mortgage soley in my name then it would be classed as replacing my principle residence so I would only pay "standard" stamp duty? But if I buy the new property jointly with my girlfriend (who has never bought a property before) and get a joint mortgage with her then we will get hit for the additional stamp duty? Even though this will be her "first home" that she has any financial interest in (she's never had a mortgage in full or in part in her name)?

Thanks

[Sarnie]

Toilet Duck said:

Thanks for posting.

Just so I understand correctly, are you saying if I bought the new property on my own with a mortgage soley in my name then it would be classed as replacing my principle residence so I would only pay "standard" stamp duty? But if I buy the new property jointly with my girlfriend (who has never bought a property before) and get a joint mortgage with her then we will get hit for the additional stamp duty? Even though this will be her "first home" that she has any financial interest in (she's never had a mortgage in full or in part in her name)?

Thanks

Forget mortgages....stamp duty has nothing to do with mortgages.....it's about property ownership.

If you are selling your main residence and buying another = normal stamp duty rates apply.

If you are buying a main residence and already own another = Additional stamp duty rates apply.


The rule of thumb is "After the transaction is completed, will I own more or less property than I did beforehand?"

If more = additional stamp duty is due.

If less or the same = normal stamp duty applies.

[Toilet Duck]

Sarnie said:

Forget mortgages....stamp duty has nothing to do with mortgages.....it's about property ownership.

If you are selling your main residence and buying another = normal stamp duty rates apply.

If you are buying a main residence and already own another = Additional stamp duty rates apply.


The rule of thumb is "After the transaction is completed, will I own more or less property than I did beforehand?"

If more = additional stamp duty is due.

If less or the same = normal stamp duty applies.

Perfect, thank you!

In that case it looks like I won't have to pay the additional stamp duty