Discussion
Buying a house @ 350k , i want to keep my old house and use as let to buy , which means 25k stamp duty -im wondering if its is worth it ? (rents about 1150pmonth) its equiavalent to selling my old house 25k under normal value.I am aware that within 3 yrs i can reclaim Stamp duty if i sell old home , but it would feel like a deadline panic sale.Some say , swallow the 25k as i will gain far more in house values increasing
What is the old house worth?
Would you pay less stamp duty if you sold the old house to a LTD company (which you own), then buy the new house as your only dwelling?
DYOR.
The other thing is, if you don't sell, you have more freedom of timing your buy and can perhaps drive a harder bargain?
Things which don't look optimum in terms of tax can be the best/only way to secure the house you really want.
I'd advise you not to take advice from anyone here, including me.
Treat it as 'food for thought'.
Would you pay less stamp duty if you sold the old house to a LTD company (which you own), then buy the new house as your only dwelling?
DYOR.
The other thing is, if you don't sell, you have more freedom of timing your buy and can perhaps drive a harder bargain?
Things which don't look optimum in terms of tax can be the best/only way to secure the house you really want.
I'd advise you not to take advice from anyone here, including me.
Treat it as 'food for thought'.
OutInTheShed said:
What is the old house worth?
Would you pay less stamp duty if you sold the old house to a LTD company (which you own), then buy the new house as your only dwelling?
DYOR.
The other thing is, if you don't sell, you have more freedom of timing your buy and can perhaps drive a harder bargain?
Things which don't look optimum in terms of tax can be the best/only way to secure the house you really want.
I'd advise you not to take advice from anyone here, including me.
Treat it as 'food for thought'.
Old house worth about 230k (mortgage free).Yes, no chain helps in bargaining. LTD company route looks a bit complicated.It seems the amateur landlord is ditching BTL due to Stamp Duty costs .Would you pay less stamp duty if you sold the old house to a LTD company (which you own), then buy the new house as your only dwelling?
DYOR.
The other thing is, if you don't sell, you have more freedom of timing your buy and can perhaps drive a harder bargain?
Things which don't look optimum in terms of tax can be the best/only way to secure the house you really want.
I'd advise you not to take advice from anyone here, including me.
Treat it as 'food for thought'.
tali1 said:
Buying a house @ 350k , i want to keep my old house and use as let to buy , which means 25k stamp duty -im wondering if its is worth it ? (rents about 1150pmonth) its equiavalent to selling my old house 25k under normal value.I am aware that within 3 yrs i can reclaim Stamp duty if i sell old home , but it would feel like a deadline panic sale.Some say , swallow the 25k as i will gain far more in house values increasing
Is it your old house, or your old home? The extent of emotional attachment you have to it may end up determining how you feel about any decision to rent. Fwiw, every time I’ve had a home that I could have rented, I’ve sold and invested the money in rental properties that are purely business assets: makes it much easier if/when there’s any damage. A Ltd also has to pay additional SDLT: you’d only see a net saving if the difference in prices was significant.
Lastly, do you have the liquid resources to deal with 12 months missed rent and a refurb? That is your exposure if you get the tenant from hell.
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