SDLT on second empty property

[TonyF55]

If my parents buy a second property, leave it empty until my house is sold and i'm ready to move in, obviously buying it from my parents at the price they paid, do they pay the increased SDLT second property landlords do ?

They are not landlords, and will not be renting it out, I just want them to secure the property for me.

Thanks in advance
Tony

[Eric Mc]

Yes.

[TonyF55]

Perfect, thanks Eric

[anonymous-user]

TonyF55 said:

If my parents buy a second property, leave it empty until my house is sold and i'm ready to move in, obviously buying it from my parents at the price they paid

The cost of "securing the property for you" is going to be double stamp duty even before they get hit by the extra second home tax. You'll be going twice round solicitor's costs and Land Registry fees as well.

If the property is bought in your own name, essentially the parents making a short term loan to you of the purchase price, it seems to me you can avoid ALL of the additional costs...

[Uncool]

I know you get that extra SDLT if you then sell your primary residence within 3 years. Does that also apply if you sell the additional property instead?

[TonyF55]

rockin said:

If the property is bought in your own name, essentially the parents making a short term loan to you of the purchase price, it seems to me you can avoid ALL of the additional costs...

Makes sense, but.......

So parents loan me the money, I buy the property in my name, surely I still incur the additional SDLT as it will then be my second property that I own? or am I missing something.

Edit to add;

Just read on gov.uk that if i sell my house within 3 years or buying this additional property i can claim the extra SDLT back, so yes it totally makes sense for them to loan me the money.

Thanks

Edited by TonyF55 on Friday 6th April 00:01

[Eric Mc]

Will it be a genuine loan from your parents?

[Jobbo]

Uncool said:

I know you get that extra SDLT if you then sell your primary residence within 3 years. Does that also apply if you sell the additional property instead?

No, it doesn’t - there has been some recent press about a couple who discovered this the hard way but it was perfectly clear in the HMRC guidance.

[Uncool]

Jobbo said:

Uncool said:

I know you get back that extra SDLT if you then sell your primary residence within 3 years. Does that also apply if you sell the additional property instead?

No, it doesn’t - there has been some recent press about a couple who discovered this the hard way but it was perfectly clear in the HMRC guidance.

Important word added in bold that I omitted the first time. Does your answer still stand?

[Jobbo]

That’s how I read it anyway - yes, the answer is the same.

[TonyF55]

Eric Mc said:

Will it be a genuine loan from your parents?

Absolutely. They will get every penny back with funds from the sale of my house and once I've remortgaged a small amount on the property they loaned me the money for.

[Eric Mc]

TonyF55 said:

Absolutely. They will get every penny back with funds from the sale of my house and once I've remortgaged a small amount on the property they loaned me the money for.

Just checking. It's amazing how many parental loans eventually become gifts.