Stamp duty question
Discussion
So our landlord has decided to sell up. A bit inconvenient really at the moment for various reasons, but it is what it is...
However, I am a little confused about stamp duty.
My understanding is a first time buyer is exempt if the house is under £300k.
Problem is I'd be getting a mortgage with the other half and she isn't a first time buyer (but I am).
I can't quite tell if this means I would still be exempt if we did a joint mortgage due to me being a first time buyer, but I have a feeling we're going to be stung for 2% if the house is over £125K (which it likely will be although I'm in the North East so houses are quite cheap up here).
Can anyone advise? I've had a look at the gov website but I'm still not 100% sure to be honest.
The other way around it I would guess would be to get the mortgage in my name only, but then that's likely to affect my chances of being accepted (due to lower income)?
Cheers
However, I am a little confused about stamp duty.
My understanding is a first time buyer is exempt if the house is under £300k.
Problem is I'd be getting a mortgage with the other half and she isn't a first time buyer (but I am).
I can't quite tell if this means I would still be exempt if we did a joint mortgage due to me being a first time buyer, but I have a feeling we're going to be stung for 2% if the house is over £125K (which it likely will be although I'm in the North East so houses are quite cheap up here).
Can anyone advise? I've had a look at the gov website but I'm still not 100% sure to be honest.
The other way around it I would guess would be to get the mortgage in my name only, but then that's likely to affect my chances of being accepted (due to lower income)?
Cheers
TameRacingDriver said:
Thanks, thought as much. Bugger. Mind I've seen a house for £130k so maybe an offer of £124995 might be in order 
Don't really know where to start with all this stuff...
It's not unusual for properties to be listed below stamp duty thresholds so an offer like that would be quite normal.Don't really know where to start with all this stuff...
I've just seen that actually the stamp duty is now only £500 not 2% as it was before, so that's not so bad in the end. That rate was pre-2018 I believe.
I used this tool to calculate.
https://www.tax.service.gov.uk/calculate-stamp-dut...
That's made me feel better.
I used this tool to calculate.
https://www.tax.service.gov.uk/calculate-stamp-dut...
That's made me feel better.
TameRacingDriver said:
Another question, if anyone knows...
My dad has put his house into a trust for me, so that the property will be mine when my parents pass away.
Is this classed as me having a second property? If so, the duty will leap up to £5K which is even worse than I originally thought.
Depends on the type of trust. As a beneficiary, you are deemed to own the property if the trust is for example a bare trust, income in possession trust, or any other trust where you have life occupancy of a property. My dad has put his house into a trust for me, so that the property will be mine when my parents pass away.
Is this classed as me having a second property? If so, the duty will leap up to £5K which is even worse than I originally thought.
Alpinestars said:
What sort of trust is it?
Not sure exactly but said there's no income or occupancy so he thinks it will be ok - obviously he is not a solicitor though.Ultimately I probably need some professional advice.
Another potential thorn is the fact my other half is 46 next year so will they even give us a mortgage?!
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