House swapping.....
Discussion
Is it legal to 'swap' houses with someone or is this considered tax avoidance?
Selling and buying is such a nausiating experiance. Would be nice to offer up current home in a 'swap for what you have' scenario.
Obviosuly mortgage etc would complicate the issue.
I have for instance a 17th century thatched cottage in north Hants. Both me and the missus now have to travel lon distances for work. Would be nice to swap house with someone that lives somewhere more suitable for our work lives.
FInding new jobs isnt really an opion right now...
Selling and buying is such a nausiating experiance. Would be nice to offer up current home in a 'swap for what you have' scenario.
Obviosuly mortgage etc would complicate the issue.
I have for instance a 17th century thatched cottage in north Hants. Both me and the missus now have to travel lon distances for work. Would be nice to swap house with someone that lives somewhere more suitable for our work lives.
FInding new jobs isnt really an opion right now...
An interesting idea, and have seen it happen on the odd occasion. Can't remember what the stamp duty position would be though.
ETA - Up until 2003 stamp duty was only paid on the difference between the 2 properties, sadly now it needs to be paid on the full amount just like a normal transaction.
So probably no tax incentives on this one. The hard part is finding someone who wants your place who also has something you would be prepared to live in.
ETA - Up until 2003 stamp duty was only paid on the difference between the 2 properties, sadly now it needs to be paid on the full amount just like a normal transaction.
So probably no tax incentives on this one. The hard part is finding someone who wants your place who also has something you would be prepared to live in.
Edited by rah1888 on Thursday 15th January 15:45
Simpo Two said:
The likelihood of each house being just what the other party is looking for seems slim.
It happened to me, although it's not what we were looking to do originally.Went to view a house and liked it, put an offer in and things started to progress. The the sellers rang us one night and asked if they could come and view our house as they were looking for something smaller than the one they were selling (to us). It worked out well due to the small chain
Simpo Two said:
The likelihood of each house being just what the other party is looking for seems slim.
?
i would normally agree, but the reach of the internet being what it is, theres bound to be someone out there that wants what we have that has an acceptable alternative? Even if they dont currently realise it or even want to move at this moment.....?
So, anyone want a 3 bed detached 17th century grade 2 listed thatched cottage in rural(ish) North Hants. Good road/rail links. Large rear garden backing onto fields.
Ideally looking for modern 4 bed property in (rural) South Hants/West Sussex.
Guide price (since the crash) approx £340k.
GreenDog said:
Simpo Two said:
The likelihood of each house being just what the other party is looking for seems slim.
It happened to me, although it's not what we were looking to do originally.Went to view a house and liked it, put an offer in and things started to progress. The the sellers rang us one night and asked if they could come and view our house as they were looking for something smaller than the one they were selling (to us). It worked out well due to the small chain
ds cracked down on this little ruse a while ago, and even if no money changes hands the stamp duty is due on the actual value of each house, you could possibly massage the selling value of both houses down to sneak in under a stamp duty level, but the EA would need to be complicit as you would be diddling them out of their fee 
Edited by .:ian:. on Thursday 15th January 16:40
.:ian:. said:
GreenDog said:
Simpo Two said:
The likelihood of each house being just what the other party is looking for seems slim.
It happened to me, although it's not what we were looking to do originally.Went to view a house and liked it, put an offer in and things started to progress. The the sellers rang us one night and asked if they could come and view our house as they were looking for something smaller than the one they were selling (to us). It worked out well due to the small chain
ds cracked down on this little ruse a while ago, and even if no money changes hands the stamp duty is due on the actual value of each house, you could possibly massage the selling value of both houses down to sneak in under a stamp duty level, but the EA would need to be complicit as you would be diddling them out of their fee Edited by .:ian:. on Thursday 15th January 16:40
JRM said:
Does your wife remain in the house as part of the swap?
Depends, what you got that I might consider swapping her for....? 
Large breasted blond type, annoying welsh accent but quite dirty when the occasion merits (she is welsh afetr all), passes MOT first time every time, could do with a re-upholster in the next few years. Sporty chasis that can take some off roading too....
What you got?
Adam B said:
as other have said canlt see anything wrong with accepting a very low (but not silly) price to reduce stamp tax and vice versa provided you agreed this privately
As has been mentioned, HMRC take the view that this is tax avoidance and reserve the right to independently value the property(ies) and charge you SDLT on what they think they're worth.Adam B said:
what EA? thought it was a swap through personal advertising
as other have said canlt see anything wrong with accepting a very low (but not silly) price to reduce stamp tax and vice versa provided you agreed this privately
It will be hard enough to find a suitable swap, let alone restricting to those that are advertised privately.as other have said canlt see anything wrong with accepting a very low (but not silly) price to reduce stamp tax and vice versa provided you agreed this privately
Happens more often than you'd think.
I've swapped a 3 bed house for a 4 bed house in the same town in the past....one worth £200k the other worth £300K. We did a deal and exchanged for £150K and £250K, hence reducing the Stamp duty. This can be done quite easily if you don't take the piss on the exchange values ie. £25K and £125K for example.
With the housing marked on its arse, house swapping is now very popular and there are many sites dedicated to it. Ones where people can trade up and down the ladder too. 'swaptogo' is pretty good:
http://www.swaptogo.com/
I've swapped a 3 bed house for a 4 bed house in the same town in the past....one worth £200k the other worth £300K. We did a deal and exchanged for £150K and £250K, hence reducing the Stamp duty. This can be done quite easily if you don't take the piss on the exchange values ie. £25K and £125K for example.
With the housing marked on its arse, house swapping is now very popular and there are many sites dedicated to it. Ones where people can trade up and down the ladder too. 'swaptogo' is pretty good:
http://www.swaptogo.com/
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