House Purchase - Advice

[cronullasharks]

He could disguise himself as a Dyson

I don't think @navidson would want to do the things that joey makes his dyson do

 

[coollino]

Reckon I could get USM to sponsor the new house?

Please don't get them started. Even though I'm certain 99% of the financial bods live in their mum's basement, I can assure you they will be experts in house buying

 

[Tommy.]

Pretty sure you can claim back the additional Stamp Duty as long as you flog your old house within a year of completing on your new one.

Does mean you need the money upfront though of course to pay the additional in the first place...

 

[LEONARD]

If you are going for a terraced or semi-detached, try making some inquiries re your potential neighbours.

 

[Joey66]

Isn't there a stamp duty threshold? Simply sell your house for less than the threshold amount.

Problem solved.

£230.000 stamp duty allowed?

 

[ArtetaMagic]

Pretty sure you can claim that stamp duty back once you sell the other house as long as it's done within a certain time frame.

 

[ArtetaMagic]

Pretty sure you can claim back the additional Stamp Duty as long as you flog your old house within a year of completing on your new one.

Does mean you need the money upfront though of course to pay the additional in the first place...

Ahh somebody beat me to it

 

[ClausThomsen]

Stamp Duty Land Tax

You pay Stamp Duty Land Tax (SDLT) when you buy houses, flats and other land and buildings over a certain price in the UK.

www.gov.uk

It's in there about claiming back the stamp duty on a second property that (eventually) replaces your main residence. 36 months to sell your original property apparently and even beyond if there are special circumstances.

 

[Kurt.]

Pretty sure you can claim the stamp duty back as long as you flog your house within 12 months

 

[dublinbluenose]

It does

The problem is being charged it at the rate of the new house being my second home- even though I fully intend to sell my current property as soon as the sale of my partner's house goes through

Is it not both your 2nd homes regardless? If you're both selling properties to fund the purchase/renovation? Or am I missing something.

 

[Rita_Poon]

Sell one for the down payment on the New house and rent the second. Not only will it help pay your new house off but it will be a nice pension for you too.

Bingo.

 

[Rita_Poon]

Get a barge, live off grid.

Do you know anyone selling a recently refurbed model?

 

[Joey66]

Have you thought about renting both homes out and just squatting in @Joey66 house?

I will have to check my other mansion out now you have got me worried.....

 

[Tree13]

Is it not both your 2nd homes regardless? If you're both selling properties to fund the purchase/renovation? Or am I missing something.

If you sell one property and buy another in a linked transaction ( what we normally call being in a chain ) then at no point do you own two homes.

The issue here will be who owns which houses at which point.

You currently each individually own a house.

If you both sell prior to buying, you can put both names on the deeds for the new house with no issues. You won't pay the higher rate of SDLT for buying a second home, nor will either of you pay CGT for selling a second home: because neither of you will own a second home at any point.

If one of you sells one house before buying the new one but the other only sells their original house AFTER buying the new one then either:

A) You put both names on the new house, pay the higher rate of SDLT ( and attempt to claim it back ) and also pay CGT on the later sale of the other original house, because the non-seller will own two homes for a certain period; or

B) you only put one name on the new house (the person who sells their own house in advance) and don't add the second name until AFTER the second original house is sold. This means there is no need to pay the higher rate of SDLT nor any need to pay CGT, because neither person at any point owns two houses.

Your other option is to keep both existing houses and rent them both out. You would pay higher rate SDLT on your new purchase and would not be able to reclaim it, but you would not pay CGT because you wouldn't be selling anything. You would have to check the tax implications of receiving a rental income ( there's a threshold over which you start getting taxed ) to see if the numbers stack up, and you would have to pay CGT if /when you finally did sell one of rental properties... But houses are in massively short supply so will continue to rise in capital value and there's been an exodus of private landlords from the rental market ( loads selling up, loads more switching to holiday letting only because the tax system is more beneficial and the holiday let customers have no tenancy rights whereas long-term tenants do. ) so you could theoretically make a tidy income. Having said that, if you are in an area of high holiday letting demand you will make more money going down that route.

Source: used to work in conveyancing, have old law school buddies who still do.

 

[dublinbluenose]

If you sell one property and buy another in a linked transaction ( what we normally call being in a chain ) then at no point do you own two homes.

The issue here will be who owns which houses at which point.

You currently each individually own a house.

If you both sell prior to buying, you can put both names on the deeds for the new house with no issues. You won't pay the higher rate of SDLT for buying a second home, nor will either of you pay CGT for selling a second home: because neither of you will own a second home at any point.

If one of you sells one house before buying the new one but the other only sells their original house AFTER buying the new one then either:

A) You put both names on the new house, pay the higher rate of SDLT ( and attempt to claim it back ) and also pay CGT on the later sale of the other original house, because the non-seller will own two homes for a certain period; or

B) you only put one name on the new house (the person who sells their own house in advance) and don't add the second name until AFTER the second original house is sold. This means there is no need to pay the higher rate of SDLT nor any need to pay CGT, because neither person at any point owns two houses.

Your other option is to keep both existing houses and rent them both out. You would pay higher rate SDLT on your new purchase and would not be able to reclaim it, but you would not pay CGT because you wouldn't be selling anything. You would have to check the tax implications of receiving a rental income ( there's a threshold over which you start getting taxed ) to see if the numbers stack up, and you would have to pay CGT if /when you finally did sell one of rental properties... But houses are in massively short supply so will continue to rise in capital value and there's been an exodus of private landlords from the rental market ( loads selling up, loads more switching to holiday letting only because the tax system is more beneficial and the holiday let customers have no tenancy rights whereas long-term tenants do. ) so you could theoretically make a tidy income. Having said that, if you are in an area of high holiday letting demand you will make more money going down that route.

Source: used to work in conveyancing, have old law school buddies who still do.

By both I mean both people not both houses. Both are already home owners so the first time buyer exemption is irrelevant.

Maybe it's different in the UK but here there is no CGT on the sale of your principle private residence, as long as you've been living in it for 7 years (there's a sliding scale if it's less than 7 years).