10:01 AM, 6th January 2022, About 3 weeks ago 15
I bought a 2-bed flat in 2016 in Scotland as my main residence for £167k and have £77k left on the mortgage, the flat I believe now to be worth only ~£90k.
I moved back to England and bought a second home in 2019 (main residence) for £267k with £200k left on the mortgage, the house I believe now to be worth ~£300k.
I didn’t want to sell my flat because of the huge loss I would make, so I rent it out to a friend (albeit still on a residential mortgage) including bills but for less than the monthly mortgage payments + bills etc.
I paid additional surplus stamp duty on my second home in England (~£12,000) but understand if I sell my flat within 3 years I can get the additional part (~£8k) back but when my flat is worth so much less now than in 2016, I don’t want to sell it and accept the loss especially when it is being rented out.
I am a higher taxpayer (40%) and my girlfriend is a lower taxpayer (she doesn’t own any property) and my mother is a lower taxpayer (shared 50% ownership with my dad and mortgage free). My mother inherited a house off her mother in 2020 mortgage free and rents it out as an HMO. I have a sister who is also a lower taxpayer and homeowner. I don’t have any children.
I am the only one down on both mortgages but interested in purchasing a new property with my girlfriend (£400k-ish in England) but don’t want to pay the £22k stamp duty bill and don’t really want to sell my first flat at a significant loss. My second main home in England I am happy to sell as it’s increased in value but don’t really need to, to afford the third shared place with my girlfriend, so I am open to keeping and rent it out or selling.
My girlfriend doesn’t have as much savings or a high paid job so wouldn’t be able to afford £400k new home and soon as my name is involved we would be stung with a £22k stamp duty bill as it stands. I don’t particularly want to give my girlfriend £50kish, and it all be under her name as owner as it would leave me vulnerable and friends of friends have found themselves in a position which they significantly regretted doing similar.
I appreciate it may sound like I am trying to have my cake and eat it, while also insuring myself against risk, but we have to start somewhere –
Is there any options I can take such as transfer deed of flat to Mum as beneficiary and her pay the £1,500 (3% of the £50k which is above the threshold of £40k if valued at £90k) but I still pay the mortgage and sell my second home the usual way to avoid the additional stamp on my third shared place with girlfriend and I get the £8k additional stamp back (minus £1,500 I would give back to Mum)?
Or move both current properties over to a LTD/LLP?
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