Joining of houses by purchasing next-door?

by Readers Question

8:35 AM, 21st January 2019
About 8 months ago

Joining of houses by purchasing next-door?

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Joining of houses by purchasing next-door?

I have recently purchased my neighbours house with the hope of one day connecting them together. Our son is wheelchair bound and needs tremendous additional support and equipment hence the future plan.

However, after using up just about all funds I can access the work on joining the houses will probably not happen for at least a year or so and in the mean time I’d probably rent it to a friend.

My question is when I come to pay my stamp duty do I declare it a second home and then try to claim it back once the houses are joined? or as a (future) main residence ?

Many thanks

Perry



Comments

Neil Patterson

8:45 AM, 21st January 2019
About 8 months ago

Hi Perry,

There is a huge amount to consider with your plans. On the Stamp Duty side I have added the government supplied flow chart to assist (the refund max term is now 3 years) and I have answered many readers question on this subject and read all the .Gov examples, but this is a completely new scenario to me.

On the face of it yes you would be purchasing a second home and have to pay the 3% surcharge. However, I don't know how you would attempt a refund as you are not then later technically selling a main residence. Unless it is somehow worked out by the solicitors when you create a new freehold for the entire property?

Also don't forget if mortgages are involved lenders often do not like the purchase of the property directly nextdoor and certainly would need to be fully aware of your plans to knock through.

I would alos check what the value of the knocked through property would be compared to the two individual as often it will be less depending on the proeprty and location.

Will you need planning permission?

Jerry Stone

11:40 AM, 21st January 2019
About 8 months ago

Yes you will. need Planning Permission and in many areas this may well not be a simple process as most authorities are under pressure it increase housing stock and not to reduce it.
Whilst you have some argument about your son planning decisions are rarely raised on individual circumstances.


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