Stamp Duty extra 3% – Do I pay flow chart

by Readers Question

8:41 AM, 25th February 2016
About 5 years ago

Stamp Duty extra 3% – Do I pay flow chart

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Stamp Duty extra 3% – Do I pay flow chart

Myself and my fiancee rent in London and due to the astronomical property prices here, we decided in Dec 2014 to purchase a buy-to-let residential investment in Northern Ireland. It completed in April 2015.

We’re now in the process of buying our first residential home together in NI also with a view of moving back to NI towards the end of the year.

We have never lived in or owned our own home.

Our mortgage broker had previously advised us that we’d be exempt from the 3% “second home” stamp duty surcharge but now he’s not so sure.

Can anyone clarify?

Barry

Editors Note: Stamp duty guide flow chart below

Stamp


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Comments

Mark Harris

17:48 PM, 12th April 2016
About 5 years ago

Help and advice needed for landlord buying new PPR.
Confusion reins.
Not sure from the above articles whether higher stamp duty would apply in my situation or not.
I an a landlord with a small portfolio of English BTL's and now looking to purchase a home for my wife and I rather than being currently in rented.
I have been advised by my mortgage adviser and conveyancer that the higher stamp duty would not apply, However...
From the above articles there does not seem to any definitive concussion either way, or any update since before the budget so still not sure as to any current SD liability that may apply.
To confuse things even more the property I am thinking of purchasing has a separately taxed (council) basement flat, but I believe shares water supply.
Having now just seem this BBC news article ( http://www.bbc.co.uk/news/business-36023867 ) this has once set alarm bells ringing for me.
I therefore ask if anyone does, as yet, have a definitive answer to, or solid advise on this situation.
Failing that, I can feel a call to the HMRC coming on, but I can guess what they will say...

Martin Gardner

9:44 AM, 18th May 2016
About 4 years ago

I am buying a larger main residence for myself and converting my current main residence to a BLT product under a new lender, I have been advised that the BLT new mortgage and my new residential mortgage have to complete on the same day, as naturally the BLT must be available to let as we move into our new main residence. I also have several BLT properties. Would the new higher rate be applicable on the new main residence as it would only be one main property for my family. Im in the understanding as its not a second home or investment that it wont, anyone clear this for me?

Neil Patterson

9:49 AM, 18th May 2016
About 4 years ago

Hi Martin,

Yes you will pay the extra Stamp duty on your new main residence unless you sell the old one and then you would get a refund.

Martin Gardner

9:59 AM, 18th May 2016
About 4 years ago

Reply to the comment left by "Neil Patterson" at "18/05/2016 - 09:49":

But you don't pay it cause you already have BLT, so if changing current to BLT it would not be my main residence anymore? I have just approved a mortgage through this method awaiting seller to lift a charge on her property before we can complete. Lending was on conditioned both exchanged same day. My partner is joint on mortgage but she is coming off and in my name only under new BLT lending. Not sure why i would be penalised as I get the residential mortgage rate and deposit for new main residence so why i get higher stamp is beyond me or would i say fair? Im confirming with my advisor as no one seems 100% certain apart from referring to the sold aspect reference but no reference refers to change of mortgage to BLT. Unless you already have that confirmed

Neil Patterson

10:04 AM, 18th May 2016
About 4 years ago

Hi Martin,

The flow chart above, shows if you end up owning more than one property and you are not selling your old main residence to replace for the new one you will end up paying the extra SDLT on the new main residence you are purchasing 🙁

Neil Patterson

10:05 AM, 18th May 2016
About 4 years ago

Best to speak to your solicitor not a mortgage adviser as this is not part of their training or regulation at the moment.

stuart edwards

20:11 PM, 18th May 2016
About 4 years ago

The government introduced the new stamp duty to prevent people buying additional property without either...1..selling their existing property or 2...paying the higher stamp duty. Am afraid you will have to pay the new levy.

David Lovegrove

21:23 PM, 18th May 2016
About 4 years ago

My partner does not own any property but she lives with me.
I own several properties and have been advised by my solicitor that if she buys a property solely in her name she will have to pay stamp duty .
Can anyone confirm that this is the case. We are not married at the present time but plan to be later this year.

Chris Clare

9:10 AM, 19th May 2016
About 4 years ago

Subject to the new property going in her sole name, If she does not own any other properties at the time of the purchase she will pay the normal basic rate of stamp duty without any additional levy.

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