9:09 AM, 2nd March 2018, About 5 years ago 8
We’re buying a new home to live in ourselves & have therefore been trying to sell our current main home. This is taking longer than we wanted and we’re on a timeline as the builders for the new home set the exchange and completion dates according to their build schedule.
My IFA suggested that rather than sell our existing home we instead consider temporarily renting it out (i.e. remortgaging it with a BTL mortgage to free up some of the equity in it) and buying our new home with a combination of a new residential mortgage, the partially released equity from remortgage of the old property and savings.
We already have a small portfolio of 5 BTL properties that we’ve had for 5+ years so the lettings market is familiar to us so no problems there.
My questions (my conveyancer hasn’t been very helpful unfortunately):
1. We’d effectively be buying the new build home without selling our existing home (at least temporarily) so we’d presumably fall foul of the extra 3% stamp duty tax? If we sell our old home within a certain amount of time could we entirely claim this back; does the fact that we’d be temporarily renting it out in the interim cause any problems with getting the stamp duty back?
2. After converting our current home to a BTL we’d possibly move into one of our existing BTL properties for a couple of months to make it easier to find a tenant for our current home; does this muddy the water as far as tax implications / stamp duty is concerned?
3. Any other issues that I haven’t considered?
I’d like to maybe discuss the various financial options and tax implications with someone but what sort of professional person do I need to talk to…the various questions I have don’t seem to entirely fit within the remit of an IFA, conveyancer or accountant but seem to be more of a crossover?
Thanks for any replies / information.