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House Purchase - Advice

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navidson

navidson

Player Valuation: £70m
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After 13 blissful years of living in our own separate houses, the missus and I have decided to pool resources and buy a new house together

The original plan we had was to sell her house - and use the equity in there to acquire the mortgage on the new place. Then, once that was all sorted, I would sell my house, using the equity in mine to fund any renovations and hopefully pay a lump off the new mortgage total.

The complication seems to come from the dreaded Stamp Duty. If I sell my house separately, then the new house will become my 'second home' apparently - and therefore I will need to pay a large chunk of cash towards Stamp Duty (even though we will have already paid Stamp Duty when we buy the house)

Does anybody have any advice on the best way to navigate the whole financial mess which is buying and selling a house in modern Britain?
 
Shevin Keedy said:
Isn't there a stamp duty threshold? Simply sell your house for less than the threshold amount.

Problem solved.
Click to expand...
Think it's only on the first home thst the threshold applies.

From MSE:

Buy-to-let and second home stamp duty
Where you buy a property in addition to one you already own – for example a second home (or third, fourth, etc) – you'll need to pay a higher rate of stamp duty:

In England and Northern Ireland the higher rate of stamp duty is equivalent to an extra three percentage points on top of standard rates.

For example, if you were buying a second home for £300,000, you would pay £11,500 in stamp duty, whereas if it was your only property (and you weren't a first-time buyer), you'd only pay £2,500.

In Scotland it's equivalent to an extra six percentage points.

So, on a second property worth £300,000, you'd pay £22,600. That compares to £4,600 if the house you were buying was your only property (and you weren't a first-time buyer).
In Wales it's equivalent to an extra four percentage points.

So, on a second property worth £300,000, you'd pay £16,950 in stamp duty. That compares to £4,500 if the house you were buying was your only property.
This higher rate also applies if you're buying an additional property with the intention of renting it out (known as buy-to-let). However, if you're a first-time buyer intending to rent your property out as a buy-to-let then you won't need to pay the higher rate – though you won't qualify for first-time buyer stamp duty relief either.
 
navidson said:
After 13 blissful years of living in our own separate houses, the missus and I have decided to pool resources and buy a new house together

The original plan we had was to sell her house - and use the equity in there to acquire the mortgage on the new place. Then, once that was all sorted, I would sell my house, using the equity in mine to fund any renovations and hopefully pay a lump off the new mortgage total.

The complication seems to come from the dreaded Stamp Duty. If I sell my house separately, then the new house will become my 'second home' apparently - and therefore I will need to pay a large chunk of cash towards Stamp Duty (even though we will have already paid Stamp Duty when we buy the house)

Does anybody have any advice on the best way to navigate the whole financial mess which is buying and selling a house in modern Britain?
Click to expand...
I must admit I thought stamp duty only applied to purchases? Might be wrong.
 
navidson said:
After 13 blissful years of living in our own separate houses, the missus and I have decided to pool resources and buy a new house together

The original plan we had was to sell her house - and use the equity in there to acquire the mortgage on the new place. Then, once that was all sorted, I would sell my house, using the equity in mine to fund any renovations and hopefully pay a lump off the new mortgage total.

The complication seems to come from the dreaded Stamp Duty. If I sell my house separately, then the new house will become my 'second home' apparently - and therefore I will need to pay a large chunk of cash towards Stamp Duty (even though we will have already paid Stamp Duty when we buy the house)

Does anybody have any advice on the best way to navigate the whole financial mess which is buying and selling a house in modern Britain?
Click to expand...

Tricky one that. Send a PM to @Bungle as he is a mortgage advisor and will no doubt have a solution to this.

Good luck.
 

navidson said:
After 13 blissful years of living in our own separate houses, the missus and I have decided to pool resources and buy a new house together

The original plan we had was to sell her house - and use the equity in there to acquire the mortgage on the new place. Then, once that was all sorted, I would sell my house, using the equity in mine to fund any renovations and hopefully pay a lump off the new mortgage total.

The complication seems to come from the dreaded Stamp Duty. If I sell my house separately, then the new house will become my 'second home' apparently - and therefore I will need to pay a large chunk of cash towards Stamp Duty (even though we will have already paid Stamp Duty when we buy the house)

Does anybody have any advice on the best way to navigate the whole financial mess which is buying and selling a house in modern Britain?
Click to expand...
Go and see Relate first.....
 


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