remortgaging to buy-to-let - Stamp Duty to pay?

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    remortgaging to buy-to-let - Stamp Duty to pay?

    Hi,

    I have a house that i used to live in and now rent out, but have a 'consent to let' from my bank, as i lived there for quite a few years before renting it. (i bought another house, shared with partner, and we paid stamp duty on the new house due to me still owning my old house)

    currently paying 4.45% on the mortgage, and i have seen that i can get a much better rate, although fixed term, under a proper buy to let mortgage.

    I called a mortgage adviser and he said he thinks that i would have to pay stamp duty on the old house if i remortgage to a proper buy-let-mortgage, but he didn't seem to know the answer. (not a very good adviser it seems)

    can anyone clarify this for me please?

    thanks

    #2
    Seems unlikely - Stamp duty is only payable when you purchase a property not when you mortgage it!

    Comment


      #3
      Unless you're changing the title deeds, no SDLT would be payable.
      If you're planning to mortgage jointly with your partner, you would need to change the title.

      If you're mortgaging in your own name which matches the title deeds, change the advisor.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        thanks thats exactly what i needed to know, and thought.

        another question, is there any downside to having the property on a 'consent to lease' basis?

        i'm looking at the remortgaging rates to put it onto a proper BTL mortgage, but what i don't like is the restriction on overpaying. i'm currently lumping off the mortgage with over-payments, as its unrestricted, although on a higher interest rate.

        does a BTL mortgage allow a little overpaying? like 10% of the loan per year or something like that?

        thanks again for the advice

        Comment


          #5
          I think it depends on the lender and the product.

          The downside to the property on a consent to let basis is that the lender may decline to extend the consent at some point.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment

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