Avoiding big SDLT / Flipping main residence?

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    Avoiding big SDLT / Flipping main residence?

    Hi All,

    I have sold my main residence (exchanged contracts) and due to complete mid MAY due to not having found anywhere else.

    I have seen an auction property that will do as short term solution and its available at the end of March. My initial plan is to buy that (circa 150k), live in it until i find what i am looking for (in next 12 months ideally) and then rent it out.

    The final house that i am ideally looking to buy is going to be around the 400k. I understand the Stamp Duty on that will be 20k+ as it will be a second home purchase. Is there anyway round that? Its a deal breaker for me really. Is there anyway of flipping the main residence?


    Thanks








    #2
    You will initially pay the extra 3% stamp duty, but this will be refunded when you sell yould existing property.

    Comment


      #3
      Originally posted by DPT57 View Post
      You will initially pay the extra 3% stamp duty, but this will be refunded when you sell yould existing property.
      Yes but he will still own a rental property so surcharge applies. He may be able to claim back the surcharge on the rental property whilst he is living in it but will pay another surcharge when he buys another residence.

      Comment


        #4
        Originally posted by Kape65 View Post

        Yes but he will still own a rental property so surcharge applies. He may be able to claim back the surcharge on the rental property whilst he is living in it but will pay another surcharge when he buys another residence.
        If he is replacing his main home then he is entitled to reclaim the surcharge when he sells his existing property. Who can tell what will happen 12 months later. He might decide he likes living there once its refurbed. If he decides to rent it out he will pay the additional 3% on his next purchase, as you say.

        Comment

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