Can anyone help with a question on the upcoming stamp duty changes? I have been googling but still not clear....
If you already own a property on a buy to let mortgage, and now want to buy a second property which will be your main residence (while retaining the existing property and continuing to rent it out), will the purchase of the new property be subject to the new higher stamp duty rates?
Or do the new rates only apply if you are buying a second property as a buy to let, and are therefore getting a buy to let mortgage on that property?
N purchases her first property, which she will use as a buy-to-let. At the end of the day of the transaction she owns one property, so she will not pay the higher rates of SDLT, even though she is not using it as her main residence.
Two years later, N purchases a residential property which she will use as her main residence, but she decides to keep her buy-to-let property. In this instance, as she has two properties at the end of the day of the transaction and has not replaced a main residence (as she has not sold a previous main residence), the higher rates will apply.