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To sell or not to sell

(5 Posts)
curlyrebel Mon 23-Apr-18 22:30:50

My DH and I are in the fortunate position of owning our own home in Greater London. My DH also rents out a flat he has paid off. We need to move and have been looking for a forever home. My DH wants to remortgage his flat to pay for the deposit towards it. This proposal has also been backed by a mortgage broker and someone else we know who works in property. My DH feels that our current property will be worth so much more in x years and we will be able to sell it then and pay off our next mortgage. However, I've done some research and can see we would be paying thousands more in stamp duty for a second home. I'm also not confident that the house prices in London will go back up. There is still a lot of uncertainty around Brexit here and I feel that we won't see the crazy increase in prices year on year that we've had again. So I would rather sell up and also have a larger deposit to put towards a nicer house. Has anyone in the property biz got any thoughts on this?

AjasLipstick Tue 24-Apr-18 04:12:34

We need to move and have been looking for a forever home.

Why? What are your reasons for needing to move?

teaandbiscuitsforme Tue 24-Apr-18 05:39:34

You wouldn't be paying more in stamp duty for this sale because you would be replacing your main residence with a new main residence.

We had a similar situation, although not a London flat and our rental is never going to massively increase in value, but we've decided to keep the rental as it pays for itself. I probably would have sold and reduced the mortgage on our new purchase!

curlyrebel Tue 24-Apr-18 20:09:57

AjasLipstick because our family is growing and our house is no longer big enough to accommodate us.

Teaandbiscuits I used the calculator on gov.uk and it seems that the new property doesn't replace your main residence if you've not sold your current one. The mortgage broker told us we should expect to pay another 3% as well. How did you get around this?

teaandbiscuitsforme Tue 24-Apr-18 20:18:17

Sorry, I didn't realise you were thinking of keeping your current house and the rental! Then yes that would incur the extra stamp duty.

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