Stamp Duty

[friendlyfired23]

Advice please ! Obv have asked our solicitor but he speaks in riddles.
I am in the process of selling my old apartment and buying a new house.
Desperate for the latter to go through asap, and we are in position to complete next week. Unfortunately my sale of my flat isn't looking like it will go through until mid sept. I don't live there, it is currently tenanted.

My question is about what I should do about stamp duty. Obv it's much more expensive if you own 2 properties but I will only be owning 2 for literally a period of about 16 days. I know I can reclaim stamp duty within 3 years but is there a way I can avoid paying the massive sum? If I had already sold my flat, the stamp duty on our new home would be approx £12k. Because it looks like I am buying an additional home, it's £27k! So obviously I'm trying to work out how to avoid paying the extra £15k which to be honest would be a massive push...

Thanks so much in advance, any help appreciated.

you need a new solicitor if he can’t clarify this for you

I don't know if there's a way around having to pay the extra, but could you increase the amount of your new mortgage to accommodate the £15k or will it slow things down with that? You'd be able to pay it back when your flat sells, so the extra interest cost will be minimal.

Could you ask your mortgage lender if they have any practical solutions as it's unlikely to be the first time this has happened.

I think you can reclaim the extra you have paid within 3 years. You will have to pay it though. You one 2 homes. This is why most people coordinate dates.

My parents recently reclaimed their stamp duty after a small overlap in owning two properties, they said it was very quick and easy (they were quite surprised).

I caveat this with the fact I am not a lawyer or conveyancer, but I am a mortgage broker.

No, there us no easy solution. Stamp Duty is paid upon completion & it's the solicitors duty to do this for you.

As I see it you have these options-

1. Delay completion until your flat is sold.

2. borrow more on the property you are buying & use existing savings to pay the stamp duty.

3. borrow money off family.