To ask how to avoid 2nd home rate stamp duty

[Stampdutywoes]

Hear me out before you attack.

Currently living in rental property after splitting with ex partner. We own the home he is living in jointly.
The landlord of my rental wants to sell and I would like to buy it but the additional 5% stamp duty rate for what would count as a second home is a killer.
Are there any conveyancing solicitors who could advise on how to avoid (not evade) this extra 5%?

That’s mean, why do you hope that?

You’re incredibly rude. If this is the attitude you take to your landlord I don’t hold out much hope for your success.

Only getting frustrated trying to deal with your vitriol.

My landlord will take the best offer he can get, taking into count the potential purchaser’s financial position.

Other potential purchasers are available. All the vitriol is coming from you.

of course, and I am only interested in it if I can get a good price. Being a cash purchaser and the current tenant are both strong positives in my favour so we will see.

I may want to move back there so we want to keep our options open.

i don’t think a limited company purchase would help in our situation as the higher stamp duty rate would also apply in that setup.

It is mad because in reality they will each own one half of each of the two houses. Therefore they will have two halves each, which is no more than one home each.

I get this. I have wanted to do this with my OH.

No, you were right first time

It’s not such a mad idea, is it?

So that your landlord doesn't just go for your low offer and lose out in order to make up for your extra tax bill. Now that would be mean, expecting them to do that, wouldn't it?

What a horrible comment

5% below the asking price is not 'below market value', the market is falling through the floor in any case, it will be the price someone wants to pay.

5% isnt very much in terms of what people tend to offer usually, theres threads on here in the property section where people are asking about offering 20 or 30% less and being advised 'go for it'.

This poster is talking about 5% and you're hoping she is chucked out!!!

Why wouldn’t he go for the best option for him? Probably me as the existing tenant with a cash offer

No, its a brilliant idea, Ive had this thought for a while but as we're getting older, not sure if we could go through with it, the faff etc, but its perfect, we both would prefer our own space in many ways.

Yeah you cant do that thats a second home.

You have at least a half, but potentially a full (if he dies) interest in two houses, so you have to pay the second home rate. Other than you not living together, you are getting exactly the same rate as any other couple - if you think about it, you shouldn’t get a different result just because you’re not living together as a couple when your ownership interests are the same.

As others have pointed out, you are potentially worse off due to the complexities of living separately and which is main residence etc. I can only see why you’d do this if the relevant property is also used as a business or farm.

Best of both worlds as you can be together for the fun things but not the domestic drudgery and petty irritations

So he uses his cash to buy you out and gets a mortgage for the difference

Is that you, Fergie?!?

And "We have known each other for ever and trust each other completely" sounds like you need a Mumsnet education in trusting a man you're not married to...

As for 'getting a valuation of the current place for interest' - I would HIGHLY recommend that you do that at the point of purchasing the second property anyway, as that will become the baseline valuation for CGT calculations on your second property.

If I were you, I wouldn't want to risk HMRC arguing in 10 years time that the baseline valuation for your unique pile was £200k rather than £2m (eg). By not valuing it at all now, you leave yourself wide open. But then, if I were you, I would be cutting ties with someone I have allegedly split up with, crystallising a valuation on the original shared house, only buying one house in my sole name, AND getting proper tax advice from a property solicitor rather than a bunch of randoms on the internet.

🤷🏼‍♀️ each to their own!

So just have one property each then.......

Originally she didn't say anything about 5pc below asking price. She just said she would negotiate the price down to cover her extra tax. That's pretty mean, wanting someone else to cover her legitimate tax bill.

And how messy is this going to be when one or both of you wants to move someone else in?

I forsee issues when one of you dies - inheritance tax and CGT. Do you have children ? Have you made wills ? POA's ?

Luckily not all men are pigs and I’m financially independent of him anyway.

Obviously I will take proper legal and financial advice before proceeding but it’s been quite entertaining and informative to raise the question with a bunch of randoms on the internet too.