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%?

You’ve said that you don’t want to force a sale on “his” property, but what happens if you go through with this and then he decides at a later date that he needs his money back for whatever reason and wants to force you to sell “your” property? Would you be able to buy him out? Also, could jointly owning two properties potentially affect things like care home fees in the future?

I have the same rights as if I was living in the house with him, given that we own it 50:50. In theory, anyone could move a new partner into their shared home but it isn’t a realistic risk to stress over.

I guess we would have to come to a joint solution like civilised human beings. How is that different to any decisions that need to be made when couples split?

Please get a solicitor, you don't sound very clued up on anything.

Thanks mate!

Im a lawyer and your stamp duty point has been correctly answered but it’s moot: the bigger issue is no one (lawyer, friend, random in the street, their dog) would advise owing 1 let alone 2 properties with an ‘ex partner’. Who came up with this crazy idea?
if he can’t afford to buy you out the only reasonable solution is you sell your joint house and separately buy two homes (one each!)
what on earth has been happening for last 5 years while you’ve been renting? Has he being paying all the mortgage or paying you rent on your half?

Could you call Angela?

Gift the first property to one of your children.

Not true. It was our dog who suggested it and she’s usually pretty clued up on legal matters.

No mortgage and we’ve paid all costs 50:50 since I’ve been renting.

She just said deny everything.

They are more likely to evict him!

There’s cake and eating it. Can’t have both

Can in this case but can’t avoid the higher stamp duty

I think your answer is simple(ish) but would require you agreeing a value on the 1st house....

You value 1st house - lets say £2m, so £1m each
You value house 2 - lets say £800k, £400k each.
He transfers you £400k
You buy house 2 in your sole name
You place a charge of £600k on house 1 (£1m-£400k), payable on sale of house 1
House 1 gets put in his name.

So he owns £2m property but "owes" you £600k on sale = £1.4m
You own £800k property and have £600k charge = £1.4m

Then your existing wills continue and you leave everything to each other - although I'm struggling to understand why you would leave an ex-partner anything but anyhoo....

I don't think she has been actually separated or divorced in a way that any of us would recognise. I think she's dropped enough hints to let us know that they are still a couple, but that she's been renting a separate smaller house for her to retreat to from time-to-time when she's feeling "ill". It's pretty clear that they share more than the stately house and she's said she wants the option of being able to live there when she wants and quite feasibly still does live there for most of her time. The fact that she's been renting the smaller house for 5 years just means that they have had this arrangement for some time now.

Is that you Camilla?

100 plus posts later... please get your own solicitor.

Why don't you build a separate dwelling for when you're "feeling ill" on the jointly owned estate?

so it’s just a couple buying a second home together and trying to dodge the relevant tax.

That’s a good thought but would probably take a couple of years to plan and build so I’d need somewhere to live in the meantime. Wouldn’t want to have to deal with the sweaty tradesmen while it’s being built.

Does dodge mean avoid or evade in this instance?

Not even close

Yes, this illustrates what I was suggesting. @Stampdutywoes is there any reason you want to keep part ownership of property one? Transferring your share to your ex in return for first charge over 50% achieves the aim of property 2 being purchased without 2nd home tax.

You're welcome. It's given me a giggle.

Me too