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%?

Are you serious? I think because the assumption is that if you own a house jointly then, you know, you have a right to live there! So, if you own two houses jointly, as in your name is on the deeds of both, you have a right to live in both houses- hence you have a second home.

If you have no right to live in the first home then get your name off the deeds and you won’t need to worry.

He can’t buy you out, but somehow has the cash to buy half a second home with you? Since you say no mortgages are involved. Just pay the fucking taxes you owe and stop thinking you’re somehow an exception to the rule 🙄

Finances aside, this could get so messy. If you did manage to do this, you’d be connected to your ex for as long as either of you wanted to live in your properties - is that not going against the point of splitting? Things might be cordial now, but you never know what lies ahead. You’re going to be tied together on paperwork for years. And what happens if you meet someone new, and want to move again and need to realise your investment in House 1, but he doesn’t want to sell? Or if he needs to free up cash urgently, and puts it on the market for less than you want?

Op, why the hell would you actively choose to tie yourself even further to an ex you apparently moved away from at least 5 years ago?

What happens if you meet a new partner and want to buy a place with them, you then have to try and force the sale of not one but two properties?

What happens if your ex decides he wants to force the sale of the property when you are happy and living there and you end up having to move out?

Just figure out a way of actually splitting up and moving on.....

“Not really what the law is intended to cover”

Well, you would say that wouldn’t you? It’s not a good defence, it’s been tried before and didn’t work then either.

Ah! I thought it was just bollocks, but this makes far more sense.

Don't be rude. You're not showing much critical thinking yourself while you try to find a tax dodge.

He needs to either get a mortgage or sell the big house then, if he can't afford it.

Thanks Mum. I was expecting some vitriol but was hoping for some legal responses and maybe a few who could understand the dilemma.

Oh well. Absolutely no simple solution for this then. (Unlike millions of other divorced couples )
Your situation is obviously as unique as your house.

To be fair, you’ve had the legal responses, you just didn’t really think yours was the sort of situation it was meant to apply to.

Did a solicitor respond, I must have missed that while trying to dodge all the bullets.

Oh and this is how gazillions of people manage this situation-

• get main house values by 3 estate agents. Yes even if it’s unique;
• calculate and agree average valuation;
• one person buys other out using savings/ mortgage;
• if not possible, property is sold, any mortgage is repaid and equity divided between the two former owners;
• each former owner buys own house.

I’m actually finding this quite amusing

If he has enough ££ to buy you a new place outright, between you you have enough to pay the extra stamp duty.

I have some friends of mine had this

They basically made an agreement that he would buy her out

It was a proper legal agreement. So it would be much more sensible to make a properly agreement arranging that and then you’re the owner of one property each and nobody has to pay second home duty.

I’m surprised your solicitor hasn’t told you this because it’s really not that complicated.

Yes, we all have.

Have you read your posts?

You got the legal advice, you just didn't like it.

Why would an intelligent person who wants to be sure they are speaking to a solicitor ask the question here?

You're in a spiky mood for sure. Is the property Wuthering Heights?

I’m a lawyer - here’s my legal response - no you can’t avoid paying the second home tax on your second property. The legal definition doesn’t include what you actually consider your “home”, it is the fact you own two properties. There are exceptions, I.e you can be exempt for a year if the second house is on the market or being actively marketed for rent, but these won’t apply to you.

Jesus wept!

I’m chuckling away

Why? That’s the moment the explanation started to make sense to me?

Well if you want to retain ownership of two homes you’ll have to pay second home duty. It’s quite simple really.

Say the first house is worth a couple of million.

OK. I’ll bite. “The first house is worth a couple of million.”

You sell it.

You split the proceeds from the equity.

You both buy separate properties.

Financially it may not make a difference but legally it does. If you purchase a second property while still owning another, you’re liable for second home stamp duty. Not living in the first home will mean you pay CGT when it’s sold. Your (ex)partner will pay CGT on the second home when it’s sold.

I am a solicitor.

But you haven't yet found a tax dodge.