Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

I am a first time buyer but need to pay stamp duty - can't believe it's so high

91 replies

HibiscusPurple · 17/01/2021 11:34

I am a first time buyer and will be buying a property independently. But, because I am married to someone who bought a property years before we met, I have to pay stamp duty.

Let's assume the stamp duty holiday is not extended past March and that I buy a house for £250,000.

Am I right in thinking stamp duty payable is 12,500? Shock

Do you have to pay this in one go or can you spread it out?

OP posts:
ProudDada · 17/01/2021 11:38

How in the world did you work that out? After March your stamp Duty on a £250k house would be £2500.

0% on the first £125,000
2% on the second £125,000

Original poster
HibiscusPurple · 17/01/2021 11:39

I should add, if this changes anything, that the house will be DH and I's main residence. We have only ever rented together.

But he is still on the mortgage/deeds on the other house.

OP posts:
DicklessWonder · 17/01/2021 11:40

Your sum is way out.

Stamp duty is paid in one go.

Original poster
HibiscusPurple · 17/01/2021 11:41

@ProudDada

How in the world did you work that out? After March your stamp Duty on a £250k house would be £2500.

0% on the first £125,000
2% on the second £125,000

Because it is classed as a second home, as DH is still on the mortgage /deeds of the first house?
OP posts:
Lulu1919 · 17/01/2021 11:42

Seems a bit harsh if you are buying independently
Seems unfair on married people !!!

Pleaseaddcaffine · 17/01/2021 11:45

It's correct and that's the law if buying together then yes it's the 12500 as it's your partners second home. It's payable in one lump sum and must be paid.
If only you were in the deeds and buying alone it's the 2500. Can you afford o buy alone without dp on deeds?
If no then your dp will need to get rid of his first home to mot be liable for the stamp.

Berthatydfil · 17/01/2021 11:47

You aren’t a first time buyer though are you?

You and your husband have a house /home so you are buying a second home as a holiday home or investment/rental property.

Why do you think you should be treated the same as people just starting out on the property ladder buying their first home ?

Pleaseaddcaffine · 17/01/2021 11:47

Just realised your married! Then yes your liable for the stamp unless your dh doesn't have another home. It's to cut off a loophole.
If you were financially seperate and can prove it then your not liable eg divorcing. Or if the property ie second home is actively listed for sale at time of purchase I think.

Lazypuppy · 17/01/2021 11:53

Yep it gets paid at the time of purchase all in one go, your solicitor normally does it from the funds you transfer.

Why is your dh staying on deeds of another property? Is it worth it when its gonna cost you an extra £10k?

CarrotPuff · 17/01/2021 11:54

I don't think it matters what your DH owns if he's not on the deeds. It's a first property for you, but maybe get some advice on that.

Your calculation is still way off. Even if you have to pay extra 3% for second home, it still comes to £6,250, so half of what you put in your OP.

Original poster
HibiscusPurple · 17/01/2021 11:55

@Berthatydfil

You aren’t a first time buyer though are you? You and your husband have a house /home so you are buying a second home as a holiday home or investment/rental property. Why do you think you should be treated the same as people just starting out on the property ladder buying their first home ?
I am a first time buyer. I have never owned a home. I have rented since I left home.
OP posts:
Original poster
HibiscusPurple · 17/01/2021 11:56

@Lazypuppy

Yep it gets paid at the time of purchase all in one go, your solicitor normally does it from the funds you transfer.

Why is your dh staying on deeds of another property? Is it worth it when its gonna cost you an extra £10k?

He can't get off the deeds as the other party fails the affordability check, which is ironic.
OP posts:
Original poster
HibiscusPurple · 17/01/2021 11:56

@CarrotPuff

I don't think it matters what your DH owns if he's not on the deeds. It's a first property for you, but maybe get some advice on that.

Your calculation is still way off. Even if you have to pay extra 3% for second home, it still comes to £6,250, so half of what you put in your OP.

The 'second home' tax is 5% on the entire purchase price, isn't it?
OP posts:
Spinner12345 · 17/01/2021 11:57

It’s a bit frustrating because once you buy this house you’ll benefit from it being your main residence which you won’t pay the higher rate of SDLT on i.e. when you sell the house you’re currently buying it’ll be treated as a disposal of your main residence and you’ll pay the normal rate of SDLT on your next house to live in. Look at the sums and it might be cheaper to buy something really small for now and then sell (you do have to live in it though). It wouldn’t matter if you weren’t married either (as my OH found to his peril)

boobot1 · 17/01/2021 11:59

I don't think that applies if the home your buying is going to be the main residence

Original poster
HibiscusPurple · 17/01/2021 12:00

How can someone's "main residence" be one they haven't lived in for years and years? DH hasn't set foot in the other house for over a decade.

OP posts:
CarrotPuff · 17/01/2021 12:00

Sorry , you might be right.

It is a lot of money, but if your DH is renting the other house out it might be worth it in the long run. Doesn't really help you now though.

daisypond · 17/01/2021 12:02

You’re not a first time buyer. You are married and your DH owns a house, and assets in marriage are shared.

Pleaseaddcaffine · 17/01/2021 12:02

I'd chevk with a financial advisor and they can confirm or a solicitor. They should be able to advise you.

Original poster
HibiscusPurple · 17/01/2021 12:02

@CarrotPuff

Sorry , you might be right.

It is a lot of money, but if your DH is renting the other house out it might be worth it in the long run. Doesn't really help you now though.

He's not renting it out. The other person he bought it with still lives there. The other person pays the full mortgage by himself, and has done for over a decade.
OP posts:
Original poster
HibiscusPurple · 17/01/2021 12:04

@daisypond

You’re not a first time buyer. You are married and your DH owns a house, and assets in marriage are shared.
DH may be named on the deeds/mortgage but he hasn't contributed to the mortgage for over a decade. I am quite sure that when the time came to sell, the other party would have an excellent case for keeping 100% of whatever profits there were.

(Ironically, the house has not gone up in value but that's a story for another time.)

OP posts:
boobot1 · 17/01/2021 12:05

This may help

I am a first time buyer but need to pay stamp duty - can't believe it's so high
FairyontopofthetreeBatman · 17/01/2021 12:06

If the other person fails the affordability check the the house will have to be sold. It’s all well and good helping someone out like that, but would have have done it if he knew upfront it was goofing to cost him £9,500?

Original poster
HibiscusPurple · 17/01/2021 12:10

@FairyontopofthetreeBatman

If the other person fails the affordability check the the house will have to be sold. It’s all well and good helping someone out like that, but would have have done it if he knew upfront it was goofing to cost him £9,500?
They were two young, daft lads who thought it would be a good idea to buy a house together. It didn’t work and DH moved out after a year. The other bloke has been paying the mortgage by himself for all that time. Yet ridiculously, he actually fails the affordability check for taking on 100% of the mortgage by himself. It’s a nonsense!
OP posts:
Spinner12345 · 17/01/2021 12:12

It’s to stop people buying a BTL as their first property and benefitting from the normal rate of stamp duty and then buying a home to live in afterwards and still being charged the same rate as property 1. It then resolves itself on later purchases when you sell the house you’re living in and HMRC recognise you’ve probably been charged the higher rate previously (depending on when the purchase was). It’s just unfortunate your husband bought when stamp duty rules were different so he couldn’t have planned for this