To stay on a holiday park for a long holiday to avoid this stamp duty

[firefirefire]

Hello
We are selling our house and as we have a rental property we have found out we'd be expected to pay about £22k in stamp duty

We are relocating to the other end of the country

Because of this stamp duty we are now selling our rental property too. No way are we giving £22k in stamp duty away. We are only average earners.

To avoid the extra stamp duty one house must complete before the other so we are only the owners of 1 property when we buy our new house.

Our main house is going through quicker so we think we are just going to forget about an onward purchase until the money is in the bank from both houses

Which leads me to ask, just how awful will it be to stay in a holiday park for a month or so whilst we find a new house to relocate to?

We have 5 children

Not one part of us can face paying £22k in stamp duty. It's criminal

I take it the rental property isn't in the right location or size to occupy for a month or two?

No, much too small for us (only 2 bedrooms)
Location would be fine.

You already have both properties and when you bought the second property the extra stamp duty rules hadn't come in is that correct?

In that case as far as I'm aware (being in a similar situation) you don't have to pay the extra stamp duty as you already have the two properties. That's my understanding anyway, might just be worth looking into a bit more.

I thought your main residential property was exempt?

www.google.com/amp/s/amp.theguardian.com/money/2016/mar/31/stamp-duty-second-homes-what-will-i-pay

Have a look at the final paragraph

If you're swapping primary residence for primary residence (completing on the same day) then no second home stamp duty to pay.

If you are buying new primary residence before you have sold current primary residence (and you still have a rental property) then the second home stamp duty will have to be paid, but providing you sell your (previous) primary residence within 36 months, you get the stamp duty paid refunded.

That's my reading of this, anyway [https://www.gov.uk/stamp-duty-land-tax/residential-property-rates]]

Don't forget CGT on the rental...

Have rules changed in last 3 years? As we sold primary residence and bought another, whilst having a rental we still own. No extra stamp duty paid ...

That was a much better explanation of what I was attempting to say

Oh wow maybe our mortgage advisor has told us the totally wrong thing then!!!!

We bought the BTL property 5 years ago and our current home 4 years ago.

We'd be moving from one primary residence to another yeah..

PP is correct - moving from one primary residence to another means you just pay the standard stamp duty. You'd pay extra if you were buying another BTL or holiday home. We moved last year, we have some BTL properties from years ago & we paid standard stamp duty 👍🏻

This is great news!!!

Ps. Our mortgage advisor has done an agreement in principle for us taking into account £22k stamp duty! Can't believe he doesn't know these things in his position...quite worrying really

Must be a pretty expensive house if you thought you'd be paying £22k in stamp duty, even at the higher rate. Anyway, I'd be finding a new mortgage advisor if that was me, that's pretty shocking!

Oh just ignore me, I'm tired, it's been a long weekend. I guess it's probably around a 400k house, is that right? I'd definitely be having words with your mortgage advisor though.

I agree find a new mortgage advisor!!

Haha I know the feeling. Yes it's for up to £400k . Going to really moan about him because it's so bad!

I had to pay stamp duty because I bought my new house, before selling the old house. Because it sold within the allowable time frame, I got the stamp duty refunded.

Will you have to pay CGT on the profit from the sale of the BTL flat?

Yes we will have to pay CGT but it shouldn't be too much as we haven't owned it that long and we did live in it previously.