New Stamp Duty Threshold

[SaffaQueen]

We are looking to buy a larger property having outgrown our current one - we saw a property recently that we are keen on and want to offer on pretty soon. Its in a high demand area, properties don't often come up in our range so we want to secure it, with the benefit of the new stamp duty rates.

Luckily we don't need to sell first, but the intention is to sell our current property rather than let out - we were hoping to both buy & sell before 31 March 2021, although not necessarily in a chain (as our current property needs some work before we can put on the market). We'd then reclaim the additional second property stamp duty (within 3 years).

Just spoke to our mortgage advisor and he has mentioned to us that if we don't sell as part of a chain, the new stamp duty thresholds don't apply and we'd be subject to the old thresholds!!??

Looking at the Money Advice Services/Gov.uk websites they say the new thresholds apply to first time and next time buyers - no mention of needing to sell in a chain. Is this a misunderstanding?

Anybody currently underway with a purchase who can confirm?

Thanks

I think your mortgage advisor is incorrect.

Can you ask them to clarify in more detail what they mean by "sell as part of a chain?"

Your mortgage adviser doesn’t make sense. The stamp duty holiday applies to everyone, including buy-to-lets and second homes.

You would need to pay the additional 3% stamp duty for a second home if you buy before selling your previous home. However the first 500k you would only be paying 3% on. you can then claim back the difference as long as your first home is sold within three years.

Is he saying that if you didn’t sell your current house before March 2021 you wouldn’t be able to get the full amount back and the refund would be comparing what you paid vs what would have been paid on the old rates? Just clarifying, but I have no idea if that’s true or not.

Thanks - above is in line with what we'd thought. We've gone back to him on this to clarify.
I think he is mistaken - we must have misunderstood him.

Caused an unexpected mini-panic this morning!