Hypothetical question about buying the flat next door

[onlychildhamster]

I own a 2 bed London flat and its on the second floor (top floor) in a 1930s block of 6 flats (2 flats on each floor). If I buy the flat next door but continue living in my current flat- using the rooms in the second flat (which has the same layout) as home office, guest room, playroom for future child etc, would the second flat be classified as an empty home?

www.barnet.gov.uk/housing/private-housing/empty-properties

I am aware I would have to pay double council tax bills and service charge but I think it would still be cheaper than buying a whole house of the same size in the same area (and I like my area and my flat very much), especially if the cost of flats really dip. Also if I find it financially difficult, i can still rent out the second flat which I wouldn't be able to do if I bought a whole house and I can also rent out the second flat in later life for retirement income. Hence for all those reasons, I would not be combining the flats (don't think its even allowed and doesn't make financial sense anyway).

But if its classified as an empty home, that would not be good. I would be using that flat daily since my study would be there and I would be keeping stuff there but of course the main bedrooms/living & dining space would be in my flat.

Of course this is a hypothetical question so please be kind :)

LTB (and buy next door)!

I've heard rumours of people doing it to get into school catchment areas on here before so why not a tactic to avoid tax?

I think it would count as a second property. I think the switching main residence can work if you own two houses. You sell the house you live in so no capital gains. Then you move to the other house which then becomes your main residence. And you have to live their for I think 3 years or it might be five. A neighbour of ours did it a few years ago and explained at the time but I forget the details.

@Rollercoaster1920 I actually got the idea from someone whose flat I viewed. She bought a tiny 2 bed flat next to Fortismere but kept her 4 bed house in Wood Green. She was a VP in the financial sector (and a single parent) but managed to pay all taxes and bills on both houses as she worked out it was cheaper than private school for her daughter. She lost her job and therefore had to sell the flat but was moving back to the 4 bed house (and her child could get the bus to fortismere) so it wasn't a terrible situation to be in.

The second bedroom for that flat was too small if not we would have bought it.

@Rollercoaster1920 and the 4 bed house in wood green was empty. Her daughter went back to the big house every week for piano and violion lessons and they kept all their stuff there. They had a grand piano at the Wood Green house!

The laws on this changed last year. You have to nominate one of the properties as a second property within 2 years of owning 2 properties.

If you sell one your main one and move into your second you still pay CGT when you sell the second later on.

I would knock through in such a way it can be boarded up easily when you want to sell

I believe it's something along these lines. Buy 2nd home 2021. Rent out/leave empty for 10 years. Then sell main home and move into (now sole) other home for 10 years. Capital gains will be worked out as a proportion e.g.10/20ths of gain. Then you have both you and your husband's CGT allowances (pretty paltry - last time I looked was around £11,000 per person)

@20questions

I believe it's something along these lines. Buy 2nd home 2021. Rent out/leave empty for 10 years. Then sell main home and move into (now sole) other home for 10 years. Capital gains will be worked out as a proportion e.g.10/20ths of gain. Then you have both you and your husband's CGT allowances (pretty paltry - last time I looked was around £11,000 per person)

Yes that’s it. It’s logged at the land registry as the second home so you can’t just pretend it’s not even though you sold your main one and moved into the second.

Of course you can have two homes and sell one but they only give you the full value of your gain for your main first residence as at one point you owned two. Within 2 years of owning two you have to nominate which is the main residence. This shows on the land registry. Move into the second and it’s still your second.