SDLT - first property to let out

[android-fan]

Quick question on SDLT - buying a property which will be the first property in the individuals name for less than £125k. I believe no SDLT will be required to be paid, even if bought to let out (buying cash so buy to let mortgage involved). Correct?

 

[montymint]

I’d say your best bet would be to raise this with your solicitor for the purchase.

They’ll give you the best advice Tbf.

 

[Dis86]

Previous joint owned property counts, even if no longer owned. Also if a person's partner owns a property they may also not be considered a ftb

 

[android-fan]

Both the individual and their partner have never had a property in their name

 

[Freakbro]

Quick question on SDLT - buying a property which will be the first property in the individuals name for less than £125k. I believe no SDLT will be required to be paid, even if bought to let out (buying cash so buy to let mortgage involved). Correct?

Unfortunately no.

Who is a first-time buyer?​

To qualify for first-time buyers’ SDLT relief, an individual must be buying a single dwelling which they intend to be their main residence. It must also be the first dwelling that they have owned either in the UK or anywhere else in the world. If an individual has previously received or inherited a residential property or intends to use their new property as a buy-to-let investment, they will not be eligible for first-time buyers’ SDLT relief.

When a person is buying with someone else, both individuals must meet the definition of a first-time buyer to qualify for the relief. Therefore, if either of you already own a house, relief is not available. This applies regardless of whether you will become joint tenants or tenants in common.

A BTL wouldn't qualify for SDLT relief even if it is the LLs first bought property

 

[android-fan]

But as the property is under 125k then no stamp duty applicable? I understand there is no extra relief

 

[Freakbro]

But as the property is under 125k then no stamp duty applicable? I understand there is no extra relief

SDLT is a complicated area and as montymint says a solicitor would be able to answer the question fully. But, afaik, the 125k threshold is for main residence property and for BTLs you pay SDLT on the value above £40k.

 

[SpeedFreak]

This strikes me too transparent. I am buying a house for the first time. I am paying cash and have no lender to notify. A few weeks after completion having lived in it I decide to move back to my parents house and rent it out.

Edit, if this is below 125k it does not matter as the rate is nil. There is no second residential property therefore the surcharge does not apply.