Personal Finance & Money Asked by Datacrawler on April 10, 2021
I am about to purchase as house which costs less than 400k in the UK under a leasehold over 110 years. Currently, they say there are no stamp duty rates applying until the end of June 2021. The house is going to be my main residence (flat to live in) and not a buy to let or an alternative place to live (e.g holidays etc). My main residence at the moment is a flat I am renting privately from a landlord.
I am a bit confused as I am aware that I have share of ownership in some cases and a flat for which my grandmother owns the usufruct. All those are based in South Europe (EU).
A solicitor told me that I would have to pay 12k approximately.
Just to recap in bullets:
Does anyone have experience on this matter?
You’re not replacing your main residence, because your current main residence is rented not owned. And your part-ownership of other properties does mean that you’re liable for the extra 3% — it doesn’t matter that they’re not in the UK.
Note also that unless you’re already pretty far along, you’re unlikely to be able to complete the purchase by 30 June, so you’ll only benefit from the £250,000 nil-rate band that’s lasting until 30 September, and have £7,500 (5% of £150K) to pay on a £400K purchase as well as the £12K for the 3% second home surcharge. Leasehold purchases with a mortgage typically take four months from agreeing the purchase with the seller to completion, and things are going slower than normal at present since there are so many people trying to beat the deadline.
Answered by Mike Scott on April 10, 2021
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