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Stamp duty

16
Posted 14th Mar
Not sure I can ask this on the discussion?

My parents are moving from a house to a bungalow as my Mum had a stroke and is deaf and blind and my Dad is becoming frail.
The bungalow is the same price as the house they are selling but what make it tight is the stamp duty. Does anyone know of any stamp duty relief? The move is necessary for quality of life not any other reason.
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I'm pretty sure there is no stamp duty relief.

What is the price of the bungalow and how much is the stamp duty?

The bungalow that they are buying, how long has it been on the market? Due to everything that is happening in the world right now I don't think a lot of people would be moving, you could try negotiating the price, which means the stamp duty would be less.
What is the value of the properties? I can't imagine that the stamp duty is anything significant when you consider all the other costs involved.

Sorry to hear of their situation, I hope all works out well.
Edited by: "Benjimoron" 14th Mar
They live in the South and although the house is worth a lot that is only because they have owned the house since 1981. The stamp duty equates to about 21k !!
Ok fair enough, about £600k from memory then. Nothing one can do as far as I know, best of luck.
Can the house not be in the name of the other so it’s classed as a first time purchase meaning no stamp?
nrackham7614/03/2020 12:27

Can the house not be in the name of the other so it’s classed as a first t …Can the house not be in the name of the other so it’s classed as a first time purchase meaning no stamp?


No first time buyer relief if property purchase price is above £500,000.
balde14/03/2020 10:36

They live in the South and although the house is worth a lot that is only …They live in the South and although the house is worth a lot that is only because they have owned the house since 1981. The stamp duty equates to about 21k !!


You don't pay stamp duty on the property you're selling.
Edited by: "MrFootLongHotdogInventor" 14th Mar
MrFootLongHotdogInventor14/03/2020 13:14

You don't pay stamp duty on the property you're selling.


The op did say the new property was the same price though aka +21k extra in stamp duty
nrackham7614/03/2020 12:27

Can the house not be in the name of the other so it’s classed as a first t …Can the house not be in the name of the other so it’s classed as a first time purchase meaning no stamp?


I'm sure it'd be in both their names anyway surely? I think they've been clever enough to avoid people abusing the offer using this tactic.
Benjimoron14/03/2020 13:33

I'm sure it'd be in both their names anyway surely? I think they've been …I'm sure it'd be in both their names anyway surely? I think they've been clever enough to avoid people abusing the offer using this tactic.


Absolutely not, my home is in my name and we recently purchased (our right) a property in my wife’s name (first purchase without stamp duty) for leasing. Completely acceptable - the government cannot limit the first time purchase to per couple - wouldn’t be fair especially when it comes to separation -
If the purchase is in both names then effectively this counts as a first purchase for both as both owners have a percentage in property equity. The way round this is the then purchasing as a company which is the lowest rate - then you claim the duties back as company expenditure. This is what I did with my factory.
MrFootLongHotdogInventor14/03/2020 12:39

No first time buyer relief if property purchase price is above £500,000.


Relief is below
MrFootLongHotdogInventor14/03/2020 12:39

No first time buyer relief if property purchase price is above £500,000.


Hi pal,
You misread, it’s up to £500,000

Imagine if the exemption was for the well off only purchasing houses with a value in excess of half a million:)
nrackham7614/03/2020 13:45

Relief is below Hi pal, You misread, it’s up to £500,000Imagine if the ex …Relief is below Hi pal, You misread, it’s up to £500,000Imagine if the exemption was for the well off only purchasing houses with a value in excess of half a million:)


That's what I meant, if you're buying a house above £500,000 then you don't get the stamp duty first time buyer relief.
MrFootLongHotdogInventor14/03/2020 13:56

That's what I meant, if you're buying a house above £500,000 then you …That's what I meant, if you're buying a house above £500,000 then you don't get the stamp duty first time buyer relief.


Ah ok ok, mis read
nrackham7614/03/2020 13:44

Absolutely not, my home is in my name and we recently purchased (our …Absolutely not, my home is in my name and we recently purchased (our right) a property in my wife’s name (first purchase without stamp duty) for leasing. Completely acceptable - the government cannot limit the first time purchase to per couple - wouldn’t be fair especially when it comes to separation - If the purchase is in both names then effectively this counts as a first purchase for both as both owners have a percentage in property equity. The way round this is the then purchasing as a company which is the lowest rate - then you claim the duties back as company expenditure. This is what I did with my factory.


But married couples have to pay the 3% stamp duty surcharge when buying additional properties.
OP, there is no stamp duty relief for your parents, the best solution would be to find a property and offer a price that with stamp duty added would be covered by the price attained from the sale of their house.
Could I just add that reading your parents health, would a bungalow best suit them?
I can understand one level living, but would a garden become a burden and upkeep of the exterior etc. Perhaps a nice 2 bed apartment with direct access to a communal garden might be an idea?
Yes, they might have to pay yearly service charges, but the property might be cheaper than a bungalow and less upkeep in the future. Just an idea, but thinking about future proofing and perhaps freeing up a bit of cash at the same time.
Thanks guys for all the help, I feared this would be the answer.
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