No Stamp Duty upto 250K

What counts as a "first-time buyer" for the exemption of stamp duty below

250K?

Eg1 owned a house 15 years ago, but sold 10 years ago and haven't owned one since?

or eg2 spouse1 owns current house, immediately move but spouse2 buys next house?

etc?

Reply to
John
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On one news programme I heard, it was 'anyone who has never been on the Land Register'.

Reply to
Norman Wells

And as they don't keep DoB or any other extra data against people's names, how are they going to check that (unless you have an absolutely unique name, which sadly I do)

tim

Reply to
tim....

In message , tim.... writes

A query on the radio this evening was "I own our house (not my wife). What happens if we jointly buy our next house?"

Reply to
Ian Jackson

Hi John,

Im thinking about possibly studying for mortgage advising so anything I post must be clarified as respectfully Im not qualified but here goes....

Stamp duty land tax (SDLT) is levied on all transactions over 125,000 and is paid by the buyer as you probably know.

It is calculated on a sliding scale according to the purchase price as follows:

stamp duty land tax (rates effective from April 2006)

Purchase price ()

0125,000 Nil 125,001250,000 @ 1% 250,001500,000 @ 3% over 500,000 @ 4%

No stamp duty is payable on zero carbon homes purchased for 500,000 or less.

As far as the Chartered Institute of insurance is concerned (they give out qualifications CF1 and CF6 for mortgage practitioning and advice) they quote

"First-time buyers differ from other buyers in that they do not have any profit from a previous house sale to bring to the current transaction."

Therefore purely going by that you would not be a first time buyer as you are likely to have had a profit from the previous property but on the flipside I think the golden question is how can the lender prove you are not a 1st time buyer? or where is the evidence that you are not a first time buyer? Surely if theres no proof that your not a FTB then other than you, who's to say your not? If you can clearly satisfy these questions then you have your answer. whether an aspect of fraud is in question or not is open for debate as I dont know if a time scale affects this secondly if the lender cant prove your not a first time buyer is it a crime?? (interesting?!)

As for the bit about your partner there are different mortgages you can get depending on if your married, co-habitee etc and depending on your marital status I think (but dont quote me) may possibly allow the other half to get SDLT exemption . I will look into it and get back to you with what I find as I want to learn more about this topic and if anyone would shed light on this that would be great.

In the mean time I need to get some kip...zzz zzz

Reply to
Cheekychapsta

This should answer most of your questions...

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Reply to
Martin

< snip >

If you're serious, don't even think about trying to become an "adviser".

Reply to
Martin

Not eligible.

Eligible.

The gist of it is whether someone has ever owned property. The corner cases are more likely to be people who've owned shares in property funds such as REITs.

FoFP

Reply to
M Holmes

These are the kinds of cases where the taxman catches up a decade later, then wants the tax, the fine, and generous interest on both paid for the whole ten yers.

FoFP

Reply to
M Holmes

I can see older people downsizing being the main beneficiaries of this pre-election bribe. It was usual in the past (eg 60's-70s) for the family house be owned solely by the man as it was often bought when the wife wasn't earning. So when the kids have left and they want to downsize - just buy the new house in the wife's name!

Reply to
Andy Pandy

Trouble is, you're trying to attach a lender's definition to the new budget rule. They are not the same rule and may not have the same definition. In fact, I think you'll find that even lenders will vary on what they deem to be first time buyers.

Rob Graham

Reply to
Rob Graham

I would have thought that the term "First Time Buyer" was reasonably self-explanatory and not really subject to disagreement - someone who has not bought before and is making their first purchase (of the class of goods). So in terms of housing, a first time buyer would be someone who has never before, either on their own or jointly with someone else, purchased a house. The only scope I see for interpretation is where someone who already owns (or has in the past owned) a house which they did not themselves purchase[1], purchases one for the first time.

[1] eg. having inherited it or been given it as a gift.
Reply to
Graham Murray

"Graham Murray" wrote

What about a couple buying jointly, one for the first time and the other having purchased previously?

Reply to
Tim

In message , Tim writes

Worth a read: >

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Reply to
Ian Jackson

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