Obtaining a Mortgage on a second home

Acquisition of a mortgage for a secondary residence

Well, our housing finance experts explain everything. They would need to secure cash for the down payment so this can be done by obtaining a buy to let mortgage on the current property. You can obtain a mortgage on a second property or holiday home if it is to your advantage and is not rented out.

From April 1, 2016, you will have to pay an incremental 3% stamp duty if you buy an incremental house.

From April 1, 2016, you will have to pay an incremental 3% stamp duty if you buy an incremental house. Q. What is the 3% stamp tax supplement? A: This is a 3% charge on the stamp duty in force, as shown in the following table: Anyone who buys an auxiliary home.

This supplement also covers houses that you already own (or even partially own) are located abroad. So if you have a Skichalet in Bulgaria and buy your first house in the UK, you will still be charged the additional taxes. The new award came into force on 1 April 2016, but was first published in the Chancellor's Autumn Report 2015.

However, the 3% premium still works efficiently as a plate rate. The 3% charge, in other words, is valid for the whole sale value of the real estate. £5,000 on a house of this value and brings the aggregate amount due an eye-watering £14,000.

Then, charge 3% of the total amount and sum the two numbers. Q. What happens if the house I buy becomes my primary home? When the house you buy directly substitutes your primary domicile, you are not responsible for the 3% supplement, even if you own one or more apartments at the same with it.

However, if you replace your primary home, the last one must be discarded (i.e. sold or given away). Q. What happens if I have to buy another home before I can resell my last one? If you move out of your primary domicile (house A) but keep it and buy another primary domicile (house B), you must first add 3% stamp duty.

Indeed, if you dispose of EVERY former principal place of abode, this reimbursement will apply within 36 month, even if the real estate is leased and you have not resided in it for years. Q. What happens if I am selling my primary apartment but cannot buy another immediately? In some cases (e.g. if you return to the UK after a stay abroad), you may have to resell your primary home, but you may have to go into a "stop gap" before you can buy a new one.

The government will then provide a "grace period" of 36 month (increased by 18 month in the March budget) during which the acquisition of your next principal place of abode will NOT be subjected to the 3%urcharge. Q. What happens if I already own a real estate but buy with someone who doesn't?

A. Sadly, even if only one of you already has a house (whether you live in it or not), if you buy another together, the 3% stamp duty supplement is levied. Q. What happens if I have separated from my spouse but my name is still on the acts of our house?

This means that if you buy a house that only charges a 3% supplement based on the circumstances of your lawful partner, you do not have to do it. Q. What happens if the house I want to buy has a "grandma attachment"? "According to the new regulations, when you purchase a principal dwelling (either your first home or a substitute for a former principal dwelling) valued at 250,000 and an installation which can be sold separately in a sole operation, the stamp duty will be levied at the default rate on the aggregate value of 300,000 pounds.

Any person who has already been paying the supplement under these conditions since 1 April 2016 will receive it back. Q. What if I'm a big real estate developer? Q. Can I just refrain from mentioning to my lawyer that I already have a home? Q. What happens if I leave my possession?

There is no stamp duty on the real estate you inherit, so the 3% bonus is not applicable. But if you have an inheritance and you buy an extra house without buying it, you will be charged the uplift. As with the standard stamp duty, the 3% rate only applies to the sale of real estate.

"Stamp duty on buy-to-lease real estate will eventually make rent more costly - which in turn will affect people's capacity to make a saving towards a security bond.

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