Buy To Let Solicitors, Derby, Nottingham & Nationwide, Advice on SDLT issues

This page give Buy To Let Purchasers some information on SDLT when purchasing a Buy To Let Property

I am a First Time Buyer since I own no other property. Will I obtain the FTB allowance which is up to £300,000 on this purchase?

Answer – The FTB allowance up to £300,000 only applies if you are moving into the property on completion of the purchase or intend to do so within a short time. In these circumstances you would pay the standard rate of SDLT which is 2% between £125,000 and £250,000 and 5% over £250,000.

You would not however pay the Second Home Charge since this is your only property.

I own other property. Do I have to pay the Second Home Charge if I buy a Buy To Let Property?

Answer – Yes you would have to pay the Second Home Charge which is 3% on the total purchase price in the following circumstances. The property you purchase must have a value in excess of £40,000. It is important to note that it is the total gross value of the property. If you bought, for instance a property worth £50,000 in equal shares (whereby your share would be £25,000) it is the £50,000 that is the relevant figure.

You must then have an interest in your existing property of over £40,000. Please note that there is a difference in treatment between the property you are purchasing and your existing property. In your existing property it is your interest that counts not the total value. By way of example if your existing property was worth £100,000 and you own a one third share since that is below the £40,000 limit then you would not pay SDLT property that you have bought.

Please note that in calculating values it is the gross value that is relevant and mortgaes are disregarded.

I am purchasing a property through a limited company. What SDLT do I pay?

Answer – In all circumstances you would have to pay SDLT at the standard rate which is 2% between £125,000 and £250,000 and 5% over that amount. In addition you will in all circumstances will have to pay the 3% charge on the total value fo the property.

WE MUST ALSO WARN YOU THAT IN CERTAIN CIRCUMSTANCES IF YOU BUY A PROPERTY AT OVER £500,000 THROUGH A LIMITED COMPANY THEN YOU WOULD PAY SDLT AT 15% ON THE TOTAL AMOUNT. 

I own a Buy To Let property through a limited company and I want to buy a property to live in. In those circumstances what SDLT would I pay on the property I buy?

Answer – Ownership of a property through a limited company is disregarded if you are buying a personal property. You would therefor be able to get FTB allowance if you are planning to live in it yourself or you would pay SDLT at the standard rate as you are buying it as a Buy To Let.

This charge is three Percent of the purchase price. It is in addition to the normal rates for SDLT of 2% between £125,000 and £250,000 and 5% over £250,000. In certain circumstances if you buy for over £500,000 you will pay SDLT at 15% of the purchase price.

You will pay the Second Home Charge even if this is the first property that the limited company is buying.

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For a payment of £70.00 including VAT upon instruction, you can rest assured that should your conveyancing transaction fall through, for whatever reason, you will not be charged any solicitors fees. This fee is payable per transaction and therefore if you had a sale and purchase with us you would need to pay £70.00 for each.

Should your sale or purchase fall through without having taken the No Move/No Fee option we will charge a fee as is reasonable for the amount of work done by that stage.

A discount of £20.00 plus VAT (£24.00) is available on all transactions if you are one of the following:

First Time Buyer
Cash Buyer
Buy to let Landlord
Previous client (where we acted for over the last 3 years)
If you qualify for this discount, simply deduct this amount from your total online quote and advise us of your circumstances on instruction.

Terms and Conditions

Only one deduction per transaction (e.g if both cash buyer and buy to let landlord we deduct £24.00).

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