The Lemon Fool

Hi All

I used to be a regular lurker and occasional poster at 'the other place' under a similar name. And now I have one of those open questions, that is far better answered by a group than by google, so I''m back again for advice please.

We are planning to buy a house quite a distance from our current location. For a number of reasons we will be buying this before we put our old house on the market.

Apart from the higher rate stamp duty (that I should be able to reclaim), and capital gains is there anything else that I need to be aware of and plan for, especially anything that might be time sensitive?

Additional info in case it is relevant:
- Both homes will be 'main residences'
- An additional family member (daughter) will be staying in the old house until she gets her own place (for months not years..)
- no mortgages involved

Thanks
Lottie

Lottie wrote:Hi All
-------------------------
Additional info in case it is relevant:
- Both homes will be 'main residences'
- An additional family member (daughter) will be staying in the old house until she gets her own place (for months not years.)
- no mortgages involved
Thanks
Lottie

You cannot have two main residences simultaneously and there is an now just an 18 month overlap before CGT rears its head.

So do not let the 'for months' figure become too large in case the sale falls through; happened to me over a severe winter and the market dried up completely but the CGT overlap was then 3 years.

Both properties will need to be insured and some insurers have no claims discounts that will apply to just one property.

supremetwo wrote:You cannot have two main residences simultaneously .

OOI...

Lottie said "we" - so presumably a partner in life is involved.

could they not each have a "main residence" until the original home is sold hence maintaining that status ?

The daughter is described as additional so isn't one of "we" I thus take it.

didds

didds wrote:

supremetwo wrote:You cannot have two main residences simultaneously .

OOI...

Lottie said "we" - so presumably a partner in life is involved. ...

Lottie also said Apart from ... capital gains is there anything else that I need to be aware of and plan for ... so I don't think CGT comments are being requested.

Married couples only get one main residence allowance. You get 2 years after the purchase of a second property in which to decide which is to be your main residence and from what date. (A couple both owning a separate property before getting married have 2 years to choose which will be the main residence thereafter). A house that is let out cannot be the main residence.

Thanks all,

It doesn't sound as if there are too many things to worry about, apart from the additional costs of keeping two properties going.(gulp!)

We aim to get our house sold within months so hopefully within any CGT and SDLT limits.
We are prepared to price realistically for a quick sale when we are ready. Although I know even then there are no guarantees...

Quick follow up questions if I may:
Will I have to pay full council tax on both properties?
Has anyone reclaimed the second property stamp duty? How complex or drawn out a process is it?

Thanks again.
Lottie.

Lottie wrote:Thanks all,

It doesn't sound as if there are too many things to worry about, apart from the additional costs of keeping two properties going.(gulp!)

We aim to get our house sold within months so hopefully within any CGT and SDLT limits.
We are prepared to price realistically for a quick sale when we are ready. Although I know even then there are no guarantees...

Quick follow up questions if I may:
Will I have to pay full council tax on both properties?
Has anyone reclaimed the second property stamp duty? How complex or drawn out a process is it?

Thanks again.
Lottie.

Council tax - generally, you will have to pay but some Councils offer a discount.
https://www.gov.uk/council-tax/second-h ... properties

supremetwo wrote:Council tax - generally, you will have to pay but some Councils offer a discount.

I assume you and spouse will actually reside in the new place but may visit your daughter from time to time. If she is the sole occupier your daughter may claim the single-occupant discount on the old place - or a lower charge if she is a minor or a student. Look in general area of S2's link: the occupier has primary responsibility for CT with the owner being one of the fallback options.

It is useful to bear in mind (particularly when it comes to CGT) that the residence of a married couple is where they actually live and base their domestic lives. You need to look into the rules about "main residence" and available reliefs only when you have more than one actual residence available. Owning a property does not make it a residence .

Cheers!

Thanks.

Yes, The plan is that we will exchange on the new house, put the old house on the market, and I'll hand in my notice.

After that we will move to the new one and my daughter will remain in the old one until she finds a place of her own (Smaller than the old family home). Until I have served my notice I will be stopping with her a couple of nights a week. My husband is already retired and will be in the new home.

Hopefully we will sell before the Stamp Duty or Capital Gains limits... If not I'll put her rent up

Thanks,
Lottie.