From 1 April 2016 anyone buying a second home for any reason will pay a higher rate of stamp duty than someone buying a property which will be their main home.
What is stamp duty?
Stamp duty – or more precisely stamp duty land tax (SDLT) – is a tax paid by homebuyers when they buy property or land. On your main home the tax is paid if the purchase price is over £125,000. The amount paid is assessed on a tiered basis.
How much stamp duty will I pay on my new home?
You can find out exactly how much you need to pay using a stamp duty calculator like this one.
To give you an idea, on a house costing £100,000 that you plan to live in there would be no bill to pay. On a £200,000 property you would pay £1,500, and if you were spending £350,000 on a new home you would pay £7,500. Someone buying a £1m home would face a bill of £43,750.
Any second homes attract a higher rate.
What counts as a second home?
Anything other than your main residence – it could be a holiday let, a property bought as an investment or somewhere you are helping another family member to buy.
This surcharge will also apply even if the main home you currently own is overseas.
I plan on buying a second home. How much extra stamp duty will I pay?
You will pay the duty on any property costing £40,000 or more. For each tier you would pay a rate three percentage points higher.
Take a look at the calculator and full post here
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A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Financial Conduct Authority does not regulate most forms of buy to let mortgage.