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UK stamp duty for first time expat buyer (buying buy to let)

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  1. #1

    UK stamp duty for first time expat buyer (buying buy to let)

    I am planning to buy a UK property this year. This will be my first property. I would naturally like to take advantage of the lower rate of stamp duty for first time buyers, however it seems these rates do not apply for Buy To Let.

    The question is, as a UK expat buying their first UK investment property, is there any way to access the lower stamp duty rates offered to first time buyers? Any advice or insight much appreciated.


  2. #2

    Join Date
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    I am not sure with this particular situation nor do I know if there are any mechanism to prevent it but if you were to buy it and occupy for a short time, you might be able to avoid it. Perhaps renting it or having a family member occupy it. I used this strategy to avoid paying takes on a property I owned when I sold it and it worked well but it's always risky to play with the government especially if you have assets there. In my case, I made sure to move all my assets out of the country in case there were issues afterwards.


  3. #3

    Stamp duty cost may be the least of your cost worries...you may want to consider buying the property as a company so can then offset all the interest against income to reduce tax liability. This benefit is being eroded if you have BTL properties in your name.
    Mortgage rates are apparently significantly higher if you use a non-UK address when applying for a UK BTL mortgage and so are set up fees so do your research.
    I'm sure you have a good broker but if not i can recommend mine who i have used for 15+ years who specialises in uk expat mortgages.
    Good luck...


  4. #4

    You have to live in it as far as I’m aware.


  5. #5

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    Quote Originally Posted by Welshdragon:
    Stamp duty cost may be the least of your cost worries...you may want to consider buying the property as a company so can then offset all the interest against income to reduce tax liability. This benefit is being eroded if you have BTL properties in your name.
    Mortgage rates are apparently significantly higher if you use a non-UK address when applying for a UK BTL mortgage and so are set up fees so do your research.
    I'm sure you have a good broker but if not i can recommend mine who i have used for 15+ years who specialises in uk expat mortgages.
    Good luck...
    I'd be interested in the name of your broker.

    And any other advice you have regarding buying buy to let property in a company as an expat

  6. #6

    Join Date
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    I'm currently buying a property in the UK with my niece (who is a first time buyer). You have to be the only buyer as well (if I co-purchased, she lost the benefit on the whole property not just her half). So I suspect a company would result in the same loss.

    We have had huge difficulties with the fact that I am overseas. Originally, the plan was to co-own and co-mortgage. That didn't work (nobody would give a mortgage to an overseas buyer of my age). Then I offered to just fund my half in cash (that resulted in the loss of the stamp duty benefit and her mortgage provider would not accept that). Then we tried giving her the money and setting up a family trust to get it back if she sold it (that almost worked, but her mortgage provider will only accept if I get back my original stake and not reflect any change in house prices AND we lost the stamp duty benefit???). So now we are on the strategy of me lending her the money and having a second charge on the property AND the trust (privately). So far so good.

    Her solicitors are the worst pain in the neck to deal with I have ever come across. So choose your solicitors well and find out how flexible they are (the solicitors basically said they would tell the inland revenue that I was part of the purchase, even though I was not going to be an owner, and niece would lose the stamp duty benefit!). If you get a bunch of assholes like ours, you will have to lie to them too.


  7. #7

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    Quote Originally Posted by HK_Katherine:
    I'm currently buying a property in the UK with my niece (who is a first time buyer). You have to be the only buyer as well (if I co-purchased, she lost the benefit on the whole property not just her half). So I suspect a company would result in the same loss.We have had huge difficulties with the fact that I am overseas. Originally, the plan was to co-own and co-mortgage. That didn't work (nobody would give a mortgage to an overseas buyer of my age). Then I offered to just fund my half in cash (that resulted in the loss of the stamp duty benefit and her mortgage provider would not accept that). Then we tried giving her the money and setting up a family trust to get it back if she sold it (that almost worked, but her mortgage provider will only accept if I get back my original stake and not reflect any change in house prices AND we lost the stamp duty benefit???). So now we are on the strategy of me lending her the money and having a second charge on the property AND the trust (privately). So far so good.Her solicitors are the worst pain in the neck to deal with I have ever come across. So choose your solicitors well and find out how flexible they are (the solicitors basically said they would tell the inland revenue that I was part of the purchase, even though I was not going to be an owner, and niece would lose the stamp duty benefit!). If you get a bunch of assholes like ours, you will have to lie to them too.
    What a bunch of fools - solicitors are meant to act in the best interests of their clients!

  8. #8

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    Original Post Deleted
    Given I was not going to be an owner of the property, it was a stretch to say it breached the law. I think if its a stretch then hardly the duty of the solicitor to point it out to the UK Gov!