Jump to content

Recommended Posts

Hi Everyone, 


I would really appreciate a bit of advice, as I am looking to get into property investment for the first time and I feel like my head is in a spin, with all the information available and deciding which strategy is best for myself. I currently own a 3 bed semi detached house as my residential property, on my own, which is valued in the region of £145k, however in the near future I am looking to purchase a new residential property with my girlfriend, but I would like to keep my current property but change the mortgage to BTL. Just to add another complexity to it, I was hoping to do this in the form of a LTD company, as I fall within the higher tax bracket and I would like to use any future rental incomes to build within a company format and reduce my tax bill which should allow for a quicker accumulation of my next deposit. So my questions are:


1. Will I be able to avoid SDLT for my future residential property as this will be my first home, even though I would be keeping my current house as a BTL?

2. If that was the case, would transferring my current property to a BTL within a company trigger the 3% + 5% SDLT surcharge (£4,750)?

3. Do you have to pay for the legal costs such as searches etc when transferring into a company if you already own the property? Are there any other costs associated to transferring to a ltd?



Any advice on this would be greatly appreciated.




Link to post



Question one, if you still own the current house when you buy the next one then yes you will face the extra 3% on the whole purchase, not just your share. You can claim this back if you sell the current house within 3 years of buying the new one. This may change if you have even sold a private residence and buy the new one before November 2018.


Question 2, when you transfer the current house to a company (possibly before buying the new one to avoid the extra 3% SDLT on new house) then SDLT due on full market value at extra 3% rates.



Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...