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Madhu Pal
Madhu Pal,
Category: Property Law
Satisfied Customers: 359
Experience:  Solicitor at HPLP Solicitors
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I own a property that I used to live in, but it is now

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Hello. I own a property that I used to live in, but it is now rented out as I had to move jobs. The house at that time was in negative equity with a Northern Rock mortgage. The only way I could accomplish this was to rent it out and live in rented accommodation myself.
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: I am currently buying a house with my now husband. Our main residence is a rented house and the new house will replace this. Am I liable for the higher rate of stamp duty? Haven't filed paperwork yet and my conveyancer doesn't know the answer saying its a grey area!! HMRC stamp duty helpline say I might be and I might not be...it's a grey area...write to us!!!
JA: Where is the house located?
Customer: The rented out house is in Halesowen, West Mids. The one we are buying is in Greater Manchester
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Just that the rented house is purely owned by me and in my name as is the mortgage

Good afternoon, under the circumstances yes you would be liable to pay the higher rate of stamp duty. The relief only applies if you are replacing your main residence - however does not apply to rented homes only owned homes. As you will still own the rented house, the new property would be classed as your second property so the higher rate would apply. Hope this helps?

Madhu Pal and 3 other Property Law Specialists are ready to help you
Customer: replied 2 months ago.
Thanks. So although the rented is regarded as my main residence am I right in terms of being unable to claim it back- the house is on the market - because I haven’t lived there for 10 years? In other words it’s classed as my main residence to take the money off me but not my main residence for the purpose of claiming back when it’s sold? Thanks

The rented cannot be considered your main residence because you do not live there, you just own it. Many people own a property for investment purposes and remain living at their partners or parents or rented accommodation, so in these circumstances the property you own is not your main residence.