Buying off plans and selling straight away

[muffin1973]

Myself and my boyfriend bought an apartment off plans nearly 18 months ago. The apartments are still not yet complete (they are estimating they'll be complete either mid-July or mid-August). In the meantime, our circumstances have changed and we are now considering moving to the UK for a year or so and were thinking of selling on the apartment once we'd completed the purchase. A friend has just told me that she has heard that if we sell within 5 years we have to pay a large amount of stamp duty??? Does anyone know is this true??

Thanks.

 

[tonka]

if you are first time buyers that is true.

 

[Vanilla]

Maybe, maybe not- if you have not already had the transfer or lease executed to you from the developer, then you may be in a position to sell on and ask the vendor to execute a transfer directly to the sub purchaser- you'll have to ask your solicitor if this is possible and you will probably have to get the consent of the developer.

 

[royrogers]

You will probably loose money on the resale as the market stands at present. However if you are willing to wait for a purchaser then you may not loose or you might have someone lined up for the sale.

 

[ClubMan]

If you buy the property (i.e. it is initially transferred into your own name) but you never live in it as an owner occupier before selling it on then I would expect that you would be liable for investor rates of stamp duty on the purchase rather than being exempt from stamp duty as an owner occupier. Your solicitor may be able to advise you on this.

 

[muffin1973]

We signed the contracts and paid over the deposit at the start of last year but haven't completed yet. OK say if we drawdown the mortgage and move into the apartment and live there for a few months, would that make a difference? We are first time buyers...

 

[ClubMan]

If you can buy the house, genuinely live in it and then eventually sell it on you would not be subject to stamp duty on the purchase or Capital Gains Tax on the resale. However I don't know what, if any, time limit applies in this case to determine whether or not Revenue will accept your bona fides as an owner occupier. Perhaps they can clarify?