Podcast Summary
New stamp duty rules apply equally to individuals and companies: The new stamp duty legislation applies to all buyers, regardless of whether they purchase as individuals or through a limited company, and there are no exemptions or loopholes unless the property value is below the threshold.
The new stamp duty legislation applies to individuals and limited companies equally, with no exemptions or loopholes for multiple purchases or transferring property ownership between married couples, unless the property is worth under £40,000. Raj, a new listener to the Ask Rob and Rob podcast, asked about the applicability of the stamp duty surcharge on second properties when purchased through a limited company. Rob clarified that the surcharge applies to all buyers, regardless of whether they purchase as individuals or through a limited company. There were rumors of potential exemptions, but Rob confirmed that these rumors were unfounded. He also addressed a related question about transferring property ownership between married couples, stating that the taxman considers married couples as a single unit when it's beneficial for them. Overall, the new stamp duty legislation applies to everyone equally, and there are no ways to circumvent it unless the property value is below the threshold.
Mortgages for Property Flipping: Proceed with Caution: While mortgages for property flipping without early redemption penalties exist, they come with risks. Understand the terms and conditions before signing.
While it is possible to find mortgages without early redemption penalties for property flipping, it's generally not recommended. Ruth, a listener from Cheltenham, asked about this specific topic during the podcast. She was interested in using a mortgage instead of a bridge loan to save on costs. The hosts, Rob and Rob, confirmed that such mortgages do exist but warned against using them for flipping projects. The reason being, if the project is completed earlier than anticipated, the borrower may face penalties for repaying the loan before the agreed term. However, lenders may be lenient in certain situations. Overall, it's crucial to understand the terms and conditions of any mortgage before signing the dotted line, especially when it comes to property investing.
Considering the impact of bridging finance on future mortgages: Using bridging finance for multiple property purchases could negatively impact your ability to secure future mortgages, so carefully consider the costs and potential long-term consequences before relying on it.
Using bridging finance for multiple property purchases may negatively impact your ability to secure future mortgages. While some lenders may offer mortgage products with no redemption penalties, repeatedly utilizing this financing method could raise red flags for lenders, potentially making it difficult to obtain a mortgage in the future. Therefore, it's essential to carefully consider the costs and potential long-term consequences before relying on bridging finance for multiple property transactions. If you're unsure about your mortgage options or have specific questions, it's recommended to consult a mortgage broker for advice. The Property Hub community on propertyhub.net is also an excellent resource for seeking answers and helpful advice from knowledgeable brokers and other members.
