I write regarding an SDLT problem following conflicting advice from the solicitor with a variation of £15000 in the amount payable.
A married couple John & Carol have lived in a rented house for over 5 years, they bought a buy to let 3 years ago.
Carol's Father Fred has lived in a bungalow owned 50% by himself and 50% by a trust set up when his wife died the trustees are Fred and Carol, Carol is the sole beneficiary.
John, Carol and Fred have now bought two adjoining semidetached properties.
John and Carol bought property 1 with a mortgage and a gift from Fred. John and Carol still own the buy to let.
Fred bought property 2 with the trust following the sale of his bungalow.
Each house will be the owners main residence respectively.
1. Does the buy to let mean John and Carol have to pay the 3% additional Property charge even though the buy to let mortgage does not allow them to live in it and it was purchased before the 2016 changes?
2 As Carol owns part of Property 1, and (as trustee and potentially as sole beneficiary) part of property 2 does this make them linked and attract a 3% additional Property charge there also?
3 Does the linking make it a multiple purchase attracting only 1% on the total price of 490k or does the buy to let that Carol is part owner of add a further 3% additional Property charge even though the buy to let mortgage does not allow them to live in it and it was purchased before the 2016 changes?