I bought a leasehold flat in 2008 for 75k. Since the I have struggled to sell as;
It is a studio - lenders are reluctant and freeholder will not do repairs so has run the property down. The flat has been valued at less than than what I owed on mortgage.
So I kept hold of it - just to pay off enough of mortgage in order to sell I now owe 51k. I don't live in flat and it's currently empty - so I'm paying rent in other accommodation ( thus paying someones else's mortgage) as it's located 200 miles from where I work. I have been told by agents that although the value may be above 40k that it's unlikely that I can sell it. The flat has not been my main residence in more than 3 years -
So me and my partner have been working hard ( me loads of overtime- no holidays) and have started again whilst chipping off at the mortgage on flat. We have managed to save enough deposit to buy a house and get a mortgage (my flat does not count as it's in negative equity - thus no equity to release) I'm 35..
However if we buy when I still own a flat ( which I am unable to sell and has 0 equity) we will have to pay extra 3% stamp duty- which is money we don't have.
I understand the rules for people who have equity and are making money out of property - Aldo trying to make more accommodation available for people rather than it all being bought as buy to let's -
But for me I have a flat I want to sell - no one will buy it - it's barely worth over 40k ( I only kept it to be in a position that I could sell and not owe on mortgage- bought at 74 I owe 51 now - ) and because of this I'm going to get taxed and extra 8k on new house? When I have lost out so much and am stuck with this weight around my next which has cost and cost for 10 years - mortgage interest , fees maintenance + factor in depreciation - now an additional tax cause I can't sell- I found out about the 3% surcharge on Sunday and honestly I wanted to jump off a bridge!
If it's valued at < 40k (for the flat I own) do we still pay 3% surcharge on second property? Also are there any exceptions around rules? If it's valued at 41k?!?!
If I didn't owe 51k on the mortgage I would give it away!
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