UK First Time Buyer w/ additional property abroad

[Christo8824]

My wife and I are purchasing our first UK property so for all intent purposes are first time buyers. However, my wife recently had the home where her mother lives in South Africa transferred into her name. That property is mortgage free.

Would the additional 3% Stamp Duty charge apply to our UK property purchase?

Thanks.

Christo

[maths]

I assume your wife did not inherit the SA property?

Have you and your wife not owned a residence in which you both have lived that you then sold?

[Christo8824]

No she did not inherit it. Her mother currently still lives in the property in South Africa. The title deed was just transferred into my wifes name recently.

No we have not owned a residence together and then sold.

[Christo8824]

The property in South Africa is only worth about 30,000 pounds

[maths]

In view of the market value of the SA property of below £40,000 then the 3% charge will not apply.

[Christo8824]

Thank you for your response.

I just came across this which also confirmed it. Example 36 is exactly our situation

https://www.gov.uk/government/consultat ... properties

The treatment of properties under £40,000
Currently, all transactions under £40,000 do not require an SDLT return to be filed with HMRC where no tax is due. This provides simplicity and minimises taxpayer burden. This will remain the case for purchases of additional residential property.

Residential properties, including a tenancy or lease of a residential property, worth less than £40,000 will not be taken into account when determining if an additional residential property is being purchased.

Example 35:
B owns a residential property which he uses as a main residence. He then purchases a property for £25,000 which he will use as a second home. The purchase price is less than £40,000 and so the higher rates will not apply.

Example 36:
G currently owns a property worth less than £40,000 which he does not intend to sell. He decides to purchase another residential property. At the end of the day of transaction, he is deemed to own one residential property as his ownership of the property worth less than £40,000 is not taken into account. Therefore, the higher rates will not apply.

[WAYNEFLETE]

Hi there,

Currently interested he exact same situation. Girlfriend inherited a third share of a property from her grandma which was sold netting her about £5k. Did you come to any conclusion on whether or not this makes us ineligible for first time buyer status as otherwise neither of us has owned anything.