No stamp duty for first time buyer question - where do I stand?

I used to own a house with my ex boyfriend. We split up and we sold the house. I am not currently on the property ladder, but I think am not classed as a first time buyer anymore.

My question is: I am now with someone new and he is a first time buyer and we want to get a joint mortgage together. Will he still benefit from the no stamp duty? But with me on the mortgage (not being a first time buyer, where would we stand?)

Comments

  • kingstreet
    kingstreet Posts: 38,691
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    You are not a FTB, so SDLT will be due if you buy a property alone or jointly with a FTB.

    You can take a joint mortgage, but have the FTB as sole owner and SDLT exemptions would apply.

    This is known as 'Joint Borrower, Sole Proprietor' and you should seek independent legal advice before taking this route as you would have 100% mortgage liability and 0% ownership.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,412
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    The HMRC Guidance notes say that to be a 'First Time Buyer'

    'a purchaser must not, either alone, or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world'
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Hi Kingstreet


    Am I correct in my understanding that this would only be an option for non married couples? As my wife and I are looking to buy a main residence (currently living with parents) I have an apartment purchased prior to marriage (currently rented out) but from what I understand 2nd property SDLT would apply as shes deemed to have an interest in the apartment? so we couldn't go down the sole owner joint borrower route?


    Regards
  • kingstreet
    kingstreet Posts: 38,691
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    Am I correct in my understanding that this would only be an option for non married couples?
    Yes.......
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • thank you Kingstreet
  • Hi, me and my wife are shared ownership leaseholders (we've staircased once from 50% to 80% ownership but were NOT legally required to pay stamp duty because the shares were under £125,000 and in shared ownership you are exempt until you own 80%). To staircase to 100% ownership we have to pay the full stamp duty on the flat, which could be about £10,000. But when we first bought our share we were first time buyers and as far as I understand we still are, yet I called HMRC to check if we are eligible for the new discount and they said definitely not. Sounds like utter BS to me. What was that stamp duty change for if not to help people like us? We had to opt for shared ownership because no bank would lend us the money for a full property purchase at the time.
  • davidmcn
    davidmcn Posts: 23,596
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    But when we first bought our share we were first time buyers and as far as I understand we still are, yet I called HMRC to check if we are eligible for the new discount and they said definitely not. Sounds like utter BS to me.
    Not BS in the slightest. You are already a property owner (assuming your current interest is worth more than £40k, which it must be if you're talking about £10k SDLT on the full price).
  • We aren't outright owners. We have a mortgage and we had to pay a premium on the price of the original share when we staircased because the value had gone up considerably in a short space of time. 400K is well below the average London house price anyway. And we can't sell our share of our flat on the open market. I just think the government should have found some way to include shared ownership schemes in the stamp duty exemption.
  • On the other hand, you benefited from the rise in value of the original share and gained equity when you would have been paying rent.

    I believe the government has done this because they don't want people to staircase out of Shared Ownership, but want people to stay part-renting and part-owning until they buy an open market house. I suspect they want to do that because they want to keep the management companies making money from the part-rent, but also that they want to get people out of S/O so they can get new people into it, treating it like a stepping stone to regular private ownership. But I'm totally speculating and have no insider knowledge.
    Mortgage started at £318,000 in June 2016. Original MF - 2041 :eek:
    2nd Property Mortgage at £275,000. Mortgage free: 2049 :eek:
    Total OPs: £29529
  • amnblog
    amnblog Posts: 12,412
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    We aren't outright owners. We have a mortgage and we had to pay a premium on the price of the original share when we staircased because the value had gone up considerably in a short space of time. 400K is well below the average London house price anyway. And we can't sell our share of our flat on the open market. I just think the government should have found some way to include shared ownership schemes in the stamp duty exemption.

    You don't have to be outright owners to not be First Time Buyers.

    SOS are included in the SDLT exemption which is for First Time Buyers.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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