Help!!

Yellie05 · 18 April 2017 at 5:19PM

Some of you may remember my first post re my name being on a mortgage with my ex - unbeknown to myself for the past 10 years anyway long story cut short I have still had no joy getting in touch with my ex re taking my name off the mortgage and he has put the property up for sale :mad: (Please see first post for full details)

Anyway in the meantime me and my husband are looking to buy our first home and we have been told that we will have to pay stamp duty as it is classed as a second home, my question is
1) Is there a way around this I have no financial connection to this property and haven't until recently when I found out my name was still on the mortgage haven't spoken to my ex in 10 years
2) Could my husband apply for the new mortgage in just his name - would we still have to pay stamp duty?

Thank you

ACG · 18 April 2017 at 5:39PM

If you go down option one, you can reclaim the stamp duty once the property sells - assuming it is sold within 3 years of the new purchase completing.

He potentially could, but your options will be very limited.

Yellie05 · 18 April 2017 at 5:42PM

ACG wrote: »

If you go down option one, you can reclaim the stamp duty once the property sells - assuming it is sold within 3 years of the new purchase completing.

He potentially could, but your options will be very limited.

Thanks for your reply,

Our broker has told us that the second option isn't possible because we are married is that not the case then ACG? Thanks

ACG · 18 April 2017 at 5:49PM

There is only one high street lender I know of that will do it, so options are slim.

I have 2 going through with them at the minute for the same reason as you (ie avoiding stamp duty). The other potential issue you may come across is solicitors. Some solicitors will not be happy to do it as they see it as tax evasion (which is illegal) rather than tax avoidance (which is legal). I only say that as one of the 2 I have goig through we have had to change solicitors due to that reason.

Yellie05 · 18 April 2017 at 5:58PM

ACG wrote: »

There is only one high street lender I know of that will do it, so options are slim.

I have 2 going through with them at the minute for the same reason as you (ie avoiding stamp duty). The other potential issue you may come across is solicitors. Some solicitors will not be happy to do it as they see it as tax evasion (which is illegal) rather than tax avoidance (which is legal). I only say that as one of the 2 I have goig through we have had to change solicitors due to that reason.

ACG, Are you able to advise me of said high street lender?
I dont know if you have read my first ever post on here "Need Help" but the whole situation is seriously sending me under and the fact my ex is completely uncooperative and is living in said property with his now wife is well absolutely ridiculous :mad:

ACG · 18 April 2017 at 6:01PM

One thing the brokers can not do on here is to name names. I only have limited information and so if I turn rounf and say lender x will do it, but they then declined you because of something else, I am opening myself up to a complaint.

That is the ridiculousness of the industry we work in, it is so heavily regulated.

TrickyDicky101 · 18 April 2017 at 6:12PM

Since you are married your husband would still need to pay the additional rate of SDLT on the purchase even should you not be registered on the title as you are on the title of the property with your ex, as far as I am aware.

Yellie05 · 18 April 2017 at 6:23PM

Does this not contradict what my broker is saying though??

(Taken from Zoopler website)

Q. What if the home I am buying will be my main residence?

'Main residence' refers to the home you live in, not just a property you own. And which home is your main residence will be judged as a matter of 'fact' (for example, where you spend most nights, where the rest of your family lives, where you are registered to vote and where you are signed up to local doctors and dentists). You won't be able to 'elect' a main residence as you can for the purposes of Capital Gains Tax.

If the home you are buying replaces your main residence, you will not be liable for the 3% surcharge, even if you own an additional property/properties (such as a second home, or let flat) at the same time. This example is straight from the Government's consultation document:

"A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply."

Yellie05 · 18 April 2017 at 6:30PM

ACG wrote: »

One thing the brokers can not do on here is to name names. I only have limited information and so if I turn rounf and say lender x will do it, but they then declined you because of something else, I am opening myself up to a complaint.

That is the ridiculousness of the industry we work in, it is so heavily regulated.

Thanks ACG,
Ahhh I see - so its just a case of me hopefully stumbling across said lender?

This is turning into a really bad joke.. Are you able to advise me if im still entitled to half of the proceeding of the sale of the property even if I haven't paid into said property for nearly 10 years? Thank you

ACG · 18 April 2017 at 6:36PM

Either you stumble across it/do your own research. You tell your broker it can be done and see if they find the lender(s) or you find a new broker.

I do not think you are liable for the stamp duty, but that is for the solicitor to help you decide.

As for the entitlement, I have no idea. You need to get legal advice, this is a different issue and not something I would want to comment on.

Lilla_D · 18 April 2017 at 10:54PM

Hi Yellie05, I have done applications with various lenders who can accept only one party of a married couple on the mortgage, so the situation is not that bad. Admittedly that are not many, but there is more than one lender option. If your broker can't help, then indeed either you'll have to ask around or speak to a different advisor.

Help!!

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