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  • FIRST POST
    • Yellie05
    • By Yellie05 18th Apr 17, 5:19 PM
    • 17Posts
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    Yellie05
    Help!!
    • #1
    • 18th Apr 17, 5:19 PM
    Help!! 18th Apr 17 at 5:19 PM
    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 (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
Page 1
    • ACG
    • By ACG 18th Apr 17, 5:39 PM
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    ACG
    • #2
    • 18th Apr 17, 5:39 PM
    • #2
    • 18th Apr 17, 5:39 PM
    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.
    I am a Mortgage Adviser
    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.
    • Yellie05
    • By Yellie05 18th Apr 17, 5:42 PM
    • 17 Posts
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    Yellie05
    • #3
    • 18th Apr 17, 5:42 PM
    • #3
    • 18th Apr 17, 5:42 PM
    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.
    Originally posted by ACG
    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
    • By ACG 18th Apr 17, 5:49 PM
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    ACG
    • #4
    • 18th Apr 17, 5:49 PM
    • #4
    • 18th Apr 17, 5:49 PM
    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.
    I am a Mortgage Adviser
    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.
    • Yellie05
    • By Yellie05 18th Apr 17, 5:58 PM
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    Yellie05
    • #5
    • 18th Apr 17, 5:58 PM
    • #5
    • 18th Apr 17, 5:58 PM
    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.
    Originally posted by ACG
    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
    • ACG
    • By ACG 18th Apr 17, 6:01 PM
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    ACG
    • #6
    • 18th Apr 17, 6:01 PM
    • #6
    • 18th Apr 17, 6:01 PM
    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.
    I am a Mortgage Adviser
    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.
    • TrickyDicky101
    • By TrickyDicky101 18th Apr 17, 6:12 PM
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    TrickyDicky101
    • #7
    • 18th Apr 17, 6:12 PM
    • #7
    • 18th Apr 17, 6:12 PM
    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
    • By Yellie05 18th Apr 17, 6:23 PM
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    Yellie05
    • #8
    • 18th Apr 17, 6:23 PM
    • #8
    • 18th Apr 17, 6:23 PM
    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
    • By Yellie05 18th Apr 17, 6:30 PM
    • 17 Posts
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    Yellie05
    • #9
    • 18th Apr 17, 6:30 PM
    • #9
    • 18th Apr 17, 6:30 PM
    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.
    Originally posted by ACG
    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
    • By ACG 18th Apr 17, 6:36 PM
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    ACG
    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.
    I am a Mortgage Adviser
    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.
    • Lilla D
    • By Lilla D 18th Apr 17, 10:54 PM
    • 137 Posts
    • 63 Thanks
    Lilla D
    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.
    I am a Mortgage Adviser
    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.
    • lovinituk
    • By lovinituk 18th Apr 17, 10:57 PM
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    lovinituk
    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.
    Originally posted by ACG
    That's not correct. You can only reclaim the additional stamp duty if you are replacing your main residence. This other property has clearly not been the OPs main residence.
    The following is my forum signature and not necessarily a response to your post:
    "To be truly successful you must live a few years of your life like others wonít so you may live the rest of your life like others canít"
    • lovinituk
    • By lovinituk 18th Apr 17, 11:03 PM
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    lovinituk
    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
    Originally posted by Yellie05
    No you wouldn't be entitled to anything.

    However why are you not reporting mortgage fraud? Your ex must have lied on the mortgage application if you say you know nothing about it. Report him to the police and the mortgage lender. It might be a quicker way to get you off the mortgage.

    Come to think of it - how did he even get you on the mortgage in the first place? Surely you would have needed to provide ID and sign papers at some point?
    The following is my forum signature and not necessarily a response to your post:
    "To be truly successful you must live a few years of your life like others wonít so you may live the rest of your life like others canít"
    • Yellie05
    • By Yellie05 19th Apr 17, 10:35 AM
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    Yellie05
    That's not correct. You can only reclaim the additional stamp duty if you are replacing your main residence. This other property has clearly not been the OPs main residence.
    Originally posted by lovinituk
    Exactly the other property hasn't been my main residence for many years, I have since lived in a couple of rented properties with my husband it is only now that we have got the deposit together to buy our own home - which is when it was brought to light that im still named on said other mortgage which i took out with my ex 10 years ago...

    This is the background story

    10 years ago I bought a house with my now ex boyfriend, we split up and a document was signed and returned to the mortgage company to remove my name, now as far as I can make out our mortgage was then sold to another company and my name remained unbeknown to myself at this point on the mortgage.

    Fast forward 10 years, when Myself and my Husband along with our bundle of joy are looking to buy our first house and I discover my name is still on the mortgage and land registry of the said property, Mortgage company are unable to just remove my name, tried to contact my ex and explain to him as id been advised by a solicitor for him to remortgage the house in his sole name or even remortgage the house in his and his wife's names (Yes my name is still on the mortgage and his wife is happily to live in the house he still legally owns with me?!!) (Nothing queerer than folk ay) but he isn't playing ball, and now to make things even more complicated he has now put the property up for sale.
    • Yellie05
    • By Yellie05 19th Apr 17, 10:41 AM
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    Yellie05
    No you wouldn't be entitled to anything.

    However why are you not reporting mortgage fraud? Your ex must have lied on the mortgage application if you say you know nothing about it. Report him to the police and the mortgage lender. It might be a quicker way to get you off the mortgage.

    Come to think of it - how did he even get you on the mortgage in the first place? Surely you would have needed to provide ID and sign papers at some point?
    Originally posted by lovinituk
    Im guessing you haven't read the history -

    10 years ago I bought a house with my now ex boyfriend, we split up and a document was signed and returned to the mortgage company to remove my name, now as far as I can make out our mortgage was then sold to another company and my name remained unbeknown to myself at this point on the mortgage.

    Fast forward 10 years, when Myself and my Husband along with our bundle of joy are looking to buy our first house and I discover my name is still on the mortgage and land registry of the said property, Mortgage company are unable to just remove my name, tried to contact my ex and explain to him as id been advised by a solicitor for him to remortgage the house in his sole name or even remortgage the house in his and his wife's names (Yes my name is still on the mortgage and his wife is happily to live in the house he still legally owns with me?!!) (Nothing queerer than folk ay) but he isn't playing ball, and now to make things even more complicated he has now put the property up for sale.
    • lovinituk
    • By lovinituk 19th Apr 17, 10:42 AM
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    lovinituk
    You can't generally just remove your name from a mortgage. The lender would want to know that a single party can afford the mortgage in their own right.

    If your ex is not being cooperative then you have little choice but to wait until the property is sold. Until it is you will have to pay the additional stamp duty on a new property you buy.

    Sounds like you will be better holding off on your purchase until the other property is sold.

    I believe even if a new property is purchased just in your husbands name, because you are married you are still seen as party to the new property for stamp duty purposes. Although do check the official guidelines to be sure.
    The following is my forum signature and not necessarily a response to your post:
    "To be truly successful you must live a few years of your life like others wonít so you may live the rest of your life like others canít"
    • ACG
    • By ACG 19th Apr 17, 10:43 AM
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    ACG
    Are you sure? Does it need to have been the last property you lived in?

    The reason I ask is according to the link below, it just says previously your main residence. Call it a technicality but it was previously our OPs main residence.

    It would be worth getting advice from the solicitor dealing with it.

    Use the online form to apply for a repayment of the higher rates of Stamp Duty Land Tax for additional properties if you sell what was previously your main home.
    https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties
    I am a Mortgage Adviser
    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.
    • Yellie05
    • By Yellie05 19th Apr 17, 10:45 AM
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    Yellie05
    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.
    Originally posted by ACG
    I have told my husband to mention it to the broker - however i would like to do my own research do i simply just google mortgage lenders whom would accept single person but wife with mortgage?? sorry im a total novice to all this and i really dont know who to turn to

    thanks
    • lovinituk
    • By lovinituk 19th Apr 17, 10:52 AM
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    lovinituk
    Are you sure? Does it need to have been the last property you lived in?

    The reason I ask is according to the link below, it just says previously your main residence. Call it a technicality but it was previously our OPs main residence.

    It would be worth getting advice from the solicitor dealing with it.


    https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties
    Originally posted by ACG
    My understanding is the word previously in that context means the one you have just sold/moved from.

    From here - https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

    If you’re replacing your main residence

    You won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

    If there’s a delay selling your main residence and it hasn’t been sold on the day you complete your new purchase:

    you’ll have to pay higher rates because you own 2 properties
    you may be able to get a refund if you sell your previous main home within 36 months
    I think you're on very thin ground if you are relying on 'previously' meaning any house in the past, rather than the last one.
    The following is my forum signature and not necessarily a response to your post:
    "To be truly successful you must live a few years of your life like others wonít so you may live the rest of your life like others canít"
    • pimento
    • By pimento 19th Apr 17, 10:53 AM
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    pimento
    Presumably if the property is half yours then you're entitled to half the profit when it sells.

    That would probably go some way to covering the cost of the stamp duty and when informed, might concentrate your ex's mind.
    "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." -- Red Adair
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