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    • torosanana
    • By torosanana 11th Jul 17, 5:30 PM
    • 2Posts
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    torosanana
    Advice needed on Joint Mortgages, Stamp Duty and CGT
    • #1
    • 11th Jul 17, 5:30 PM
    Advice needed on Joint Mortgages, Stamp Duty and CGT 11th Jul 17 at 5:30 PM
    Hi,

    First post but looking for some advice, and would really appreciate any help!

    I bought my first property, a nice little flat, in October 2012, which I sold this yeah in March 2017 and am currently renting a property with the hopes of upsizing to a house. However I am struggling to get together the amount of money needed for what I want. I don't have any problems in terms of affordability of repayments, and taking a large loan, it's all been factored and considered, but I just need a way of boosting my income to be eligible for a bigger loan.

    I am considering asking my sister to take a joint mortgage out with me in order to boost my eligible income. My sister is currently in the process of purchasing her own property. Am I right in thinking that, if we got a joint mortgage, with both names on the deed, then it would be considered a second property for my sister, and even though both will be residential, the sale will be eligible for the higher stamp duty rate, and as my sister's second property, if I was to sell it, she would have to pay Capital Gain's Tax?

    Furthermore - am I right in thinking that if we were to take a joint mortgage but my name would be the only name on the deed, as it will be my only residential property, then it would not qualify for the higher stamp duty, and there is no CTG payments? I appreciate that in this scenario my sister will be taking a liability for the loan, and no property, and she gets not a lot out of this!

    Thanks everyone!
Page 1
    • kingstreet
    • By kingstreet 12th Jul 17, 8:55 AM
    • 31,929 Posts
    • 17,060 Thanks
    kingstreet
    • #2
    • 12th Jul 17, 8:55 AM
    • #2
    • 12th Jul 17, 8:55 AM
    Am I right in thinking that, if we got a joint mortgage, with both names on the deed, then it would be considered a second property for my sister, and even though both will be residential, the sale will be eligible for the higher stamp duty rate, and as my sister's second property, if I was to sell it, she would have to pay Capital Gain's Tax?
    Originally posted by torosanana
    Yes and yes.

    am I right in thinking that if we were to take a joint mortgage but my name would be the only name on the deed, as it will be my only residential property, then it would not qualify for the higher stamp duty, and there is no CTG payments?
    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.
    • torosanana
    • By torosanana 12th Jul 17, 9:05 AM
    • 2 Posts
    • 0 Thanks
    torosanana
    • #3
    • 12th Jul 17, 9:05 AM
    • #3
    • 12th Jul 17, 9:05 AM
    Thank you so much for confirming
    • kingstreet
    • By kingstreet 12th Jul 17, 9:28 AM
    • 31,929 Posts
    • 17,060 Thanks
    kingstreet
    • #4
    • 12th Jul 17, 9:28 AM
    • #4
    • 12th Jul 17, 9:28 AM
    There are very limited 'joint borrower, sole proprietor' options which the second part of your post refers to.

    You may find life easier by appointing an independent broker to establish and illustrate these for you.
    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.
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