HELP!!! A complicated flat selling and house buying case

mifengmi

Hi experts, advise needed! My husband and I are living in a flat mortgaged in joint name, and we’d like to move to a house that close to our son’s school. However, it’s very difficult to sell our flat under current economy circumstance, and the chains were broken a couple of times in the past months. We then had a thought:
To use my husband’s name to buy the house with the current mortgage (it’s a very good deal, so we don’t want to loose it), at the same time I use only my own name to buy him out for the current flat with a new mortgage (a no fee life tracker). So my name on the flat, and his name on the house. We have checked with the banks that the mortgages won’t be a problem. The advantages are:
1, we don’t need to worry about any broken chains on the flat;
2, we can take it easy and do our DIYs as long as they take while we still stay in the flat;
3, and later on after we moved to the house, we can sell the flat any time when there is a right buyer.

But I’m just not sure if this is allowed (married couple with two solo named properties), or is there a better way to solve the problem?

Thank you very much in advance….

princeofpounds

It's allowed assuming mortgage co.s are happy.

mifengmi

Thank you, princeofpounds.

When we talked to the lenders, they didn't ask why we did it this way. They just assumed my husband and I were splitting up. - We didn't correct them either.

silvercar

Its fine if you answer all questions truthfully. You would both need incomes to justify the individual mortgages. Where are you going to live? If you are getting a residential mortgage you can't let the property. You would have to have it available for you to live in. For building insurance you would probably need to occupy it at least once every 30 days.

There could be tax implications on sale as a married couple can have only one principal residence between them. But from the situation you describe you would not have any tax to pay unless you owned both properties at the same time for longer than 3 years.

Once you do own two properties you should make a declaration to the revenue as to which one is to be your main home.

annberlin

silvercar wrote: »

Its fine if you answer all questions truthfully. You would both need incomes to justify the individual mortgages. Where are you going to live? If you are getting a residential mortgage you can't let the property. You would have to have it available for you to live in. For building insurance you would probably need to occupy it at least once every 30 days.

There could be tax implications on sale as a married couple can have only one principal residence between them. But from the situation you describe you would not have any tax to pay unless you owned both properties at the same time for longer than 3 years.

Once you do own two properties you should make a declaration to the revenue as to which one is to be your main home.

re
Silvercar is right in what she says.She is a wise owl, however, please be aware that should your relationship break down you have one property and he has the other and whilst there will be financial compensation on both parts sometimes it is too difficult to pursue.My previous husband and I did such a deal , he the main property and me a buy btl. He found a 30 something after 32 years of marriage,(not moaning glad to be rid) but to get out of all the pressure I agreed that we both had a property we could afford the upkeep .Just bear this in mind,do not want be a gloom merchant.Anyway I wish you luck in whatever you decide.:A