legally qualifying as a FTB re stamp duty

silvercar

Some ideas on qualifiying for that all important stamp duty break.

The detailed guidelines are here: http://www.hmrc.gov.uk/budget2010/sdlt-qa-tech-1545.pdf

1. If you can manage to secure the mortgage needed on just the salary of the partner who hasn't previously owned, you could then transfer to joint ownership later.

2. Put the property in the name of an (adult) child and transfer later.

Any other ideas?

Whether the revenue can trace back the timeshare in Tenerife in 1980 is debatable but you could be accused of fraud if the information did surface.

CloudCuckooLand

Does the adult child have an income...? Won't they want their own property - can they support both on 1 income...

What a ballsup. Every tom, !!!!!! and harriet trying to scheme their way to save £2k that they didn't mind spending until today.

Could have stuck £300 onto tax thresholds and given everyone a little boost...instead of £2k going just to FTBs buying a property.

silvercar

I'm assuming the adult child won't be in a position to buy until at least the end of this scheme, so using their name won't effect them now. Maybe a student currently.

CloudCuckooLand

So, how do they get a mortgage? Maybe ok for cash buying.

Have also replied to your other version of this in Debate.

hamblettamaud

CloudCuckooLand wrote: »

Does the adult child have an income...? Won't they want their own property - can they support both on 1 income...

What a ballsup. Every tom, !!!!!! and harriet trying to scheme their way to save £2k that they didn't mind spending until today.

Could have stuck £300 onto tax thresholds and given everyone a little boost...instead of £2k going just to FTBs buying a property.

Actually, I agree. And not just cos I'm not a first time buyer. If this scheme is expected to get the property market moving again then it's doomed to failure. There are many non-FTBs who are struggling too.

CloudCuckooLand

Interesting snippet on the news, EA in Dudley (iirc) saying FTBs only made up 1% of new applications during last year, that lending was the issue.

Helping 9 out of 10 of 1% isn't really going to do more than tread water until the election.

barrybarryr

Well I'm delighted. I exchanged yesterday and have overnight managed to save £1.4k.

It's amazing and means a lot to many first time buyers.

bigheadxx

It does put existing owners at a disadvantage if they were after the same property as a FTB. Propping up the housing market is a ridiculous policy, just storing up trouble for the future.

HUDDY

Do you think the Revenue will appoint a team to check into the life of every person who claims "first time buyer" exemption in case they owned a timeshare 15 years ago or got married and changed their name from when the Land Registry had previous details about them. As an Estate Agent I know how keen people were to claim their 4 bed house was a "3 bed with a study" to avoid a £400 Home Info Pack in 2007 so they'll certainly want to be creative to avoid a £2000 plus Stamp Duty charge. Ill conceived legislation yet again from the Government !!

PasturesNew

Change your name by deed poll... buy the house. Simples.

Bananabelly

Australia has the First Home Owners Grant, which is essentially the same thing. It has varied in the amount (it was increased as part of the stimulus package for the GFC) but whatever amount it is, it is usually fairly obvious that typical 'first home owner' type houses are inflated by that amount.

It is fairly easy to police it I think, but the record keeping might be different there. People have got it on million dollar houses, which probably involves parents etc and there is sometimes a concern about that. It props up the housing market though, you will probably soon find that the UK government can't take it away because then first home buyers won't be in the market at all...(some aussie FTB were using the grant as their entire deposit!)