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first time buyer help

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Azeem_2
Azeem_2 Posts: 10 Forumite
in House buying, renting & selling
Hi,

I am a first time buyer and hoping to take advantage of the stamp duty holiday for first time buyers. However, in able to obtain a decent mortgage I have added my brothers name to the mortgage and he is not a first time buyer. Therefore I believe that I am not eligible to receive this offer. Is there any way around this? legally of course.

Having added my brother to help me obtain a mortgage I would like to own the property in my own name in the future. Is it best to have a joint tenancy or tenancy in common and what charges am I likely to have to pay in the future?

Thanks for all the help
«1

Comments

  • david29dpo
    david29dpo Posts: 3,748 Forumite
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    Question 1, No. 2, Can you pay your brother back? Can you afford the loan on your own? Will your lender allow his name off the loan? Can you trust him in the future? I could go on and on.
  • Azeem_2
    Azeem_2 Posts: 10 Forumite
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    Yes I can pay him back and assuming the bank agrees to taking his name off what is the most cost affective way of achieving this?
  • david29dpo
    david29dpo Posts: 3,748 Forumite
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    It is a simply matter of getting the forms from the land registry and paying the fee depending on the house value. £75 up to £150000 i think. Go for joint tenants so if one of you drop dead, it automatically goes to the other.
  • poppysarah
    poppysarah Posts: 11,522 Forumite
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    Isn't that dishonest?

    And by taking part in a dishonest act aren't you ensuring house prices stay higher than they should be?
  • Azeem_2
    Azeem_2 Posts: 10 Forumite
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    poppysarah wrote: »
    Isn't that dishonest?

    And by taking part in a dishonest act aren't you ensuring house prices stay higher than they should be?

    Nope, it is not dishonest in the slightest. All parties are aware of the situation and have no problems. You could hardly blame me for the cost of housing these days you should probably look at the buy to let investors for that.

    I am looking for advice not for the morality police.
  • ModernSlave
    ModernSlave Posts: 221 Forumite
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    Azeem - A lot of people on these forums have a strong sense of right and wrong, black and white. Even if poppysarah's question was blunt I think it's a fair one to ask.
  • Estate_Agent
    Estate_Agent Posts: 80 Forumite
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    The easiest and legal way of doing this is by a transfer of equity which can be performed by a solicitor. The easiest time to do this - I believe - is when you eventually remortgage the property. As long as you can afford the new mortgage on your own - subject to the lender's own criteria, you can remove your brother from the deeds. My wife and I did this in reverse when we first remortgaged and I went onto the mortgage and deeds.
  • brit1234
    brit1234 Posts: 5,385 Forumite
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    No way round it you are eligble for stamp duty.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • poppy10_2
    poppy10_2 Posts: 6,575 Forumite
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    Estate_Agent wrote: »
    The easiest and legal way of doing this is by a transfer of equity which can be performed by a solicitor. The easiest time to do this - I believe - is when you eventually remortgage the property. As long as you can afford the new mortgage on your own - subject to the lender's own criteria, you can remove your brother from the deeds. My wife and I did this in reverse when we first remortgaged and I went onto the mortgage and deeds.
    For the stamp duty holiday this will not be accepted - the government has put in place measures so you cannot do this to avoid counting the brother as one of the purchasers, and therefore the whole transaction is subject to stamp duty.
    poppy10
  • superfran_uk
    superfran_uk Posts: 1,113 Forumite
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    Ow, burned - by doing this you've made yourself eligible to pay stamp duty.

    I guess honestly IS the best policy.
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