Stamp Duty - FTB

Steve_Andrea

Hi,

I'm hoping someone can help me.

I'm a 1st time buyer but my partner has owned a property in the past with a different partner.

Since separating with her ex her name's been taken off the mortgage.

Looking at the new Stamp Duty rules I can see we don't qualify.

I've seen a few posts on the forum relating to this issue and some have said the mortgage can be joint but the deeds in a single name? Is this true?

I cannot get a high enough mortgage on my own income so was hoping we could qualify for this.

Any ideas?

Richard_Webster

I've seen a few posts on the forum relating to this issue and some have said the mortgage can be joint but the deeds in a single name? Is this true?

No it isn't.

seabright

You could buy in your sole name with the property and mortgage in your sole name and with her as a guarantor on the mortgage. Maybe a mortgage company would lend you a higher amount on that basis, but I wouldn't count on it.

That would leave your girlfriend with a liability (being a guarantor on the mortgage) but no security (i.e. no share of the property) which she probably wouldn't like.

You could hold the property as the legal owner (i.e. with your name on the deeds) on trust for the beneficial owners (you and your girlfriend). You'd need to get a Declaration of Trust drawn up to reflect that agreement. It wouldn't be great from your girlfriend's point of view, but better than no security at all.

TBH I haven't looked into how the new SDLT rules deal with legal and beneficial owners and you'll need to get your solicitor to do so, if you consider going down this route. Be prepared to pay for his/her time researching the point for you.

I recommend Declarations of Trust for all unmarried buyers in any event; it's better to have thought about all the eventualities before going into a property purchase. A good Declaration of Trust should cover (amongst other things) who paid what and what shares each owns, whether the shares are fixed or floating, who pays for what expenses in the home, who pays for renovations/works and in what proportion, what happens if one party looses their job/income, what happens if one party becomes pregnant, what happens if one party dies.

Declarations of Trust (done properly) aren't simple or cheap. But they're a lot cheaper and less painful than suing one another if something goes wrong. Also, it makes both parties talk about serious issues.

Steve_Andrea

We have now found somewhere so was wondering if a solution has been found yet?