Confused about what were doing

Danandsarah

Hi, im confused and could realy do with some help and advice.

I am currently purchasing a new build property with my fiancee and we have advised our builders, mortgage advisors & solicitor that we are first time buyers. However..........
About 6 years ago my finacee and I brought a property with my partents as an investment and this property was put in my name and only my name but my parents took a mortgage out on there own house to buy the investment property out right so there is no mortgage currently on our investment property and we have a long term sitting tennant in there. Which in my opion would mean that i have never had a mortgage in my name and i have never brought a "property" personally but have one in my name. Am i a first time buyer anymore? Will the Halifax accept my mortgage application? will i need to pay stamp duty (house price is bang on 250k).
I have advised the builders, mortgage advisor and solicitor of the above concerne and none of them seem to be 100% confident on where i stand.
This is really hard too explain and im prob missing the obviouse but advice , guidence would be very much appriciated.
Cheers.

sonastin

As I understand it, anyone who has ever owned property anywhere in the world will not qualify for the FTB stamp duty exemption, and as the investment property is in your name, you will have to pay stamp duty. I don't know how the mortgage companies that offer FTB deals judge who is a FTB but I would guess it would be the same. However there is no reason why you couldn't get a mortgage on a deal that isn't restricted to First Time Buyers (unless there is something you haven't told us, like bad credit no deposit, etc!!)

DVardysShadow

There are many definitions of FTB. The one used for Stamp Duty exemption was created for thta purpose. Apart from the Stamp Duty exemption, whatever you can get as FTB is almost certainly available to you

Danandsarah

Hi Guys, thanks for quick responses. in terms of deposits etc we have a 25k deposit and a good credit rating as far as im aware.
We are buying a home through the builders Crest and have agreed to purchase a property from them on an easy share scheme which means the below.

Agreed purchase price @ 250,000

Our deposit of £25,000 (10% of property value)

Crest give us an interest free loan of £37,500 for 5 years (15% of property value, this loan must be paid back within 5 years in a lump sum and will be whatever 15% of the property value is when we pay them back)

Mortgage required @ £175,500 which we have an AIP for with the Halifax and have been to the advisors today to submit the official application and provide proof of income ect.

At what point do you need to pay stamp duty? Lets say i go through the entire purchase proceedure as a first time buyer when is it likly to be noticed that im not a FTB (when it comes to stamp duty) if indeed im not.

With regards to the mortgage concernes i have i am worride that the official application will get refused because im pretty confident the mortgage i have applied for is for FTB (its with Halifax and its fixed at 4.89% for 2 years) however the main reason we have gone for this mortgage is because the advisor advised us that this was one of the only mortgages that would give us a mortgage considering the easy share scheme we are entering into with Crest?????????

DVardysShadow

You don't qualify as FTB for Stamp Duty. Don't waste time and effort on this.

As far as the mortgage is concerned, does the advisor know that you previously owned a property? Do you have it in writing? This si waht you need to be sure of before you commit money.

Richard_Webster

You don't qualify as FTB for Stamp Duty. Don't waste time and effort on this.

Just to emphasise the point.

Whether you qualify as an FTB for the mortgage deal is an entirely different matter.

benood

Could your financee be a FTB? If she is then she could buy the property and you would avoid stamp duty that way - especially if you got married and she transferred 50% back to you as an inter spouse transaction which would be tax free. If she doesn't have enough earning capacity to fund the mortgage outright you might have to rely on the flexibility of your mortgage lender and solicitor to come up with a solution - perhaps a trip to the registry office would be opportune!

mylovebridal

Richard_Webster wrote: »

Just to emphasise the point.

Whether you qualify as an FTB for the mortgage deal is an entirely different matter.

yeah,i think so