Mortgage on property already owned?

DreamweaverB

Ex-girlfriend had an AIP which expired a few months ago but has just found a flat she likes. She applied for AIP again (with 25% deposit) and was inexplicably declined; checking Experian shows some oddities with the addresses listed (they have previous and current address wrong way round) and a previously unknown £22 outstanding amount to O2 for 4 months. Everything else on the credit report is flawless.

It should be possible to get the report fixed but it won't happen overnight and so she'll probably miss out on this flat.

The FTB mortgage she needed was £100k on £125k flat, I can afford to either lend her this or buy the flat in my name and then sell it to her once her credit report is fixed. (Ignore the risk to me as I don't mind whether it takes 3 months, 3 years or longer for her to be able to get a mortgage.)

If I buy it in my name then downside is I'll have to pay Stamp Duty as well as normal legal fees etc. If I lend her money then presume she'll get FTB first time around but will she have to pay SD when she gets a mortgage 3 months on? How does it work with getting a mortgage on a property she already owns so that she can pay me back? To complicate matters she'd be putting £25k towards it whether bought in my name or hers.

Anyone got any thoughts on the best way to move forward with this?

Thrugelmir

If you purchase the property in any form. Then you will leave yourself open to a CGT liability at the point of disposal.

You could always lend her a sum of money to assist with the purchase. Your G/f applying for a much smaller LTV mortgage.

Your solicitor would then arrange for a charge to be placed on the property to secure the debt. So should anything happen to your relationship your debt is secure. The property could not be sold without repayment of your debt.

No reason why your G/f could not make monthly repayments to you to discharge the debt over a period of time.

DreamweaverB

Thanks, yes good idea, I think I'll just lend her the money and she can pay me back monthly whatever she would have paid the bank until she gets the mortgage sorted out to settle in full.

Thinking about it further presumably her getting a mortgage on a property she'll already own is no different to getting a secured loan so there'll be no further legal fees or Stamp Duty to pay.