Name on mortgage but not on deed

MetManMark

Dear all,

My wife and I are planning to buy a family home and let out our current property which I bought before meeting her.
The idea was for my wife to be the only name owner of our family home (i.e. be sole name on the deed and the mortgage). However, as my wife is pregnant, the bank is saying they won't authorise a mortgage under her name only, as she won't have enough disposable income to pay for the running of the household when she goes back to work. They suggest we should make a joint application but say we still be able to have the deeds under her name only (they called it "an indirect charge").

Our main concern is that we wanted to keep the two properties separate, as if we decide to sell my property I would not be liable for capital gain tax.
Will this still be the case if I am not named on the deed but am named on the mortgage?

Any suggestion would be appreciated.

altec_09

Do you get the first time buyer stamp duty benefits doing it this way? I will hopefully be in a similar situation in a few years and am keen to know the answer to your question also.

MetManMark

I have not thought about the stamp duty thing.
Originally yes, but if we both name on the mortgage I am not sure.
Anybody??

Meeper

Meep!

This is solely for the benefit of the bank to have someone else to come after in the event of default.

Why would you want all of the downside of property ownership (the mortgage liability) but none of the upside (actual ownership of the property)??

MetManMark

My wife is actually a first time buyer, so we would hope to save on stamp duty plus in the event of us needing to sell my property I would not have to pay to capital gain tax.

System

MetManMark wrote: »

Our main concern is that we wanted to keep the two properties separate, as if we decide to sell my property I would not be liable for capital gain tax.

This fails at the first hurdle

A married couple can have only one main residence exemption between them, so long as they are living together.

http://www.fool.co.uk/Your-Money/guides/Capital-Gains-Tax-Residential-Property.aspx

MetManMark

Thanks !!!!!! for your reply. That's great.

Do you know what the situation is regarding stamp duty?

altec_09

!!!!!! wrote: »

This fails at the first hurdle


http://www.fool.co.uk/Your-Money/guides/Capital-Gains-Tax-Residential-Property.aspx

So it's fine if your not married?

Could the fact that one of us is in the military still save you from CGT (we would never be classed as living together even if married when we both own seperate properties)?

Sorry to hijack your thread but it's very similar! I'm also very interested about the stamp duty question!

TrickyDicky

MetManMark wrote: »

Thanks !!!!!! for your reply. That's great.

Do you know what the situation is regarding stamp duty?

If you are named at all then you are not classed as first time buyers.

CLAPTON

in general, cgt is payable on a property that is not your personal private residence
it doesn't matter if it is your only property, you still have to pay cgt if you don't actually live there
so there is no benefit in the new property being solely in your wife's name; you might just as well have it in joint names

in practice and without knowing the full details it's unlikely that you will pay much cgt on your current property as you will benefit from it PPR relief, letting relief and of course your annul cgt allowance

System

altec_09 wrote: »

So it's fine if your not married?

Could the fact that one of us is in the military still save you from CGT (we would never be classed as living together even if married when we both own seperate properties)?

Sorry to hijack your thread but it's very similar! I'm also very interested about the stamp duty question!

If you are married or in a civil partnership then only one residence can be classed as the main residence.
Being in the military is no different to somebody owning a house close to where they work and the spouse being in a similar position.