First time buy not a first time buy

ScorpiondeRooftrouser

What income? As far as I can tell he or she is paying the mortgage and the mother is living there without paying rent. I could be wrong.

G_M

I think the SDLT on a 2nd property is the least of the OP's prblems.

Since he owns a property but does not live in it, if/when he sells he will have to pay Capital Gains Tax..........

As others have said there are also issues aroun

* mortgage fraud if it's a residential mortgage - does the lender know he does not live there?
* insurance
* landlord's other many legal obligations

mistyarthur

Yes it is paid for by me so there is no income from it. I'm there almost every single day as she is unwell I go round with shopping and to make sure everything is ok. I technically don't live there but it isn't rented and you could argue I do with the amount of time I go there etc.

marliepanda

ScorpiondeRooftrouser wrote: »

What income? As far as I can tell he or she is paying the mortgage and the mother is living there without paying rent. I could be wrong.

Then I'm not sure why the complaints about that being taken into account with mortgage affordability...

Do you have a residential mortgage OP. You clearly don't live there, no matter how much time you spend there.

If you dont live there, having a residential mortgage is mortgage fraud.

ScorpiondeRooftrouser

I'd imagine trying to get another residential mortgage while this one is still in place would flag that up a bit.

mistyarthur

Several lenders allow you to have 2 properties without one being a buy to let. I'm not sure why everyone wants me to be guilty of some kind of fraud. I live locally I have had to stay at the house twice in the past fortnight I wouldn't class it as my home but what would be their definition, council tax registered, registered to vote? All at that property?

marliepanda

mistyarthur wrote: »

Several lenders allow you to have 2 properties without one being a buy to let. I'm not sure why everyone wants me to be guilty of some kind of fraud. I live locally I have had to stay at the house twice in the past fortnight I wouldn't class it as my home but what would be their definition, council tax registered, registered to vote? All at that property?

Living there.

The lenders that let people have two properties.... Oh, two properties. Two properties means you get the second property stamp duty hike.

You're happy to get around the fact you have a residential mortgage on a house you don't live in, but you're not happy that this is stopping you with your plans.

Cake and eating it comes to mind.

ognum

mistyarthur wrote: »

Several lenders allow you to have 2 properties without one being a buy to let. I'm not sure why everyone wants me to be guilty of some kind of fraud. I live locally I have had to stay at the house twice in the past fortnight I wouldn't class it as my home but what would be their definition, council tax registered, registered to vote? All at that property?

Op

The first thing I would like to say is well done for being caring and considerate to your mother,many children could/would have walked away saying they could do nothing and you have stood up to responsibilities at a young age and I commend you for that.

Secondly, I do not think the other posters are suggesting you have knowingly committed fraud, they have a lot of experience and knowledge and are simply trying to get you to understand the pitfalls that you may have unwittingly stepped into.

Sadly you are not a first time buyer, you own a home and while the final details of the legislation are not yet clear it seems you will have to pay the 3% extra stamp duty and get no help to buy, you cannot step back.

The other issues are important, despite your mother not paying rent you are her LL, you own the property, she lives there. You have LL responsibilities that you should legally fulfil. There is sticky at the top of the page that you can read.

Being a LL might actually help you financial position, you can currently offset some of your mortgage and repairs etc can be deducted from tax. Take some advice on this.

You will also be subject to Capital Gains Tax from the date you move out of the house. Only you can decide when that was but if you are on the electoral role elsewhere then you have moved out!

When you come to sell you will pay CGT on the difference in price from when you moved out to the sale date, you maybe entitled to some residency allowances though.

This situation is not as simple as you may have believed, though you were trying to do the right thing. Take advice!

G_M

mistyarthur wrote: »

......I'm there almost every single day as she is unwell I go round with shopping and to make sure everything is ok. I technically don't live there but it isn't rented and you could argue I do with the amount of time I go there etc.

Whether it is your primary residence is, in law, a matter of fact, not a matter of whether you, or I, could 'argue' it is.

Relevant factors that would be considered include:

* are you on the electoral register at the property?
* are the utility bills in your name?
* does your bank (building society etc) have the property address for your account(s)?
* what address does your employer, pension provider, Benefits Agency, HMRC have for you?
* if you drive, what address is on your driving licence? Where is your car isurance/ road tax based?
* what address is on your passport?
* where do you most often sleep at night?
* if you have kids, where do they sleep? Which property is close to their school?
etc

Factors that would not be considered are:

* how often do you visit?
* how much time do you spend there?
* do you have sick relatives living there?
* do you take shopping to that address?

mistyarthur

Thanks for the help.
Marliepanda despite what you may think I am not trying to 'have my cake and eat it' I will not benefit when the house is sold. The mortgage has been left as it is as it is such a small mortgage it is below 10% of the property value now, which in your wisdom you will be aware a lender will not go lower than. It is a case of when she is ready to move out the house will be sold, the reason for the purchase hasn't changed and I wouldn't want to force her to move if she wasn't ready.
I came looking for advice not a lecture on me trying to be 'selfish' in your eyes or to get anything extra. In many other situations I wouldn't have been needed to talk on the mortgage, my mum would have her own house and I would be eligible for all the schemes, I'm not as others have clarified but how does this mean I'm looking for more than others?
Thank you ognum I will look into it.