stamo duty homes in different names

redhead123

How does the stamo duty on second homes come into effect if the main residence is one mortgagee and the other is under my partner? Ie I sell my house buy another he moves in but keeps his but changes it to buy to let but in effect is only named as mortgagee on the btl property.

redhead123

We are not married...so not sure if that makes a difference
If we then put both houses in both names i guess that would

G_M

You own one property.

He owns one property.

What's the question?

Does he know what's involved?

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redhead123

I guess the question is whether we can keep his house without laying the extra SD. Scenario 1) if we sell mine and I buy he lives in the new one with me he keeps his and we use the rental income to pay part of new mortgage do we still have to pay stamp duty? 2) as above but add names a good while after the sale has gone through maybe a year or so to give us time to save the extra SD 2) we sell mine keep his put both our names on I guess we do need to pay stamp duty up front ? 3) sell both houses

Azure11

redhead123 wrote: »

I guess the question is whether we can keep his house without laying the extra SD. Scenario 1) if we sell mine and I buy he lives in the new one with me he keeps his and we use the rental income to pay part of new mortgage do we still have to pay stamp duty? 2) as above but add names a good while after the sale has gone through maybe a year or so to give us time to save the extra SD 2) we sell mine keep his put both our names on I guess we do need to pay stamp duty up front ? 3) sell both houses

I think you have answered your own question.

If either one of you owns another home when you buy the second one (and put both names on it) then the extra 3% will apply as I understand it.

booksurr

redhead123 wrote: »

How does the stamo duty on second homes come into effect if the main residence is one mortgagee and the other is under my partner? Ie I sell my house buy another he moves in but keeps his but changes it to buy to let but in effect is only named as mortgagee on the btl property.

you own a property (A) and are going to sell it and become the owner of the new property (B), The one being sold (A) is currently your main residence and the new one (B) will be its replacement

he owns a separate property (C). He will NOT be an owner of B and is not on its mortgage. He intends to convert C into a BTL

SDLT on purchase of B by you
you are replacing your existing main residence in a single transaction with no gap between sale and purchase. As a result the higher rate SDLT will not apply to you
He is not an owner and crucially you are not married therefore he is not a party to the transaction as your are both separate individuals and he has no legal interest in property B

putting him on the mortgage at a later date
if you do so (whether married or not by that time) he will be liable to the higher rate since he already owns a property and is not replacing his main residence, he is simply acquiring another property, even though it will become his main residence. Therefore, if at the point he is added to the mortgage the amount outstanding on it is more than £40k he is above the threshold at which the higher rate will apply

read the guide, it's readily available on line...
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf