New Stamp Duty

Shanders72

My wife and I are buying a house. She owns our existing property in her name only. We plan to rent this out.
I was advised by my IFA that I buy the new home in my name only, as a first time buyer, and leave the rental property in my wives name, we would avoid the new stamp duty charges.
However, my solicitor reckons we'll have to stump up close to £7.5k on a £200k home.
Can anyone give me a steer?

Thanks

Derboy

My understanding is that if your wife isn't a party to the mortgage she may be viewed as a dependant, which depending on how happy the mortgage company is with your wife not being named on it and how her being a dependant would affect your affordability may mean that you'll have no choice but to put her on.

Shanders72

Thanks,
Mortgage appears to be going through okay in my name only.

DRFC1879

Some friends of ours were in a slightly similar situation although it wasn't a duty avoidance thing. They had a flat in the husband's name and moved to a larger house, again entirely in his name (Not sure why but that was up to them). The wife didn't have to be named on any of the paperwork although when her husband died suddenly last year it made the whole experience even more stressful.

lovinituk

From what I understand, your wife will still be treated as a beneficial owner in the new house for the purposes of the additional stamp duty, even if she is not actually party to the purchase or on the deeds.

See 3.44 here - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

3.44 Where an individual with a spouse or civil partner purchases an interest in a
dwelling and their spouse or civil partner is not a joint purchaser, the spouse or
civil partner will be treated as a joint purchaser in respect of the transaction38.

DTDfanBoy

Your solicitor knows what they are talking about, I'd be shopping for a new IFA if I were you

kingstreet

Yep. A married couple is treated as a unit, regardless of who actually owns what.

The unit is going from owning one property to two, so the surcharge applies.

AnotherJoe

Otherwise I suppose there's an obvious massive loophole here for couples to have one BTL.