Stamp Duty

donenvy

Bit confused about stamp duty.

Currently I live with my partner who owns a small flat and owned it before we met, being together for a few years now we're contemplating moving into a house and then getting married in the future.

Originally I was going to buy the house and he would keep his flat. But the problem is how house prices have increased my income alone is not enough.

Although he's happy to join me on getting the new mortgage, he's concerned because he already has a mortgage on his flat he's going to get slapped with a huge stamp duty.

I've read online it is allowable and some companies allow 2 people on the mortgage and 1 person on the title deeds.

But what we're not sure about given we're not married yet, I can't find what companies will allow 2 names on mortgages and 1 on title deeds and although we're not married will I still get hit with a huge stamp duty because he already has a flat.

Thanks

anselld

Why not just sell the flat?

buglawton

Now that Osborne's gone maybe the new stamp duty on 2nd ownership situations will be eased off.

kingstreet

As you note you need a lender willing to accept joint borrower/sole proprietor cases.

You should speak to a good independent broker about your options.

Your partner also has be to be willing to accept all the liability (mortgage) with none of the benefits of ownership (equity).

donenvy

We've been together for a few years, through our monthly budgeting I've partly been paying his mortgage for a few years anyway so he has no problem doing the same back in return.

I do think I need to speak to call somebody about this.

brit1234

buglawton wrote: »

Now that Osborne's gone maybe the new stamp duty on 2nd ownership situations will be eased off.

Hopefully not. The extra stamp duty for second homes is extremely popular with first time buyers and reduces property hoarding.

Sell the property and give someone else a chance of home owning. If not be prepared to pay an extra 3% stamp duty.

krishna18388

to my knowledge, only 2 lenders allow it. They are Barclays/Woolwich and Metro bank.


Be aware that you will need to get some additional documents in place which may incur additional cost. Like you partner would need to get "independent legal advice" as he will not have any financial interest in the property. It will take a little longer to do but is possible.


The important thing is to ensure the bank and the solicitors are both aware that this is how you want to purchase the property from day 1 so they can tell you what needs to be done early on.