Buying into my partners home

TheWillsh

My girlfriend is currently purchasing a house for cash and I am looking to move in with her and her children as soon as possible as it is 100 miles away from where we live at present. I currently have a main residence that is on the market, but is unlikely to be sold before my girlfriend moves into her new home. Please can anyone advise of the implications in respect of the stamp duty that I will have to pay should I move in before my house is sold. In addition, once my house is sold, I propose to pay half of all costs for the new house and so we will be joint tenants. However, to secure the house (with the vendors wanting a quick sale) my girlfriend had to buy the house in her name only. Therefore, we would like to have the deeds amended to show that we are joint owners.

NB - there is no mortgage involved and I have every intention of selling my current main residence and making the new house my main residence as soon as possible.

Any words of advice and how we can save on potential stamp duty costs (as we do not want to have two residences) and legal fees for deed changes would be appreciated.

Many thanks Mike

AdrianC

TheWillsh wrote: »

My girlfriend is currently purchasing a house for cash and I am looking to move in with her and her children as soon as possible as it is 100 miles away from where we live at present. I currently have a main residence that is on the market, but is unlikely to be sold before my girlfriend moves into her new home. Please can anyone advise of the implications in respect of the stamp duty that I will have to pay should I move in before my house is sold.

You're not married?

If she's buying the house on her own, then the normal SDLT will apply, so long as she doesn't own any other property.

If you're going to be a part-owner, then the 3% SDLT hike will apply, but you will be able to reclaim it if your previous primary residence sells within 3yrs.

In addition, once my house is sold, I propose to pay half of all costs for the new house and so we will be joint tenants. However, to secure the house (with the vendors wanting a quick sale) my girlfriend had to buy the house in her name only. Therefore, we would like to have the deeds amended to show that we are joint owners.

Ask the solicitor what it will cost, but there will be legal costs involved. It may be cheaper and simpler to go for the joint-tenancy straight off, and have the SDLT paid then reclaimed.

gingercordial

TheWillsh wrote: »

My girlfriend is currently purchasing a house for cash and I am looking to move in with her and her children as soon as possible as it is 100 miles away from where we live at present. I currently have a main residence that is on the market, but is unlikely to be sold before my girlfriend moves into her new home. Please can anyone advise of the implications in respect of the stamp duty that I will have to pay should I move in before my house is sold. In addition, once my house is sold, I propose to pay half of all costs for the new house and so we will be joint tenants. However, to secure the house (with the vendors wanting a quick sale) my girlfriend had to buy the house in her name only. Therefore, we would like to have the deeds amended to show that we are joint owners.

NB - there is no mortgage involved and I have every intention of selling my current main residence and making the new house my main residence as soon as possible.

Any words of advice and how we can save on potential stamp duty costs (as we do not want to have two residences) and legal fees for deed changes would be appreciated.

Many thanks Mike

I think what you are proposing will cost you more SDLT.

Your girlfriend will buy the house (transaction 1) and will pay SDLT on the whole purchase price.

You then intend to give her half the purchase price and get yourself added on to the deeds (transaction 2). Legally she will be selling you half of the house. You will need to pay SDLT on this purchase too, on the amount you give her, ie on half of the house price.

That means between you you'll pay SDLT on "your" half of the house twice, once when your girlfriend buys it and again when she sells it to you. I do not believe (though could be wrong) that there is any mechanism for you to avoid the SDLT on transaction 2 nor for her to reclaim anything from transaction 1.

This means effectively a 50% surcharge with no hope of a rebate!

Instead just buy the house together at the start, pay the 3% surcharge, then reclaim it when you sell your house - assuming you can do this within three years.

steampowered

If your girlfriend is comfortable making you a joint owner without receiving cash, she could put your name on the house as a joint owner from day 1.

You could sign a legally binding agreement with your girlfriend agreeing to pay your girlfriend a particular sum of money when your house is sold, which a solicitor would be able to draw-up for you.

teddysmum

gingercordial wrote: »

I think what you are proposing will cost you more SDLT.

Your girlfriend will buy the house (transaction 1) and will pay SDLT on the whole purchase price.

You then intend to give her half the purchase price and get yourself added on to the deeds (transaction 2). Legally she will be selling you half of the house. You will need to pay SDLT on this purchase too, on the amount you give her, ie on half of the house price.

That means between you you'll pay SDLT on "your" half of the house twice, once when your girlfriend buys it and again when she sells it to you. I do not believe (though could be wrong) that there is any mechanism for you to avoid the SDLT on transaction 2 nor for her to reclaim anything from transaction 1.

This means effectively a 50% surcharge with no hope of a rebate!

Instead just buy the house together at the start, pay the 3% surcharge, then reclaim it when you sell your house - assuming you can do this within three years.

The regular duty will only apply if the property value is in the stamp duty price range.