Joint mortgage/one name on deeds/second home stamp duty - HELP!!

JT1986

Hi,

I have a question regarding second home increased stamp duty and joint mortgages.

The scenario is as follows –

My partner and I aren’t married. My partner already owns a flat which we both currently live in. We want to buy a new place together but keep the old flat to rent out. Will we be stung with the increased stamp duty or not as we’re changing our main residence?
(Added background (in case it makes a difference to anything) is that I currently own a third share in a flat worth £80,000 but I believe that’s below the £40,00 threshold for second home stamp duty so isn’t relevant to anything here but please tell me if it does).

If the answer is no then great, no need to read on…

If the answer is yes, then our backup plan is to buy the second place and just put my name on the deeds but have both of us on the mortgage, does anyone have any advice in this area? Or a list of mortgage providers who are willing to do that? I’ve heard that Metro Bank do but are there anymore?

Any help that anyone can provide would be fantastic.

Thanks,

J

glentoran99

JT1986 wrote: »

Hi,

I have a question regarding second home increased stamp duty and joint mortgages.

The scenario is as follows –

My partner and I aren’t married. My partner already owns a flat which we both currently live in. We want to buy a new place together but keep the old flat to rent out. Will we be stung with the increased stamp duty or not as we’re changing our main residence?
(Added background (in case it makes a difference to anything) is that I currently own a third share in a flat worth £80,000 but I believe that’s below the £40,00 threshold for second home stamp duty so isn’t relevant to anything here but please tell me if it does).

If the answer is no then great, no need to read on…

If the answer is yes, then our backup plan is to buy the second place and just put my name on the deeds but have both of us on the mortgage, does anyone have any advice in this area? Or a list of mortgage providers who are willing to do that? I’ve heard that Metro Bank do but are there anymore?

Any help that anyone can provide would be fantastic.

Thanks,

J

glentoran99

as for one name on deeds and two on mortgage I really cant see any bank doing that, or a solicitor sanctioning basically fraud

amnblog

If you put the new property in your name you won't pay the extra 3% SDLT.

Yes, a few Lenders will do single owner/joint mortgage consult a good broker.

JT1986

glentoran99 wrote: »

as for one name on deeds and two on mortgage I really cant see any bank doing that, or a solicitor sanctioning basically fraud

Thanks for your reply but actually according to this Zoopla article HMRC have confirmed that it is entirely within the law - zoopla .co.uk/ discover/buying/q-a-new-3-stamp-duty-surcharges (sorry about the gaps but I'm not allowed to post links as I'm a new user)

We have no intention of committing fraud, this just appears to be one of the rare occasions where the government rewards people who aren't married rather than the usual tax breaks for people who are married...

JT1986

amnblog wrote: »

If you put the new property in your name you won't pay the extra 3% SDLT.

Yes, a few Lenders will do single owner/joint mortgage consult a good broker.

Thanks a lot, could you recommend any lenders? We will use a broker eventually but I'm just wanting to get an idea of where we stand at this point so that I can model out our options.

JT1986

glentoran99 wrote: »

[IMG]https:// assets.publishing.service. gov.uk/government/uploads/system/uploads/image_data/file/47781/SDLT-diagram.jpg[/IMG]

Thanks very much, that's a very useful chart

Pixie5740

JT1986 wrote: »

Thanks a lot, could you recommend any lenders? We will use a broker eventually but I'm just wanting to get an idea of where we stand at this point so that I can model out our options.

The brokers on this board aren't allowed to name lenders because it could constitute giving advice.

I read the link you provided which says, "However, so long as you are NOT married, it's possible to get around this by the person who does not already own a property, buying the new one in their sole name. We've had confirmation from HMRC that this will NOT be regarded as tax avoidance."

I'm not sure if having a mortgage in joint names with one legal owner will get round this as presumably you will be a beneficial owner if not a legal one. It's maybe something you should check out.

Stamp duty land tax: Higher rates for purchases of additional residential properties

kingstreet

'Joint borrower, sole proprietor' is the perfect solution to the SDLT surcharge.

It's going back to the old days of guarantor mortgages.

Pixie5740

kingstreet wrote: »

'Joint borrower, sole proprietor' is the perfect solution to the SDLT surcharge.

It's going back to the old days of guarantor mortgages.

Is a guarantor the same as someone who will, presumably, have entitlement to capital proceeds from the sale of the property, to income or to occupy the property?

glentoran99

JT1986 wrote: »

Thanks for your reply but actually according to this Zoopla article HMRC have confirmed that it is entirely within the law - zoopla .co.uk/ discover/buying/q-a-new-3-stamp-duty-surcharges (sorry about the gaps but I'm not allowed to post links as I'm a new user)

We have no intention of committing fraud, this just appears to be one of the rare occasions where the government rewards people who aren't married rather than the usual tax breaks for people who are married...

Apologies, I was mislead