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

kingstreet

Pixie5740 wrote: »

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?

No.

Being a joint borrower confers no rights of ownership. It is liability for the mortgage alone.

Pixie5740

kingstreet wrote: »

No.

Being a joint borrower confers no rights of ownership. It is liability for the mortgage alone.

So in the OP's case in order to save some money in SDLT (s)he is effectively giving away the right to occupy the property as well as any claim to the capital.

Edit: Reading back I'm not sure I was making my point very well in my posts. What I was trying to get at is that if the OP wants to be a beneficial owner rather than a legal owner that won't solve the SDLT issue. The only way for the OP to avoid paying the SDLT surcharge is to have no interest, beneficial or otherwise, in the property.

davidmcn

Pixie5740 wrote: »

So in the OP's case in order to save some money in SDLT (s)he is effectively giving away the right to occupy the property as well as any claim to the capital.

And taking on joint and several liability for the mortgage! I hope they're getting independent advice...

kingstreet

Pixie5740 wrote: »

So in the OP's case in order to save some money in SDLT (s)he is effectively giving away the right to occupy the property as well as any claim to the capital.

Edit: Reading back I'm not sure I was making my point very well in my posts. What I was trying to get at is that if the OP wants to be a beneficial owner rather than a legal owner that won't solve the SDLT issue. The only way for the OP to avoid paying the SDLT surcharge is to have no interest, beneficial or otherwise, in the property.

We've done one of these and first question was "Do you realise your only interest will be in the debt and you'll have no interest in the property?"

The answer we had back indicated they understood the situation. The case completed and we heard no more.

We have a standard disclaimer in our suitability report about second properties, SDLT etc.

kingstreet

davidmcn wrote: »

And taking on joint and several liability for the mortgage! I hope they're getting independent advice...

We certainly recommended it.

TrickyDicky101

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

Pretty sure this means you will have to pay the additional 3% SDLT whether or not you put the mortgage in one name or two.

davidmcn

TrickyDicky101 wrote: »

Pretty sure this means you will have to pay the additional 3% SDLT whether or not you put the mortgage in one name or two.

No, interests worth less than £40k don't count.

TrickyDicky101

davidmcn wrote: »

No, interests worth less than £40k don't count.

I think you may misunderstand the SDLT rules - as I see them written it is the consideration on the next purchase that counts (whether that is below £40k) - not existing ones.

Pixie5740

TrickyDicky101 wrote: »

I think you may misunderstand the SDLT rules - as I see them written it is the consideration on the next purchase that counts (whether that is below £40k) - not existing ones.

Read Condition C in the guidance note I linked to in post 8.

The property the OP has a share in isn't the problem it's if the OP's OH keeps hold of the property they're currently living in. In that case the SDLT surcharge will be due unless the OP's OH agrees to be neither a legal or beneficial owner of the new property whilst having joint and several liability for the mortgage. I assume that a joint mortgage is required to meet affordability.

amnblog

Just for the avoidance of doubt. Kingstreet and I are correct here.

We do this every day.

That's it.