Stamp Duty

Lola1966

I'm looking to buy a house. I'm currently living with my partner but not on his deeds and don't own any part of his home. I'm a cash purchaser wanting to buy at £225,000. I understand I would pay £2,000. Stamp duty if I'm buying on my own but my partner wants to live with me and rent his own home out. What happens to the stamp duty? Is it classed as a 2nd home even though it's my first. We would be paying a 60/40 split in my favour.
Advice greatly appreciated.

Pixie5740

Assuming you are not married and buy the property on your own you will not have to pay the addition 3% SDLT.

If you are purchasing the property by yourself I'm not sure where the 60/40 split is coming into it.

G_M

Please explain

Lola1966 wrote: »

I'm looking to buy a house. I'm currently living with my partner but not on his deeds and don't own any part of his home.

...my partner wants to live with me and rent his own home out. What happens to the stamp duty? Is it classed as a 2nd home even though it's my first. We would be paying a 60/40 split in my favour.
Advice greatly appreciated.

"I'm buying" suggests you will be the owner of this new property.

"We would be paying a 60/40 split" suggests you will be jointly buying.

which is it?

If you are buying and will be the sole owner, then there's no addional SDLT.

If you jointly buy, you will hav to pay the additional SDLT as one of the joint owners already owns a property.

debred86

I have just been stung with this!

Me and my partner are buying a house together, i had my own house which i now rent out.

Originally i was going to sell my house so the first quote from the solicitors was £1500 stamp duty. Today i received a letter from the solicitors saying that because i am now renting it out i will have to pay extra stamp duty(£6000 extra :mad:)

You may get away with not paying the extra if your partners name isnt on the deeds but i presume as you say it is 60/40 i imagine it will be.

elverson

What's wrong with that?

Lola1966

Thank you debred86. This is exactly the situation I'll be in. It's a massive increase. I think I'll just have to pay it. 😕

Lola1966

G_M
I was initially thinking of buying outright myself. My partner would live with me and rent his out. However, he is now thinking of helping fund the purchase. I'm the first time buyer so am I allowed part 'stamp duty free' rather than him being '2nd property' owner?

G_M

Lola1966 wrote: »

G_M
I was initially thinking of buying outright myself. My partner would live with me and rent his out.
then as explained, you would own only 1 property so noadditional SDLT

However, he is now thinking of helping fund the purchase. I'm the first time buyer so am I allowed part 'stamp duty free' rather than him being '2nd property' owner?

What does "helping fund the purchase." mean?

a) He will lend or give you some money. You buy the property. The property is registered in your sole name? See answer in red above.

Note - he will have no rights over the property (unless it's a loan and he places a Charge on it, similar to a mortgage loan)

b) He contributes directly to the purchase price (ie not lending/giving you the money). He becomes a joint owner, with the property registered in your joint names. See reply in post 2 above!