Stamp duty loophole??

Laura+Aaran

My partner and I are currently looking to buy our first house together but have been told that we have to pay extra stamp duty as he is already named on another property with his ex wife.
He does not pay anything towards the house and has not lived there in years but as she has been told she cannot "on paper" afford it by herself, they will not release him from that mortgage.
Does this mean we have to pay the higher rate of stamp duty on our property together or is there a way of avoiding it?

AndyBSG

Not really.

Your options are that he insists his ex wife sells the house and buys somewhere she can afford 'on paper'. If she refuses he will have to try and force a sale which will be very difficult if they have children and will also involve an expensive court battle.

The other option is that you buy the new house alone and he simply lives with you. Of course, if he's paying towards the new house and you split up he is then in the position of having to try and prove he is entitled to a share of the value of your new house.

It's a rubbish situation and one many people fall foul of but there really isn't any legislation or common sense ruling's in place to stop this sort of thing happening.

always_sunny

you could buy the property under your name only (you did not say you're married) assuming you do not own another property.

On paper he will have 2 properties, whether or not he has use of them it's unfortunately irrelevant.