joint savings and stamp duty

00ec25

mrdarcy86 wrote: »

@da_rule thanks for the clarification. I've read other threads indicating that lenders sometimes require the name of the person gifting the deposit to be on the mortgage if they will live in the property. And as a consequence, they would want the name to be on the deed as well.

there is, as you have identified, a remote risk that the lender will be concerned over the fact someone whose money is "invested" in the property will be living in it and therefore could oppose any repossession order if the lender needs to get one.

lenders normally deal with that by making the person sign a disclaimer acknowledging that the person has no rights over the property.

ask your mortgage broker to explain

Thrugelmir

YouFind4Us wrote: »

Basically, if the house is going to be in your sole name then nobody will ask where the cash has come from,

Why does being in a sole name make any difference?

Thrugelmir

00ec25 wrote: »

lenders normally deal with that by making the person sign a disclaimer acknowledging that the person has no rights over the property.

If the individual gifting the money lives in the property. Then this creates a financial interest in the property for said person. Which under certain circumstances poses the lender with major problems.

00ec25

Thrugelmir wrote: »

If the individual gifting the money lives in the property. Then this creates a financial interest in the property for said person. Which under certain circumstances poses the lender with major problems.

which is what i said in my post

YouFind4Us

@mrdarcy86 If you were given a money gift off anybody which you then used as a deposit, that's your business and your sole property. If your gf pays the funds into your bank then you don't even have to tell anyone about her. Anyone can live in the property with you after you've bought so only your name needs to be on the deeds.

00ec25

mrdarcy86 wrote: »

Thanks 00ec25. I spoke with the Solicitor. According to them, since my girlfriend owns a property already and she will be living with me in the property I am buying, then higher stamp duty is due.

I've explained that she's not my wife or civil partner, but they argued that we're in a relationship and in the eyes of HMRC would be could considered as one.

So it seems that the issue of lender requiring her name to be on mortgage/contract for contributing a gift is irrelevant.

Is this not accurate?

your solicitor is worryingly ignorant and so wrong you should make a formal complaint about them

https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

print out the guide, highlight the following sections and give it to them. Then invite the solicitor to apologise to you for their ignorance. Given how long higher rate has now been in place it is beyond remarkable that a solicitor is not able to quote this sort of stuff off the top of their head

3.37 "Where an individual is a legal and beneficial owner of an interest they will own that interest for the purposes of Condition C," The GF has neither a legal nor beneficial interest in the property... she is not a "purchaser" she is an occupant, and subject to the lenders requirements previously discussed, she will not appear on the deeds so is not a legal owner

3.42 Where a transaction is entered into by joint purchasers the higher rates will apply if the transaction would be a higher rates transaction for any of the purchasers considered individually. note the reference is to joint PURCHASER, not joint occupant

3.43 This rule applies whether an interest in a dwelling is purchased as joint tenants or tenants in common. the GF is not on the deeds, so is not a legal purchaser....