FTB who should we put on the house deed?

PokerPlayer111

Me and the long time GF cash buying house, both 1st time buyers. We both are contributing funds to the buy. Can 1 of us put 1 name on the house deed? to keep the other 1 as a first time buyer when we buy a 2nd property?

If we do have 1 person on the deed but both have contributed funds to buying the house what does that mean legally? does 1 person own the house? has the other person basically given the deed holder anything ?

If then long term GF and i split up after house buy and 1 person is on deed but both actually moved funds to pay for property what does that mean? does the person not on deed have any claim on the house?

Pixie5740

Do you require a mortgage? If so good luck getting a lender to agree to part of the deposit coming from someone living in the property but not named on the mortgage.

If no mortgage is required is one person willing to give away half the value of the property and have no beneficial interest in the property to save a few thousand in SDLT? Why as a couple would you want to own two properties between you if you will only be living in one?

G_M

As there is no mortgage, it is up to you to decide who will own the property.

Yes, of course whoever is on the deeds owns the property! That means the other person has no rights, can be kicked out, and if the property is sold by the owner would have a difficult fight getting any money back.

The money provided by the non-owner could be classified as a loan, with a formal document (Deed), so that they could claim that money back.

PokerPlayer111

Pixie5740 wrote: »

Do you require a mortgage? If so good luck getting a lender to agree to part of the deposit coming from someone living in the property but not named on the mortgage.

If no mortgage is required is one person willing to give away half the value of the property and have no beneficial interest in the property to save a few thousand in SDLT? Why as a couple would you want to own two properties between you if you will only be living in one?

Its cash buy and yes 1 would be willing to have other person on deed because we'd be buying another house for family member later on.

In this case 1 person would be "handing" another person 100k in the form of a house deed is that not seen as shady? doesn't the tax man have a problem with this? does the house need really mean entire ownership of the house asset?

Pixie5740

PokerPlayer111 wrote: »

Its cash buy and yes 1 would be willing to have other person on deed because we'd be buying another house for family member later on.

If one person is willing to give away tens, if not hundreds of thousands of pounds in order to save a few thousand in SDLT then (s)he can.

PokerPlayer111 wrote: »

In this case 1 person would be "handing" another person 100k in the form of a house deed is that not seen as shady? doesn't the tax man have a problem with this? does the house need really mean entire ownership of the house asset?

:huh:

lisyloo

In this case 1 person would be another person 100k in the form of a house deed is that not seen as shady?

Can you re-type this so it makes sense.
Not being sarcastic but we can't answer questions that don't make sense.

does the house need really mean entire ownership of the house asset?

And this. need=deed?

Bascially if you are mis-representing the situation to evade tax then that's tax evasion.

Its cash buy and yes 1 would be willing to have other person on deed because we'd be buying another house for family member later on.

Gifting it? renting it?

Please explain what's going on, but if you're lyign to gain a tax benefit then it's probably tax evasion which is a criminal offence.

PokerPlayer111

Ok i will try and explain better sorry:

Long term GF has £100k cash due to cashing out of an asset this year.
I also have 100k cash due to cashing out of an asset this year.
We both have our capital gains set asside to pay for this.

Our plan is to buy 1 house to live in then buy another house for family member at a later date when we have more money but both keep our names on the deeds of both houses seperately. But we save more money if we do both properties as FTBers and also if we split up we can both go our seperate ways each having 1 house each.

We do evade extra tax this way due to both being first time buyers on 2 properties but its legal?

kingstreet

You can only claim FTB SDLT exemption on a property in which you intend to reside. SDLT would therefore be payable on a property intended for the residence of a relative.

Lokolo

You don't say how much the houses are. But there are a couple of things

- You can buy in cash and you can have 1 person on the deeds. The other person who has given cash and is not on deeds has no right to the property or to live in it (so if purchase with your partner using both your cash deposits, she can choose for you to leave and you have lost that money)

- The other person could then purchase, as a FTB, a property. However they would need a mortgage (unless you have enough cash to purchase 2 properties outright), in which case they would need to live in this property unless;

- If you are purchasing a property for someone else to live in then it becomes much more complicated. You would (GM please correct me if I am wrong) become a landlord, you would need to have a Buy to Let mortgage and carry out all duties as a landlord. There are few, if any, BTL mortgage that would allow someone to have one without owning their own other property first. You would need to pay SDLT but not the additional property tax

edit -

Your comment about splitting up and having 1 property each only makes sense if you both put the same amount of £ in each of the properties and the same mortgage amounts, otherwise it's not equal

PokerPlayer111

kingstreet wrote: »

You can only claim FTB SDLT exemption on a property in which you intend to reside. SDLT would therefore be payable on a property intended for the residence of a relative.

aha really? however we would still have additional 2nd property SDLT tax if we put both our names on the deeds of each property.

PokerPlayer111

Lokolo wrote: »

You don't say how much the houses are. But there are a couple of things

- You can buy in cash and you can have 1 person on the deeds. The other person who has given cash and is not on deeds has no right to the property or to live in it (so if purchase with your partner using both your cash deposits, she can choose for you to leave and you have lost that money)

- The other person could then purchase, as a FTB, a property. However they would need a mortgage (unless you have enough cash to purchase 2 properties outright), in which case they would need to live in this property unless;

- If you are purchasing a property for someone else to live in then it becomes much more complicated. You would (GM please correct me if I am wrong) become a landlord, you would need to have a Buy to Let mortgage and carry out all duties as a landlord. There are few, if any, BTL mortgage that would allow someone to have one without owning their own other property first. You would need to pay SDLT but not the additional property tax

edit -

Your comment about splitting up and having 1 property each only makes sense if you both put the same amount of £ in each of the properties and the same mortgage amounts, otherwise it's not equal

We would only be buying 2nd property when we have cash to buy outright and we intended to rent it to relative for £1 per month etc (basically nothing) - its to help them to not have rent or mortgage ever etc.