Remortgaging BTL - Adding Partner For Joint Mortgage

GeddyMortgage

Hello,

Waiting for a call back from a mortgage advisor later this week to answer this question. Seemed prudent to ask on here in the mean time. As the information i've seen online is conflicted.

Current Circumstance, me and my girlfriend live together, Joint mortgage on a residential.

I own two homes separately, both in my name, both on BTL mortgages. One of which has the end of its fixed term come the end of Feb 2018. The problem is when I go through the affordability for remortgaging this one. My total income apparently is not enough for all the lenders i've tried.

I was looking into adding my partner onto this to help the affordability. Though i've read that if we do this, we'd be subject to pay stamp duty again. (Property valuation on this one is £240k) Can anyone confirm this is correct? and potentially what options we have?

P.S I am aware of Barclays' Joint Borrower Sole Proprietor mortgage as a potential, but that appears to come with all kinds of complications too.

thanks so much,

AnnaB

TrickyDicky101

It's the size of the mortgage required on the property (not its valuation) that is important. Assuming you are not planning on asking your partner for additional cash then if the mortgage is over £80k (so partner's element is >£40k) then I believe you will be liable to the additional 3% SDLT on the entire mortgage balance. If the mortgage is >£250k then you will also be liable to normal rate SDLT (although that seems unlikely given the valuation).

That's my understanding, anyway.

GeddyMortgage

Oh I see, thanks, I did not know it was based on the mortgage amount required rather than the valuation price, it's still pretty steep, mind.

The amount to borrow is £168k, which would mean, 3% SDLT on the first £125k and 5% on the remaining £43k. £3750 + £2150, so still around £6k-ish. Money i'd prefer to spend somewhere else.

TrickyDicky101

It would be worth waiting for others to post as the 3% may not apply to the entire mortgage balance (maybe just half of it - need someone else more knowledgeable to confirm).

There will not be any 'standard' SDLT payable as the total mortgage is below £250k (so partner's deemed share will be below £125k where standard SDLT begins).

GeddyMortgage

Interesting, thanks for the information.

In your knowledge, by the virtue that the stamp payable is based on my partner's inherited share. Would that mean for an extreme example, if she was to be given 2% equity in my property. It is only the 2% of the £168k that would be payable?