Stamp duty - is mortgage broker wrong?

superstylin

Hi all,

I currently own one property and my partner owns a seperate property, we do not live together in either and are not married/civilly partnered. I have recently sold my property and have an offer accepted on another that I am buying on my own (partner is not on the mortgage/deeds).

My partner and I plan to move into my property once I have completion and my partner has arranged a consent to let on their property so they can get a tenant in essentially to pay their mortgage.

Hopefully you're with me so far because here's the rub - the mortgage broker is telling me that my partner cannot immediately move into my new property and certainly shouldn't be named on any bills because I could then be hit with the higher rate of stamp duty (3%) because we then each have an interest in 2 properties. He also says we should not have any joint finances in the immediate future for the same reason.

Is he talking tripe? As far as I can tell the higher rate of stamp duty only applies to those who are married or civilly partnered.

Thanks ahead of time for any answers!

AdrianC

If you are not married or in a civil partnership, and you are genuinely the SOLE owner of this property - and you are not a joint owner of any other property - then you are good to go on this one without the +3% SDLT.

He's simply being cautious in case of HMRC deciding to launch an investigation in case you are being less than fully frank and open in terms of the actual ownership.

AnotherJoe

I concur, with no marriage or civil partnership you are two individuals and so "normal" SDLT rules apply, eg no extra 3%. Otherwise people would be paying extra SDLT every time they shacked up with someone who happened also to own a house. What does he think, you can claim a refund if she moves out again within 3 years? Silly broker.

superstylin

Thank you both for your replies.

Thankfully you seem to think along the same lines as me. Most research I've done tells the same but there have been a couple of websites mention cohabiting couples getting onto rocky ground, though the way I look at it we haven't even been that in the past so definitely shouldn't come a cropper?!

The broker had me thinking that my OH wouldn't be able to change her GP to one at my address, or bring her digital TV package over to my property (she's tied in for another 10 months) or have her postal address changed at work for payroll etc.