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Buy house in one name, shared equity contractually?

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Comments

  • Craig660
    Craig660 Posts: 65 Forumite
    edited 24 April 2018 at 8:35PM
    getmore4less wrote: »
    SDLT is based on beneficial ownership.

    That my might mess up to the tax evasion plan

    So the contract we have in place would somehow need to be declared? To HMRC ?
  • Craig660
    Craig660 Posts: 65 Forumite
    SDLT_Geek wrote: »
    It does not help for SDLT to have the property !!!8220;in the name of!!!8221; one person if beneficially it belongs to two people, the other of whom is not a first time buyer.

    Apologies, but can you please clarify what you mean
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Craig660 wrote: »
    No we are both FTB, but we also want the option to buy a second property without any stamp duty

    Thanks

    That won't work unless you have bought both properties before getting married,
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Craig660 wrote: »
    So the contract we have in place would somehow need to be declared? To HMRC ?

    That's the way taxes work in the UK you need to know what you are supposed to be paying.

    You need to review your understanding of SDLT and how it is calculated.
  • SDLT_Geek
    SDLT_Geek Posts: 3,043 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Craig660 wrote: »
    Apologies, but can you please clarify what you mean
    SDLT is due from a purchaser. So you must first identify the purchaser. This is not as simple as seeing in whose name the property is to be registered. One looks through to the true underlying owners, that is the beneficial owners. They are the people who would be entitled to the rent, or to the sale proceeds if the property is sold for a sum exceeding the mortgage debt.

    So if a property is bought in the name of A alone, but holding on trust for A and B, then A and B are the purchasers. Whether first time buyers' relief and whether the higher rates of SDLT apply will depend on the circumstances of both A and B.
  • WorkingTowardsDebtFree
    WorkingTowardsDebtFree Posts: 75 Forumite
    Craig660 wrote: »
    I agree with what you are saying and it is in fact the other way around but my partner doesn't see it this way.

    Fair do's... And apologies for jumping to a different, and wrong, conclusion!
  • firstbuyer
    firstbuyer Posts: 165 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    So how and where could I get this legally binding agreement?

    Ask your solicitor for a declaration of trust.
    Finally completed on our new home
    Cladding Scandal Activist
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