SDLT rule for married couple but sole ownership

vahidfar

Hi all,

We are a married couple and looking to actually buy our first home.
I am a first time buyer, never owned a property anywhere in the world, however my wife last year inherited a tiny flat out of the UK in a European country which was worth under £30k and she has now sold that flat to put the money towards our deposit.
I understand that if we buy together, we would not be entitled for the first time buyer SDLT relief, but was wondering what if we get a joint mortgage with sole proprietor ? putting only my name on the deed.
I know if we go down this route our choice of mortgage will be limited to few lenders that actually would agree to do that and also she needs to seek legal advice etc, but wanted to know if then the SDLT relief would apply or not?
I also called the SDLT helpline to ask and they said, it's a bit grey area and we can not answer that question, refer to the guide note on this and it's a self assessment situation. Reading the guideline , it does NOT say married couple considered one unit but I'm still not sure.

Can anyone help please or share their ideas?

Many thanks

SDLT_Geek

Married couples are not treated as a single unit for SDLT.

There is a rule for the higher rates of SDLT (the 3% surcharge) that if one spouse alone buys then you have to treat the other spouse as a joint buyer. If for either spouse the higher rates would have been due then the higher rates are due on the transaction as a whole.

This is relevant to you because there is a rule that first time buyers' relief is not available if the higher rates apply. The higher rates will not apply here as your spouse has no property interest worth £40k or more.

For first time buyers' relief there is no rule deeming a spouse to be a joint buyer. So if you alone are to be the only owner of the property it seems that first time buyers relief is available if the other conditions are met.

Do note though the requirement that you are the only owner. That goes beyond you being the only person named on the registered title. It is important that the underlying ownership belongs to you alone. It does not work if she is to have a share in the property.

vahidfar

Thanks a lot, Should we tell from the beginning to the lender that we want a joint mortgage sole ownership? I mean how the process for these type of mortgage differs from normal ones?

Keep_pedalling

Was the house sold by the executor, or was the house actually put into her name before it was sold?

vahidfar

Was put into her name last year and we sold it this year