SDLT: mortgage vs title deed

GeraldTheMole

Quick story: we are splitting up, albeit very amicably. To avoid early repayment fees on the existing mortgage, I'm being advised to keep it, but borrow more to pay off my partner's share (agreed in a pre-existing legal document). We're doing this by keeping her ON the mortgage (because she has a longer repayment term available to her as I am older), but taking her OFF the title deeds to the property.

She's fine with this so long as she doesn't get hit for stamp duty (SDLT) at the second-home buyer rate when she buys her next property. So the question is this: as one named on a mortgage but NOT on title deeds, will she be considered a second-home buyer or not?

Many TIA.

mrginge

Has she completely lost her marbles?

Pixie5740

GeraldTheMole wrote: »

Quick story: we are splitting up, albeit very amicably. To avoid early repayment fees on the existing mortgage, I'm being advised to keep it, but borrow more to pay off my partner's share (agreed in a pre-existing legal document). We're doing this by keeping her ON the mortgage (because she has a longer repayment term available to her as I am older), but taking her OFF the title deeds to the property.

She's fine with this so long as she doesn't get hit for stamp duty (SDLT) at the second-home buyer rate when she buys her next property. So the question is this: as one named on a mortgage but NOT on title deeds, will she be considered a second-home buyer or not?

Many TIA.

When you say partner do you mean girlfriend or spouse?

Will she still be a beneficial owner of the property if not a legal owner?

Tom99

[FONT=Verdana, sans-serif]Will your mortgage co allow that?[/FONT]
[FONT=Verdana, sans-serif]If they will then your ex will not pay the extra 3% stamp duty but I imagine would struggle to get another mortgage unless her salary is so high as to support two mortgages.[/FONT]
[FONT=Verdana, sans-serif]But as said above, she would be taking a very big risk, guaranteeing what will effectively be your loan. What if you lose your job and can't pay up, she will be liable, what agreement will there be that you would pay her back.[/FONT]
[FONT=Verdana, sans-serif]Will she be able to force you to sell once the mortgage fixed rate ends?
[/FONT]

G_M

mrginge wrote: »

Has she completely lost her marbles?

Please sir! Please! Please... Me...me! I know the answer!

steampowered

You cannot make any changes to the title registration without the lender's consent.

Most lenders will insist on the people named on the mortgage being the same as the people who own the property.

Also remember that your wife probably won't be able to obtain a new mortgage if she is still listed on the mortgage for your current property. The mortgage will continue to show up on her credit report and I doubt a lender would allow her to have two mortgages, unless her income is enough to pay both mortgages.

Unfortunately it is sounding like your only option might be to remortgage the property in your sole name, which may mean paying the early repayment charge.