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New main residence - Stamp Duty
jayu619
Posts: 239 Forumite
Hi!
I am hoping to get some clarification.
I have a rental property under my name. Current main house is under my parents name. Youngest brother does not have a property under his name. We would like to buy a new family (main) home with the intention of putting it under youngest brother's name as it will become his first home.
However, my father, youngest brother and I have a mortgage in place for this new family home.
On the title deeds etc, would we put just my brother's name or do we have to have all 3 of our names whose on the mortgage, on title deeds?
The above is in relation to how much stamp duty we have to pay - the rate of first time buyer (for youngest brother) or the second home as both father and I have a home under our names.
Any help would be much appreciated.
Thanks,
Jay
I am hoping to get some clarification.
I have a rental property under my name. Current main house is under my parents name. Youngest brother does not have a property under his name. We would like to buy a new family (main) home with the intention of putting it under youngest brother's name as it will become his first home.
However, my father, youngest brother and I have a mortgage in place for this new family home.
On the title deeds etc, would we put just my brother's name or do we have to have all 3 of our names whose on the mortgage, on title deeds?
The above is in relation to how much stamp duty we have to pay - the rate of first time buyer (for youngest brother) or the second home as both father and I have a home under our names.
Any help would be much appreciated.
Thanks,
Jay
0
Comments
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You would need the lender to agree to you have the mortgage in 3 names but the property only in 1 name.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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It does not help you for SDLT to have the property just !!!8220;in the name of!!!8221; one person. For SDLT you have to !!!8220;look through!!!8221; to the underlying ownership.
So if you and your father are putting in capital too it is very likely that you will have shares in the property. So first time buyers relief is not available, but the 3% surcharge is likely to be due.0 -
Thank you both.
We weren't sure which rate of tax we pay. Will consult solicitors and make sure we pay the correct SD rate and not get fined.0 -
as above, if you and father intend to retain a right to receive a share of the money when the property is finally sold then this is an additional property purchase for you since you are not selling your BTL and so the higher rate SDLT will apply to all 3 of youThank you both.
We weren't sure which rate of tax we pay. Will consult solicitors and make sure we pay the correct SD rate and not get fined.
You state new family main home but then state it will be brother's first home. What are you trying to achieve?
Is father 's home going to be sold and all 3 of you will move into the new property, or is brother going to live there by himself?
If all 3 of you are going to be owners, what happens when you or brother want to move out and need to sell your share to get the money to buy a place of your own?
Making sure you understand the higher rate SLT liability is an excellent start point, but seems to me there are other implications not yet covered?0
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