If i add GF to house deed now what will it mean?

PokerPlayer111

Me and the GF share everything equal but our 1st house bought is 100% with cash from my funds and in my name. Currently she holds more of our cash in general to even this out. However she feels like crap not "owning our house".



1.) If i add the GF to the deed will she lose her first time buyer status? (shes a first time buyer currently if she were to buy a house) - trying to work out how she has some kind of claim on the house because it sucks for her.



2.) In the future we may buy a different house (lets assume its under 300k for now) the GF going to use her first time buyer status for this.... but i want to be added as an owner several months later or maybe a year when current house is sold. At the point im added on deed of 2nd house (but we would only at that point own 1 house) do i pay stamp duty?


At the moment the only solution we have is i set a will so she gets the current house if i die. Any other ideas on how she can have more of a claim on the current house but not lose her first time buyer status? (at the moment though just the will idea seems best hmmm)

Cakeguts

How can you be sharing everything if you own the house and she is holding onto the cash? It sounds as if you each own something that the other can't share.



In the unlikely event that you split up and she owns half the house you may have to sell in order for her to get her half but how do you get your hands on half of her cash?

Throwaway1

If she is named as owning some of your house she isn't a first time buyer (unless she owns a share worth under 40k). The 'first time buyer' status is to help people who otherwise couldn't afford a house, your girlfriend will have (at least part of) one so she doesn't need this help. If you use your girlfriend's first time buyer status to buy a house more cheaply then add your name on later then yes, you would have to pay stamp duty on it (but not the 3% surcharge for owning 2 properties so long as you sold your first one within 36 months).


I'd keep the house as all yours and then when you buy together later just pay the stamp duty and forgo her first time buyer status as you both need to have it if you are buying as a couple. It's risky putting her name on your deeds as if you split up she gets half of your house but good luck getting half of her cash!

Pixie5740

PokerPlayer111 wrote: »

Me and the GF share everything equal but our 1st house bought is 100% with cash from my funds and in my name. Currently she holds more of our cash in general to even this out. However she feels like crap not "owning our house".



1.) If i add the GF to the deed will she lose her first time buyer status? (shes a first time buyer currently if she were to buy a house) - trying to work out how she has some kind of claim on the house because it sucks for her.



2.) In the future we may buy a different house (lets assume its under 300k for now) the GF going to use her first time buyer status for this.... but i want to be added as an owner several months later or maybe a year when current house is sold. At the point im added on deed of 2nd house (but we would only at that point own 1 house) do i pay stamp duty?


At the moment the only solution we have is i set a will so she gets the current house if i die. Any other ideas on how she can have more of a claim on the current house but not lose her first time buyer status? (at the moment though just the will idea seems best hmmm)

1) Yes she will lose her FTB status in terms of SDLT if you give her an interest in your property. The definition of a FTB is in the Guidance Note. That may or may not be an issue in the future depending on whether the FTB relief still exists when she comes to buy somewhere herself.

2) I don't think you'd pay any SDLT providing you aren't paying a consideration to have your name added to the deeds.

Pixie5740

Your girlfriend could give you some of the cash and buy into the property so that you can jointly own it as Joint Tenants or Tenants in Common. I thought that's what you were going to do originally going be a previous thread. At the moment your girlfriend has absolutely no claim to your (plural) home unless you die all for the sake of maybe saving £5k further down the line using a SDLT relief that might not even be on offer then.

If you aren't keen to make her a joint owner of your home now why would she want to make a joint owner of her home further down the line? Why wouldn't you be happy to have no interest in the future £300k home?

sal_III

If there is a significant amount of financial trust between you, why does she care if her name is on the deed or not? After all, you paid for 100% of it and it's not like she is paying half the mortgage without being on the deed. It's still her home - she lives in it, doesn't need to own it to call it home, just as if you were renting.

If the trust is not sufficient, under the circumstances I would be very wary of gifting her 1/2 the house + leaving her holding >1/2 of the joint savings.

PokerPlayer111

Well another advantage of doing it the current way is if we do buy another house we probably will buy chain free stamp duty free in her name. Giving us no deadline to sell current property but if her name is on this deed we will have 2nd property stamp duty if we buy another house before we sell this one wont we?


Current plan is we might buy a different house in 2-3 years btw. (we will know by then if we are staying put or not)

PokerPlayer111

sal_III wrote: »

If there is a significant amount of financial trust between you, why does she care if her name is on the deed or not? After all, you paid for 100% of it and it's not like she is paying half the mortgage without being on the deed. It's still her home - she lives in it, doesn't need to own it to call it home, just as if you were renting.

If the trust is not sufficient, under the circumstances I would be very wary of gifting her 1/2 the house + leaving her holding >1/2 of the joint savings.

We do trust eachother but random things can still happen. Either one of us can go crazy for example etc.

davidwood681

Don't do it.
The chances are the relationship will fail and you will wish you'd never got involved in what you're planning to do

PokerPlayer111

davidwood681 wrote: »

Don't do it.
The chances are the relationship will fail and you will wish you'd never got involved in what you're planning to do

well yeah its possible but we have been together 12 years now, we just dont like marriage concept much up to now.

Pixie5740

PokerPlayer111 wrote: »

Well another advantage of doing it the current way is if we do buy another house we probably will buy chain free stamp duty free in her name. Giving us no deadline to sell current property but if her name is on this deed we will have 2nd property stamp duty if we buy another house before we sell this one wont we?


Current plan is we might buy a different house in 2-3 years btw. (we will know by then if we are staying put or not)

That would make you no different to most other home buyers who have to sell and buy simultaneously. Even if you did want to give yourself some breathing space between the two transactions you have 36 months from completing on the new home to sell the previous residence and reclaim the additional SDLT.

Other than being chain free and potential SDLT benefits why would you expect to become a joint owner of the property she buys when you're not keen for her to become a joint owner of the property you bought? If there's nothing wrong with the current situation in your eyes why would you want to be added to the deeds of her house?

Will a £300k budget buy you your dream home in the future or are you arbitrarily setting the budget to £300k because of the SDLT relief?