Saving for a house deposit - best savings route?

masonic

Is this some sort of guarantor mortgage? In which case she could potentially be released from the mortgage if the LTV is now lower than it was, or the account has been in good standing for a period of time. Although if that's the case, she would have had to pledge additional funds/assets in guarantee, which doesn't seem to fit the situation.

SDLT_Geek

twotonealex wrote: »

My partner is on a mortgage with her parents (for where we currently live) so unfortunately is not a first time buyer.

You might want to revisit this assumption. From your later posts it seems that your partner has no beneficial interest in the property and so, despite being "on the mortgage" might still be a first time buyer for SDLT purposes.

xylophone

Is this some sort of guarantor mortgage? In which case she could potentially be released from the mortgage if the LTV is now lower than it was, or the account has been in good standing for a period of time. Although if that's the case, she would have had to pledge additional funds/assets in guarantee, which doesn't seem to fit the situation.

This all seems rather odd.

It is possible to get a sole proprietor /joint mortgagee arrangement - you see this where a young person wants to buy but doesn't have the income to support the mortgage - the parent doesn't want to be named as an owner (and end up with extra stamp duty/CGT considerations) so the offspring is sole proprietor with the parent sharing the liability for the mortgage but having no ownership.


It seems that despite his partner's parents having paid the deposit and apparently having enough income to support the repayments, the partner was required for "affordability".

If the partner is not named as an owner of the property, is she still a first time buyer?

And is she in fact paying her father rent?

xylophone

And is she eligible for a LISA for the house purchase?

twotonealex

Thanks all!

Checked with the inlaws - my partner IS on the deeds

Frustrating but thankful we are in a situation to save.

If anyone has any input on my savings plan please let me know!

Cheers!

twotonealex

xylophone wrote: »

And is she eligible for a LISA for the house purchase?

Based on my last post, it would seem not.

twotonealex

I appreciate the potential arguments that could be put forwards for her not being an 'owner' but in this case, but the pros of her parents subsidising our living/saving (by our small contribution to the mortgage) outweigh any additional funds we would have saved by her being a FTB.

Thanks all

xylophone

If she is an owner and in fact is contributing to the mortgage by paying over money to the father to enable him to pay the mortgage, then she is entitled to a share of the equity?

And this is her PPR - if it is sold when you are going to move out then there is no CGT on her share?

And if it is not sold and you are buying a house together then there will be extra SDLT to pay?

I think that you should be taking advice as to the ramifications of this arrangement.

twotonealex

xylophone wrote: »

If she is an owner and in fact is contributing to the mortgage by paying over money to the father to enable him to pay the mortgage, then she is entitled to a share of the equity?

And this is her PPR - if it is sold when you are going to move out then there is no CGT on her share?

And if it is not sold and you are buying a house together then there will be extra SDLT to pay?

I think that you should be taking advice as to the ramifications of this arrangement.

I will make sure this is discussed.

Thanks for your help!