Stamp Duty Help!! - Unmarried Couple - Buying a home

Squibworth

Hello,

I am hoping for some factual advice from any legal eagles or finance professionals. I will try and keep to the facts as concisely as possible and if anyone can help or need more information please shout.


We are according to UK law, an unmarried couple and are looking to purchase a house which we will move into. I own - 2 properties 100%which are currently let out and 50% of a property which is where we currently live.

The 50% property is the one we are co-habiting in and living along with family as our current residence. The family members will remain in this property.

My partner is not a first time buyer and does not currently own a property. She has previously owned a property and this is now longer in her name - so I believe she will not qualify as a FTB?

I am trying to figure out the best option to convey the property to not get hit with the higher SDLT.

As far as I see it - the options are to purchase the property as:

1) Joint Names - Not sure where the SDLT will sit?
2) Sole ownership in Wife Name - I believe this will be the lower SDLT threshold? Potentially act as the guarantor of the mortgage.

3) Sole Ownership - My name - I believe this will put me at the higher SDLT?

Could really do with some advice if anyone is able to spare a few minutes.

Thank You.
Squibworth.

00ec25

1, if purchased as joint owners then the higher rate SDLT will apply since one of you has additional properties and you are not selling your current main home therefore cannot claim the "replacement" clause. The rules are tested for each purchaser individually, if one fails they both fail , it is not done as a his share and her share. It is all or nothing.


what will happen to the 50% you currently own?


2. correct
3. correct

Squibworth

Thanks for the reply.

The 50% will remain my 50% and will be fulfilled in accordance with the wishes of family members upon their passing, where it will then be transferred to the other person who owns the 50%. Potentially I could look at transferring that now as an option or within 3 years after moving.. I believe a rebate is then payable.

If following step (2) - this raises another query in my head - if conveyed in the sole name of my partner - this obviously leaves an exposure to risk in the event of a breakdown. I presume my name could not be on the deeds or on the mortgage if purchased in her sole name? I have heard something about a 'Gift' or declaration of gift as an option.. Not sure?

I forgot to mention - would it make a difference if this is purchased as a BTL property/mortgage?

unforeseen

Unmarried couple but she is your wife?