Joint borrower sole proprietor mortages - allowed to share ownership in future?

tomocat3

I hear that going for a Joint borrower sole proprietor mortgage could allow a first time buyer to access a larger mortgage with help from someone who already owns a property, and crucially, avoid stamp duty that would otherwise be payable if the other person were also named on the needs of the property.

My understanding is that this type of mortgage avoids stamp duty by having only the first time buyer as the legal owner of the property. However, what is there to prevent the other person from being added on as a shared owner together with the first-time buyer at some future date after the purchase of the property has gone through?.

LRmortgage

If you add them to the deed at a later point, they would then become liable for stamp duty at that point.

Thrugelmir

Regarding stamp duty.

"Where an individual (who is not a spouse or civil partner of another purchaser) is one of the purchasers of a dwelling but they will have absolutely no beneficial interest in the property, they will not be treated as a joint purchaser of that dwelling. This would have to be evidenced in writing. Any future entitlement to capital proceeds from the sale of the property, to income or to occupy the property would mean that they do have a beneficial interest."

No time limit.

SDLT_Geek

There is an article about joint borrower and sole proprietor mortgages and SDLT here: https://www.taxadvisermagazine.com/article/additional-properties

It tends not to work to have one party as the only owner if the other is putting in any capital.