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Buying house with partner - stamp duty costs
homebuyer5
Posts: 1 Newbie
Hello
I have just had an offer accepted on a property to buy with my partner.
We plan (eventually) to own the house as tenants in common with equal shares.
His house sold recently so we plan to use the money from that sale together with a mortgage to finance our purchase initially. (We needed to be chain free to win the bidding war!)
My house will go back on the market now (previous sale fell through as we took so long to find anywhere). When it sells I will pay a chunk off the mortgage we take on the new property with the equity from my sale.
My question is about the cheapest way to do this two step process - both with respect to legal fees and stamp duty (is actually Land Transaction Tax as we live in Wales)
The initial plan was for him to buy as an individual and for me to then buy in later - but I understand this means paying stamp duty 'twice' - once on whole house purchase, then again on my half.
Is there a way I can be named at the time of purchase when the new house becomes my main residence (either without a financial contribution - or with paying a smaller sum from savings) and then for the money to change hands between us when I have proceeds of my sale? Would that make a difference or might it mean I had to paying the second home rate stamp duty and then getting a later rebate once my house sold?
Is this process likely to incur a lot of additional legal fees?
Grateful for any advice
Thanks in advance
I have just had an offer accepted on a property to buy with my partner.
We plan (eventually) to own the house as tenants in common with equal shares.
His house sold recently so we plan to use the money from that sale together with a mortgage to finance our purchase initially. (We needed to be chain free to win the bidding war!)
My house will go back on the market now (previous sale fell through as we took so long to find anywhere). When it sells I will pay a chunk off the mortgage we take on the new property with the equity from my sale.
My question is about the cheapest way to do this two step process - both with respect to legal fees and stamp duty (is actually Land Transaction Tax as we live in Wales)
The initial plan was for him to buy as an individual and for me to then buy in later - but I understand this means paying stamp duty 'twice' - once on whole house purchase, then again on my half.
Is there a way I can be named at the time of purchase when the new house becomes my main residence (either without a financial contribution - or with paying a smaller sum from savings) and then for the money to change hands between us when I have proceeds of my sale? Would that make a difference or might it mean I had to paying the second home rate stamp duty and then getting a later rebate once my house sold?
Is this process likely to incur a lot of additional legal fees?
Grateful for any advice
Thanks in advance
0
Comments
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Just buy it jointly and later on pay a chunk off the mortgage from the equity from your house sale0
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If the house you now own is your main residence and the house you are buying together is intended as your main residence then maybe buy as TinC now and reclaim the extra 3% LTT provided you can be confident you will sell the old house within 3 years.
You can have an initial deed of trust on the new house which reflects your unequal contribution and this can be updated when you sell your own house and pay off some of the mortgage.
Take into account any early repayment charges on the mortgage before you buy, so that if possible you can invest your chunk without incurring a repayment charge.0
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