Buying a 2nd property unmarried couple

dnesdlrow

I live in rented accommodation with my partner. I currently own a flat which I am about to remortgage on a buy to let and release equity to contribute towards another property that my fiance is going to buy in her name. She doesn't own a property but is not a 1st time buyer.
The new property is in Scotland and is sealed bids closing this Thursday.

Will we have to pay the additional 4% stamp duty (LBTT) on the new property if it is solely in my partners name but I have contributed to the funding of it?

We're planning on getting married end of June. Will this affect the situation a) if we complete before we're married or b) complete after we're married?

Thanks!

Sachs

I'm not sure about the marriage bit but you need to be clear on what you're doing. You are gifting your partner a load of money and she is buying a house. That house is hers. She can sell it when she like and doesn't have to ever give you a penny. I hope you never have a falling out and expect to see that money again.

Also you're unlikely to find a mortgage provider who will let you be on the mortgage if you have no interest in the property.

AnotherJoe

dnesdlrow wrote: »

I live in rented accommodation with my partner. I currently own a flat which I am about to remortgage on a buy to let and release equity to contribute towards another property that my fiance is going to buy in her name. She doesn't own a property but is not a 1st time buyer.
The new property is in Scotland and is sealed bids closing this Thursday.

Will we have to pay the additional 4% stamp duty (LBTT) on the new property if it is solely in my partners name but I have contributed to the funding of it?

We're planning on getting married end of June. Will this affect the situation a) if we complete before we're married or b) complete after we're married?

Thanks!

If its solely in her name before you get married you should not have to pay the extra tax but you will have to sign a form saying that its a gift (not a loan) unless the mortgage co is OK with it being a loan, and in the latter case they most likely will be unhappy with you living in it.
If you marry and then buy then you have to pay the extra tax even if its only in her name.

One step forward, two back

AdrianC

You solely own a property.
You are planning to remortgage that property, and gift the money raised to somebody else.
That other person is going to take your gift of money, and solely buy a property with it.
They own no other property currently.

No, they are not liable for the additional SDLT, because they are not buying an additional property.

The only time you would be regarded as a single entity is if you are married at the time of the sale completing.