Joint borrower sole proprietor mortgage

meticulous29

Hello all

I have looked through the forms about this issue and haven't been able to find anyone who has successfully been through the process of getting a joint borrower sole proprietor mortgage with their partner. I know this is possible but ideally would like a solution to trying to protect myself as much as is possible. I know I can do a cohabitation agreement but also wondered about the possibility of a loan agreement to protect the initial deposit.

If anyone has been through this please help.

Many thanks :-)

[Deleted User]

meticulous29 wrote: »

Hello all

I have looked through the forms about this issue and haven't been able to find anyone who has successfully been through the process of getting a joint borrower sole proprietor mortgage with their partner. I know this is possible but ideally would like a solution to trying to protect myself as much as is possible. I know I can do a cohabitation agreement but also wondered about the possibility of a loan agreement to protect the initial deposit.

If anyone has been through this please help.

Many thanks :-)

Will you both be living in the property and paying the mortgage? If so why should you be the only owner? How is that fair to your partner? You could easily have a 'normal' joint mortgage with a Deed of Trust in place documenting the unequal deposit.

meticulous29

Hi Thanks I understand that and it's not our preference but we didn't know about the additional stamp duty until now and I am not able to sell my other property at the moment so this is our only option, I just want help in order to make the best of this situation.

[Deleted User]

meticulous29 wrote: »

Hi Thanks I understand that and it's not our preference but we didn't know about the additional stamp duty until now and I am not able to sell my other property at the moment so this is our only option, I just want help in order to make the best of this situation.

Sorry, I thought you meant you were providing the deposit and would be the sole proprietor in this scenario.

SDLT is based on beneficial ownership not legal ownership so I'm not sure a joint borrower sole proprietor mortgage where you want to protect your share of the deposit and occupy the property will get round the higher rate of SDLT rules because it sounds very much as if you will be a beneficial owner.

meticulous29

Hi it does work. I know I can do it was just hoping to speak to someone who has been through it

G_M

meticulous29 wrote: »

Hi it does work. I know I can do it was just hoping to speak to someone who has been through it

It works so long as the fraud goes undetected ie if the registered owner fails to declare to HMRC the Beneficial Owner's 2nd property status and only pays standard SLT.

SDLT_Geek

The JBSP idea is unlikely to work satisfactorily when the person not on the title to the property is putting in capital. There is an article about it here: https://www.taxadvisermagazine.com/article/additional-properties

purpleumbrella

meticulous29 wrote: »

Hi it does work. I know I can do it was just hoping to speak to someone who has been through it

You asked in your OP if it was possible to 'protect the initial deposit'. As the other poster explained, you cannot avoid the additional SDLT if you have a beneficial interest in the property.