Buying my first house with partner who owns multiple properties

Moneyminded

You say you have been together 2 years but have never lived together yet your partner has 2 properties. Could you not move in together in 1 of these properties to save all the buying fees and SDLT? 

SDLT_Geek

ACG said:

Lover_of_Lycra said:

Im not saying I disagree with you, but there are solicitors who appear to think otherwise when the couple are not married. They are the ones who have to advise on that (mortgage brokers are not allowed to). What you have said is/was my understanding but having seen countless times where solicitors do allow it, I tend to take a step back and let solicitors/applicants sort it out as I can only assume the solicitors would be on the hook if it goes wrong. 

It will be the buyers who are on the hook for the extra SDLT in the first place.  HMRC could ask questions about whether the buyers have been evading SDLT by the use of "camouflage mortgages" (as the Daily Telegraph of all publications called joint borrower sole proprietor mortgages).
Beware!!

TN1984

ACG said:

Lover_of_Lycra said:

ACG said:

You should sit down with a good experienced broker, there are various ways to do this and they can talk them through with you to decide which is best for you.
Joint Borrower sole proprietor could be a way to avoid the higher rate stamp duty (but you need to get legal advice on that),
There are other lenders who will allow a single application with your partner paying the deposit - he can even put a charge on the property until you are both happy to remove it to secure his deposit with one of those. 
Some lenders will accept a loaned deposit, so that could be another option. 

A JBSP mortgage will not help avoid the higher rate of SDLT. SDLT is based on beneficial ownership not legal ownership and it is difficult to argue that one is not a beneficial owner of the property that one lives in and pays the mortgage on. It won't fly with HMRC. 

Im not saying I disagree with you, but there are solicitors who appear to think otherwise when the couple are not married. They are the ones who have to advise on that (mortgage brokers are not allowed to). What you have said is/was my understanding but having seen countless times where solicitors do allow it, I tend to take a step back and let solicitors/applicants sort it out as I can only assume the solicitors would be on the hook if it goes wrong. 

I wouldn't count on that. Whenever I have seen solicitors get the stamp duty wrong, for various different reasons, it has still been the buyer that has had to stump up the extra.

denisekingston

Moneyminded said:

You say you have been together 2 years but have never lived together yet your partner has 2 properties. Could you not move in together in 1 of these properties to save all the buying fees and SDLT? 

His main home is a studio not big enough for 2 of us. The other is too far from where we live.

csgohan4

if he has such a high salary, stamp duty of that range could be pocket money for him, 
However I would sit down with him to see what the real reason is, stamp duty aside. 2 years may not be long enough for him to commit for example

As above why do you have no significant savings?

wesleyad

csgohan4 said:

if he has such a high salary, stamp duty of that range could be pocket money for him, 
However I would sit down with him to see what the real reason is, stamp duty aside. 2 years may not be long enough for him to commit for example

That stamp duty at the higher rate is going to be £62K
I'm not sure OP realises this as they are talking about getting a loan to pay it, which would be unlikely at that amount.