Stamp Duty Reclaiming

Compdonk

I was wondering if you could help with a bit of information.

I purchased my current house in March 2019 for £221K, I was selling the house I already owned outright which sold for £150K, but because the sale of my house wasn't going to go through for a month after we had to complete on the house we were buying, it was classed technically as a second home purchase and liable for higher rate SDLT. As I had to take out a mortgage for the full amount of the second property less the deposit, I qualify for that size of mortgage on my own, so my partner (she owns her own house outright) agreed to put her name on the mortgage and deeds so that we would get accepted for the mortgage as a couple. I was told when I did this, that I had 3 years to sell my property to be able to claim back the higher rate SDLT.

I have waited until the fixed rate mortgage that I took out for 2 years is almost up to start negotiating a new deal and put it back into my soul name. As this is now my only property, I was looking to reclaim the higher rate SDLT. However, someone has mentioned that by simply taking my partners name off the mortgage and deeds, I still wouldn't be able to reclaim the SDLT because my partner owns a house in her own name, and that she would have to sell her house for me to be able to make the claim. Is this correct?

If it is correct it hardly seems fair as we only put her name on the mortgage so that we could get it approved. I have paid the mortgage since and overpaid as much as I was allowed 10% a year using the money I received from the sale of my old house. Basically, my partner owns her house and I own mine which means we have a property each. So, the situation is exactly the same as it was prior to us buying this house other than I'm around £6K in SDLT out of pocket. Any help advise would be appreciated.

Any questions then please ask..

AdrianC

It's not just "her name on the mortgage and deeds". She is a joint owner. You're unmarried?

At the start - you own A (primary residence), your partner owns B (primary residence?).
You jointly buy C (primary residence). You now own A and C, she now owns B and C. You pay +3%.
You have since sold A. But not B.

But since your partner still owns B and C, the property does not qualify for the +3% being refunded.
If B was not her primary residence, then even if she sold B, she still wouldn't be.

[Deleted User]

Compdonk said:

I was wondering if you could help with a bit of information.

I purchased my current house in March 2019 for £221K, I was selling the house I already owned outright which sold for £150K, but because the sale of my house wasn't going to go through for a month after we had to complete on the house we were buying, it was classed technically as a second home purchase and liable for higher rate SDLT. As I had to take out a mortgage for the full amount of the second property less the deposit, I qualify for that size of mortgage on my own, so my partner (she owns her own house outright) agreed to put her name on the mortgage and deeds so that we would get accepted for the mortgage as a couple. I was told when I did this, that I had 3 years to sell my property to be able to claim back the higher rate SDLT.

I have waited until the fixed rate mortgage that I took out for 2 years is almost up to start negotiating a new deal and put it back into my soul name. As this is now my only property, I was looking to reclaim the higher rate SDLT. However, someone has mentioned that by simply taking my partners name off the mortgage and deeds, I still wouldn't be able to reclaim the SDLT because my partner owns a house in her own name, and that she would have to sell her house for me to be able to make the claim. Is this correct?

If it is correct it hardly seems fair as we only put her name on the mortgage so that we could get it approved. I have paid the mortgage since and overpaid as much as I was allowed 10% a year using the money I received from the sale of my old house. Basically, my partner owns her house and I own mine which means we have a property each. So, the situation is exactly the same as it was prior to us buying this house other than I'm around £6K in SDLT out of pocket. Any help advise would be appreciated.

Any questions then please ask..

The house you purchased March 2019 was an additional residential property for both you hence why the higher rate of SDLT for the purchase of additional residential properties was due. When you jointly purchase the property in March 2019 did you have a deed of trust drawn up saying that your partner has zero beneficial ownership in your home? If not and your partner is both a legal and beneficial owner then the purchase was also an additional residential property for her too and still will be even if you sell your old home because she will still own hers. 

SDLT_Geek

I can see another problem for OP here. It applies if it turns out that you were the sole beneficial owner of the property you bought in March 2019, and you sold your previous home very shortly afterwards.  The problem is that you would now be out of time to apply for a refund of the extra 3%.  I think the time limit then was 12 months after the sale of your old home.