Stamp duty discount / Buying a house in wife's name only

paulofalus

My wife and I have just had an offer accepted on a house. I was assuming we'd buy in joint names, but my wife is a first time buyer so I believe if we buy in her name only, we'd get a significant discount on stamp duty. But then I guess the mortgage would need to be in her name only as well. This might be feasible, but is there any reason why this would be a crazy idea? We already have a mirror will. Are there any other tax implications? (My wife is pregnant  - will that go against her in the mortgage application?)

Presumably we could always get me added to the house deed at a later date. I would imagine this would be a straightforward process. Does anyone know what it would cost? And would there be any tax implication at that point? On the other hand, why bother adding me at all? 

Appreciate any thoughts, especially if you're a solicitor! 

JGB1955

As you are a married couple you are considered to be one 'unit', so your wife has now lost her FTB status.

See How first time buyers can benefit from the stamp duty holiday extension | Whitegates

Who qualifies as a first-time buyer?

A first-time buyer is someone who has never purchased a property before.

As well as main residences, first-time buyers must also have never bought an investment property or inherited one.

If you’re buying a property with someone else, both of you must be classed as first-time buyers in order to qualify for any stamp duty relief.

TheJP

Its a crazy idea to the fact it cant happen. SDLT will be due whether your name is on the deeds or not. Being married means she is connected to you and as such lost the FTB benefit.

SDLT_Geek

paulofalus said:

My wife and I have just had an offer accepted on a house. I was assuming we'd buy in joint names, but my wife is a first time buyer so I believe if we buy in her name only, we'd get a significant discount on stamp duty. But then I guess the mortgage would need to be in her name only as well. This might be feasible, but is there any reason why this would be a crazy idea? We already have a mirror will. Are there any other tax implications? (My wife is pregnant  - will that go against her in the mortgage application?)

Presumably we could always get me added to the house deed at a later date. I would imagine this would be a straightforward process. Does anyone know what it would cost? And would there be any tax implication at that point? On the other hand, why bother adding me at all? 

Appreciate any thoughts, especially if you're a solicitor! 

Spouses are not treated as “one unit” for the purposes of stamp duty land tax first time buyers’ relief.

But do you presently have an interest in another property such that the 3% surcharge would apply if you bought the new property?  If so, the 3% surcharge would apply to a purchase by your wife alone.  That would trump her first time buyer status.

p00hsticks

Andthen07 said:

paulofalus said:

My wife and I have just had an offer accepted on a house. I was assuming we'd buy in joint names, but my wife is a first time buyer so I believe if we buy in her name only, we'd get a significant discount on stamp duty. But then I guess the mortgage would need to be in her name only as well. This might be feasible, but is there any reason why this would be a crazy idea? We already have a mirror will. Are there any other tax implications? (My wife is pregnant  - will that go against her in the mortgage application?)

Presumably we could always get me added to the house deed at a later date. I would imagine this would be a straightforward process. Does anyone know what it would cost? And would there be any tax implication at that point? On the other hand, why bother adding me at all? 

Appreciate any thoughts, especially if you're a solicitor! 

Why don't people want to pay what they legally have to ?

Who will pay if everyone behaved like a tory MP?

I acknowledge the sentiment, but this is supposed to be a money-saving forum....

canaldumidi

How many properties do you currently own yourself? Do you have plans to sell any/all of them? Are any of them your main residence?