3% SDLT surcharge - Married

pauldeg

I have a mortgage offer from my bank and the house is only a couple of weeks from completion.  I am married but do not live with my husband as he works abroad most of the time and I dont want to. He owns a UK property and I am buying my own property.  My lawyer has said I need to pay a 3% surcharge on the SDLT as my husband owns a house already.  If this is the case I will need to ask him to gift me this, £17,500, which he is happy to do but he is currently living abroad, outside of Europe as his job is based abroad so the gift would be coming from outside of the UK/Europe.  He has a valid job with a well known company.  I have spoken to HMRC and they said I dont need to pay the 3% based on being separated. 

My questions are .

1) Do I pay the SDLT and get the gift, which might be tricky as its coming from outside of the UK/Europe

2) Go with the separation option, which means I can avoid the 3%.  My only worry about this is that the bank might object as they know I am married and living apart but i am not sure they know we are technically separated.  I contacted my broker and he said it would be ok, but I am concerned they might see it as a risk.  We have an official separation of goods agreement, Pre-marriage. 

Also, will my lawyer let my bank know?  I feel like they are working for the bank at times, not me.

Just to be clear. I dont care about the additional £17,500. My lawyer is a pain (as they should be) so I just want to make sure I use the right option to get the mortgage/house. 

Thanks in advance, 

Paula

steampowered

pauldeg said:

Also, will my lawyer let my bank know?  I feel like they are working for the bank at times, not me.

Does the bank have its own separate law firm involved?

If not, then yes - your conveyancer is also representing your mortgage lender. The lender is just as much their client as you are. Your conveyancer is legally required to disclose matters to the lender as their client. 

MWT

pauldeg said:

2) Go with the separation option, which means I can avoid the 3%.  My only worry about this is that the bank might object as they know I am married and living apart but i am not sure they know we are technically separated.  I contacted my broker and he said it would be ok, but I am concerned they might see it as a risk.  We have an official separation of goods agreement, Pre-marriage.

Are you actually legally separated and have filed a separation petition with the Court, or are you just describing yourself as separated because you are not currently living together?

Even without the Court filing it would still work for you if you have agreed to permanently separate, but that is something you should disclose to the bank as well, you can't present yourself as married to the lender but separated to HMRC...

If you are just living apart until such time as he is no longer working abroad then you are not separated permanently and the 3% SDLT is payable