Moving In With Partner

WYSPECIAL

Not sure if this is the right board for this so apologies if not.

After a long time together but living in separate houses, with the plan to live together all the time at some stage in the future my partner and I are now looking at actually doing it.

Due to ages of children first stage will probably be that I will move into her house and then we will sell that and buy somewhere smaller in a couple of years.

She still has a mortgage on her property. If I were to buy a half share off her so that we became joint owners and tenants in common what costs would be involved stamp duty wise etc? What future costs would there be to be aware of if I sell my property at some stage in the future given that it will no longer be my primary residence?

Would it be possible, and cheaper, instead to leave her house in her sole name and put a legal charge in my name on it?

Slithery

Why bother going on the deeds at all?

Just sell your property when you move in and keep the cash in savings until she sells and you both buy together. That way there will be no additional SDLT or CGT due.

WYSPECIAL

Slithery said:

Why bother going on the deeds at all?

Just sell your property when you move in and keep the cash in savings until she sells and you both buy together. That way there will be no additional SDLT or CGT due.

I've got adult children that will be living there for the next couple of years so don't want to sell yet plus holding the proceeds of cash would give a poor return and may not match property rises.

Partner currently has a mortgage on the property. Clearing that would allow her to maximise pension contributions for the next few years.

user1977

WYSPECIAL said:

Would it be possible, and cheaper, instead to leave her house in her sole name and put a legal charge in my name on it?

What would the charge be securing?

SavingPennies_2

What do she think? Cos if I was her I'd be thinking I'd be going from owning my own property to owing half/part of a property, whereas you would be going up to having one and a half properties, that puts you in a stronger position. If you intend to buy together in a few years anyway, why not move in pay towards food/ bills but nothing in terms of mortgage. Then you both still own a property, then in a few years you can both sell and jointly own somewhere together.

WYSPECIAL

user1977 said:

WYSPECIAL said:

Would it be possible, and cheaper, instead to leave her house in her sole name and put a legal charge in my name on it?

What would the charge be securing?

My money that would be going into her house if it remained in her sole name. I'm sure we won't split up but sensible to have some protection in place for both of us.

WYSPECIAL

SavingPennies_2 said:

What do she think? Cos if I was her I'd be thinking I'd be going from owning my own property to owing half/part of a property, whereas you would be going up to having one and a half properties, that puts you in a stronger position. If you intend to buy together in a few years anyway, why not move in pay towards food/ bills but nothing in terms of mortgage. Then you both still own a property, then in a few years you can both sell and jointly own somewhere together.

I see your point but our thinking is she currently owns half a property (approximately) and the other half is owned by the mortgage lender.

As you say I'd be going up to having one and a half properties but my savings would be depleted by the same amount so I won't have gained anything.

If anything it strengthens her position as she would still have the same amount of equity in the house but no longer have a mortgage to pay which would mean she could increase her pension contributions and benefit from tax relief rather than be paying interest.

p00hsticks

WYSPECIAL said:

SavingPennies_2 said:

What do she think? Cos if I was her I'd be thinking I'd be going from owning my own property to owing half/part of a property, whereas you would be going up to having one and a half properties, that puts you in a stronger position. If you intend to buy together in a few years anyway, why not move in pay towards food/ bills but nothing in terms of mortgage. Then you both still own a property, then in a few years you can both sell and jointly own somewhere together.

I see your point but our thinking is she currently owns half a property (approximately) and the other half is owned by the mortgage lender.

No, she owns a whole property and owes a mortgage lender a sum of money.

If you wish to replicate this arrangement , then lend her enough money to pay off the mortage and get a charge put on the property so that you get the money repaid when the property is sold.

The you still each own a property, the mortgage is paid off, there are no SDLT or CGT implications for you and your loan is protected.

user1977

WYSPECIAL said:

user1977 said:

WYSPECIAL said:

Would it be possible, and cheaper, instead to leave her house in her sole name and put a legal charge in my name on it?

What would the charge be securing?

My money that would be going into her house if it remained in her sole name. I'm sure we won't split up but sensible to have some protection in place for both of us.

But in what way would it be "going into her house" if you're not buying a share of it from her?

WYSPECIAL

user1977 said:

WYSPECIAL said:

user1977 said:

WYSPECIAL said:

Would it be possible, and cheaper, instead to leave her house in her sole name and put a legal charge in my name on it?

What would the charge be securing?

My money that would be going into her house if it remained in her sole name. I'm sure we won't split up but sensible to have some protection in place for both of us.

But in what way would it be "going into her house" if you're not buying a share of it from her?

Technically I suppose I would be a lender. She would owe me the money not the mortgage lender as it would have been paid off.

WYSPECIAL

p00hsticks said:

WYSPECIAL said:

SavingPennies_2 said:

What do she think? Cos if I was her I'd be thinking I'd be going from owning my own property to owing half/part of a property, whereas you would be going up to having one and a half properties, that puts you in a stronger position. If you intend to buy together in a few years anyway, why not move in pay towards food/ bills but nothing in terms of mortgage. Then you both still own a property, then in a few years you can both sell and jointly own somewhere together.

I see your point but our thinking is she currently owns half a property (approximately) and the other half is owned by the mortgage lender.

No, she owns a whole property and owes a mortgage lender a sum of money.

If you wish to replicate this arrangement , then lend her enough money to pay off the mortage and get a charge put on the property so that you get the money repaid when the property is sold.

The you still each own a property, the mortgage is paid off, there are no SDLT or CGT implications for you and your loan is protected.

That’s the idea. I’ll either buy half and we’ll be joint owners or I’ll lend her the money so she is mortgage free. 

My query is around what the cost implications in term should of stamp duty, cut etc are with each. 

We’re both happy with either solution but want it to be as cost  efficient as possible.