Stamp Duty Avoidance

stu2500

Hello all, my partner and I are going to be moving home and purchasing a larger house in the next 12-24 months. My partner owns and rents out a flat in her name only, therefore, we would have to pay stamp duty on our next house purchase (much like we did for our present).

I was thinking to get the future mortgage in my name only to try and avoid the 2nd home stamp duty. I wondered if anyone had experience of this or any advice around this? I've looked in to the affordability issues etc and all should be fine. 

p00hsticks

Just to be clear - when you say you are 'moving home', do you mean that you are selling the property you jointly own and currently live in in order to buy another one ?  Because if so, then you will be 'replacing your main residence' and so will not have to pay the additional 3% SDLT even though you will have more than one property.

jen_fpb

I think if you’re not married this is ok but if you’re married you’re counted as one 

Thrugelmir

Is your partner funding the purchase in some manner. Thereby holding a financial interest. 

stu2500

p00hsticks said:

Just to be clear - when you say you are 'moving home', do you mean that you are selling the property you jointly own and currently live in in order to buy another one ?  Because if so, then you will be 'replacing your main residence' and so will not have to pay the additional 3% SDLT even though you will have more than one property.

Apologies, yes, selling our current residential home and purchasing a new one. 

stu2500

Thrugelmir said:

Is your partner funding the purchase in some manner. Thereby holding a financial interest. 

Yes, we save jointly and the equity in our current home is to be used for the deposit.

stu2500

jen_fpb said:

I think if you’re not married this is ok but if you’re married you’re counted as one 

We will be married by then 

user1977

stu2500 said:

jen_fpb said:

I think if you’re not married this is ok but if you’re married you’re counted as one 

We will be married by then 

Doesn't matter - if you're replacing your main residence then the additional rate doesn't come into it anyway.

TBG01

stu2500 said:

jen_fpb said:

I think if you’re not married this is ok but if you’re married you’re counted as one 

We will be married by then 

You'll have to pay higher rate then.

Putting the mortgage in your sole name will make no difference. All it will do is make you the sole owner of the property. 

Snookie12cat

As above. Doesn't matter how many houses you have, if you sell your main residence and buy another at the same time then there is no 3% extra 

p00hsticks

TBG01 said:

stu2500 said:

jen_fpb said:

I think if you’re not married this is ok but if you’re married you’re counted as one 

We will be married by then 

You'll have to pay higher rate then.

No, I don't beleive they will.

The OP has clarified that they are selling their current jointly owned main residence to buy the new one - so they are not increasing the number of properties they own, are replacing their  main residence, and so not liable for the additional rate, married or not.