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Stamp Duty when buying house jointly , one person moving house, one person second home
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DeeSpare
Posts: 33 Forumite
Hi there
If I were to buy a house jointly with a family member…it will be my second home, but they will be moving into it as their main home, what will be the stamp duty situation please?
If I were to buy a house jointly with a family member…it will be my second home, but they will be moving into it as their main home, what will be the stamp duty situation please?
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The house will be in England? You will not live in it as your only or main residence?DeeSpare said:Hi there
If I were to buy a house jointly with a family member…it will be my second home, but they will be moving into it as their main home, what will be the stamp duty situation please?1 -
Yes it will be in england.I wont live in it and it would be my second home, my brother would and it would be his main residence.SDLT_Geek said:
The house will be in England? You will not live in it as your only or main residence?DeeSpare said:Hi there
If I were to buy a house jointly with a family member…it will be my second home, but they will be moving into it as their main home, what will be the stamp duty situation please?
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Then as you already own a home you will need to pay the +3% SDLT surcharge (edit: for completeness as below 3% on the whole price)DeeSpare said:
Yes it will be in england.I wont live in it and it would be my second home, my brother would and it would be his main residence.SDLT_Geek said:
The house will be in England? You will not live in it as your only or main residence?DeeSpare said:Hi there
If I were to buy a house jointly with a family member…it will be my second home, but they will be moving into it as their main home, what will be the stamp duty situation please?
The total SDLT will depend on the purchase price (see link to gov. calculator)
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
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The 3% extra SDLT will apply to the whole price, whatever your share will be in the new property.1
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Thankyou for all of your help. I very much appreciate you bothering.0
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Question ?
Why are you buying a house with your brother if your not going to live there ?0 -
If it’s for financial reasons and you’re buying with a mortgage you can look at
‘joint borrower sole proprietor’ (I think it’s still called that)- I’ve done that before about 3 years ago. You’d have to get legal advice as there are implications and risks but it means he’ll own the house so you won’t have to pay the stamp duty. It’s for situations like this so might be worth looking in to it?3 -
@deespare I'll echo what the poster above has said, a JBSP mortgage is often used in scenarios where a family member who owns their own home is going on a mortgage simply to boost affordability but doesn't want/need to be on the deeds.
There are plenty of mainstream lenders like Barclays, Skipton, Newcastle, Clydesdale, etc. who offer these products so you won't really lose out on rate either.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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The SDLT saving requires that the family member with their own home is to have no underlying share in the property being bought. This is not necessarily the same thing as being "on the deeds".K_S said:@deespare I'll echo what the poster above has said, a JBSP mortgage is often used in scenarios where a family member who owns their own home is going on a mortgage simply to boost affordability but doesn't want/need to be on the deeds.
There are plenty of mainstream lenders like Barclays, Skipton, Newcastle, Clydesdale, etc. who offer these products so you won't really lose out on rate either.
For example, a declaration of trust saying that the family member has a underlying share in the property, would be enough to mean that the extra 3% SDLT is due.1
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