Money Moral Dilemma: Should I pay half the Stamp Duty on the house I'm buying with my boyfriend?

fpm

Dont buy a house together, build a proper relationship.

Marcon

SWGranny said:

It's a difficult one isn't it?  It does seem unfair that because of your boyfriend's property situation you have to pay stamp duty, whereas solely, as a first time buyer, you would not.  My inclination would be that he should pay the stamp duty since he is the one who already owns a property, but I think it is a conversation that the two of you need to have to both agree what you feel is fair.  Your boy friend would have benefitted from no stamp duty on his original property, so to to me it seems only fair that you should have the same benefit for your first property.

No, not difficult at all. Sadly, the fact the question is being asked at all tells you all you need to know about this relationship.

Rocketdogroya

Assuming you add the duty to your mortgage
Is £5000 gonna be that noticeable on the monthly payment and are you going to work out the 'difference' in interest that £5000 causes each renewal? 

If your not adding it
Then it is just £5000 less deposit which again affects the interest rate. 

If he pays it but you have it the above still counts as its an extra bonus payment

MSE mortgage calculator says that the interest on that at 5% over 25y will cost roughly £3000 but are you then going to add or subtract that from your part of the payment too?

However, I think is if you are committed enough to tie yourself financially to this person who pays what percentage is irrelevant. If either of you have financial difficulties or a big purchase down the road surely you will help each other out as 'partners'? 

Iwishiwasmoneysavvy

I think if the only reason you can afford to buy a house is because you are buying together then yes, you need to pay half the stamp duty

Privatekid

You could ask your partner to sell his other property? That way you don’t pay the extra. However, I’m sure the other property is what gives you both some security, for the future. Like a marriage, you’re going into this for life, joint accounts, joint spending, joint incomes etc. If you’re both putting in equal amounts and the living costs will be exactly equal, as if living with a friend temporarily, maybe you have a point.

Conrad_Smith

If you are even asking the question it is not a good idea to own the house jointly.

Mark_d

If I was the boyfriend, I would offer to cover the stamp duty cost because I caused it.

My advice to you...if it's a long term relationship, then split the costs evenly.  If you try splitting costs depending on who ever incurred the cost, or based on the proportion you can attribute to someone, then things will get ugly...and you might as well end the relationship now.

badgerdeluxe

This is MSE - the moral thing to do is pay the least tax possible. To do this:

1. buy the house in your name with no stamp duty.
2. get married
3. transfer 50% of house and mortgage to partner - so you are half and half ownership
4. get divorced

At the end of that you are still an unmarried couple, but you have avoided the £10k stamp duty. While incurring some small costs for a wedding (~£50) an amicable divorce with no complexity (~£500), the transfer of ownership (~£500 solicitors + ~£1000 mortgage).

If the above is not possible because you cannot get a big enough mortgage without your partner then pay half. Otherwise you will have paid less than half the costs and therefore be entitled to less than half the ownership rights.

eao

Seems like your boyfriend has not brought up the topic; perhaps an oversight on his part.  Mention it to him, you could explain that he has already benefitted from this concession and that it is now your turn, if he agrees, then good.
If he disagrees then also good...move on.

Rozy1

No, you should not have to pay half the the extra Stamp duty cost because your partner has another property, they should either sell the other property or pay the extra cost themselves. Unless you are entitled to a share of the other property.