To pay or not to pay?

Buzzlightyear21

My daughter is in the mortgage for our current property. I pay the mortgage. We have lived her for two years and the plan was we stay in this home for the next 10 years to allow her to save and eventually get her own place. 

She has done well in her job and managed to secure a healthy deposit and would like to buy something now.
If she buys another property in her name (and stays on the mortgage for this house) and it is her main residence, does she still pay the higher rate stamp duty for an additional property? Or shall I tell her to hold off until our fixed rate ends (3 yrs) and then I can sell the house?

Herzlos

Can you take her off your mortgage so her new place is her only residence?

theartfullodger

Understand she is on mortgage (defined share or anything like that)?? Is she (presumably) also on house deeds??

user1977

Yes, assuming you mean she is also an owner at present then her purchase would be of an additional property so the extra tax is due. She can reclaim that if she gets off the existing title within 3 years.

RogerPensionGuy

I think people can be on the mortgage, but not on the deeds. 

It's a system that allows people like children that can't afford to buy accommodation to get people like parents or family to ensure responsibility fit the mortgage getting paid.

The above helps to prop up housing prices. 

If say child stops paying mortgage and other party can't pay it, hassle begins. 

And on top of all the above, lots of paperwork however it pans out and this paperwork needs paying for. 

Why is child on mortgage of parents home? 

Buzzlightyear21

Thanks to all that responded  🙏 
I can’t take her off the existing mortgage, becausr I need her wage (on paper) to attain the mortgage capability. Although, I am paying it all myself.
So, yes she is on the existing mortgage (no defined share) and deeds.
Financially, in three years I can take her off the mortgage as I will have paid off a sufficient amount to have it in my name only.
So, just that I understand it… If I take her off the title deeds and mortgage she can claim back the higher rate stamp duty she will have paid as long as it’s before 36 months are up?

pinkshoes

Buzzlightyear21 said:

Thanks to all that responded  🙏 
I can’t take her off the existing mortgage, becausr I need her wage (on paper) to attain the mortgage capability. Although, I am paying it all myself.
So, yes she is on the existing mortgage (no defined share) and deeds.
Financially, in three years I can take her off the mortgage as I will have paid off a sufficient amount to have it in my name only.
So, just that I understand it… If I take her off the title deeds and mortgage she can claim back the higher rate stamp duty she will have paid as long as it’s before 36 months are up?

https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Yes, if she is no longer an owner of your property, she can then claim the higher amount back as long as it is within 36 months. 

Being on your deeds means she has missed out on potentially not paying stamp duty at all as she has already owned a property.

RogerPensionGuy

Trying to guess here a bit. 

Sounds like not being on deeds was a better option. 

I wonder the cost of getter her off the deeds?

Is she now not going to be able to benefit from being a FT first time buyer?

Below is a link for information, on quick glance says FTB can get 95% LTV mortgages, I understand 95% has its place, but just another scheme to prop up the typical lower end of the housing market, just like HTB help to buy government schemes to lend up to 20% of buying prices for 5 years, then they plonk on interest and it typically ramps up, but these schemes could be called HTB help the builders make more profits and help government by pushing up prices and forget the long ago multiple factors of 3 X pay or similar for a sensible way to go.

With interest rates back to long-term average and looks like they will stay here for a long long period, maybe we will see another great great greatest PPI scandal in a while. 

Buzzlightyear21

Yes, she has lost out on the first time buyer status. However, I will reimburse her for that if she decides to go ahead. That’s good news to know she can claim the higher rate back in 3 years. 

Thanks for responding 🙏