I own a home but my partner doesn't. If we get joint mortgage is their 50% stamp duty?

kevinqq

If I were to buy a 2nd home I'd get hit with stamp duty, but what if it's a joint mortgage with someone who is a first time buyer (and thus no stamp duty)

thanks

MeteredOut

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

kevinqq

MeteredOut said:

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

Deeds are me only on my current home (no mortgage).   So partner should/could get the mortgage herself and I could be her live in tenant?  

sheramber

kevinqq said:

MeteredOut said:

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

Deeds are me only on my current home (no mortgage).   So partner should/could get the mortgage herself and I could be her live in tenant?  

Can she get  the necessary mortgage on her wage alone?

kevinqq

sheramber said:

kevinqq said:

MeteredOut said:

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

Deeds are me only on my current home (no mortgage).   So partner should/could get the mortgage herself and I could be her live in tenant?  

Can she get  the necessary mortgage on her wage alone?

Probably not but of course I would be renting out my old house for about £1800p/m to give her income.  It is a bit shaky I suppose.      

So does the full stamp duty kick in if it's a joint mortgage?  No discount??

user1977

No, there's no discount, unless she genuinely buys in her sole name (i.e. no beneficial ownership for you). I doubt calling yourself a "tenant" is going to work for any purposes.

p00hsticks

kevinqq said:

sheramber said:

kevinqq said:

MeteredOut said:

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

Deeds are me only on my current home (no mortgage).   So partner should/could get the mortgage herself and I could be her live in tenant?  

Can she get  the necessary mortgage on her wage alone?

Probably not but of course I would be renting out my old house for about £1800p/m to give her income.  It is a bit shaky I suppose.      

So does the full stamp duty kick in if it's a joint mortgage?  No discount??

It's not the mortgage, it's the ownership of the property. 
But for a joint mortgage, the mortgage company will expect to see both of you on the deeds.
and as you'll be going from owning one property to two, the additional SDLT will apply. 

p00hsticks

kevinqq said:

MeteredOut said:

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

Deeds are me only on my current home (no mortgage).   So partner should/could get the mortgage herself and I could be her live in tenant?  

You'd be a lodger, not a tenant. 

kevinqq

p00hsticks said:

kevinqq said:

sheramber said:

kevinqq said:

MeteredOut said:

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

Deeds are me only on my current home (no mortgage).   So partner should/could get the mortgage herself and I could be her live in tenant?  

Can she get  the necessary mortgage on her wage alone?

Probably not but of course I would be renting out my old house for about £1800p/m to give her income.  It is a bit shaky I suppose.      

So does the full stamp duty kick in if it's a joint mortgage?  No discount??

It's not the mortgage, it's the ownership of the property. 
But for a joint mortgage, the mortgage company will expect to see both of you on the deeds.
and as you'll be going from owning one property to two, the additional SDLT will apply. 

and that's because one of us already has a house.   Thanks

kingstreet

p00hsticks said:

kevinqq said:

sheramber said:

kevinqq said:

MeteredOut said:

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

Deeds are me only on my current home (no mortgage).   So partner should/could get the mortgage herself and I could be her live in tenant?  

Can she get  the necessary mortgage on her wage alone?

Probably not but of course I would be renting out my old house for about £1800p/m to give her income.  It is a bit shaky I suppose.      

So does the full stamp duty kick in if it's a joint mortgage?  No discount??

It's not the mortgage, it's the ownership of the property. 
But for a joint mortgage, the mortgage company will expect to see both of you on the deeds.
and as you'll be going from owning one property to two, the additional SDLT will apply. 

That's not always the case. A 'joint borrower, sole proprietor' approach may be possible.

kevinqq

kingstreet said:

p00hsticks said:

kevinqq said:

sheramber said:

kevinqq said:

MeteredOut said:

You only mention mortgage, not who will be on the deeds. Assuming you'll also jointly own the house, the purchase will attract the higher rate (+3%) of SDLT. The purchase will also not qualify for first time buyers relief.

The property would have to be in the first time buyers name only, and that may introduce a challenge in then getting a joint mortgage.

Deeds are me only on my current home (no mortgage).   So partner should/could get the mortgage herself and I could be her live in tenant?  

Can she get  the necessary mortgage on her wage alone?

Probably not but of course I would be renting out my old house for about £1800p/m to give her income.  It is a bit shaky I suppose.      

So does the full stamp duty kick in if it's a joint mortgage?  No discount??

It's not the mortgage, it's the ownership of the property. 
But for a joint mortgage, the mortgage company will expect to see both of you on the deeds.
and as you'll be going from owning one property to two, the additional SDLT will apply. 

That's not always the case. A 'joint borrower, sole proprietor' approach may be possible.

And that would negate any stamp duty burden I am carrying??