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

MeteredOut

kevinqq said:

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??

Your probably at the point now where you want to get professional advice. Have you researched joint borrower, sole proprietor mortgages, and the risks involved?

You would have no legal ownership over the second property, but would be jointly liable to pay for it. eg, if the other person was made bankrupt, they could lose the house and you'd still be liable for the mortgage payments.

kevinqq

MeteredOut said:

kevinqq said:

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??

Your probably at the point now where you want to get professional advice. Have you researched joint borrower, sole proprietor mortgages, and the risks involved?

You would have no legal ownership over the second property, but would be jointly liable to pay for it. eg, if the other person was made bankrupt, they could lose the house and you'd still be liable for the mortgage payments.

Thanks.  Maybe not worth it to avoid some poxy stamp duty. 

Humbug1929

Hi, when my husband left my brother came on the mortgage with me. He has his own house with mortgage so had to pay stamp duty to come onto mine aswel. But through the solicitor we had a deed of trust written up with me owning 75% of the house and him 25% (this was on the basis on how much i would get offered on a singular mortgage) meaning that he only had to pay stamp duty on the percentage of house that he would own - so the 25%. It made the stamp duty lower than if he owned it 50/50 with me