Purchasing House - First Time buyer

ee04rrv · 11 March 2017 at 7:50PM

Hi,

I'm recently married and would like to understand the benefits of buying a house solely in my name and not a joint name - myself and my wife. Scenario - I potentially will be buying a my first house from a family member - transaction under value. Idea is to put it in my name although we will both live in it. In the coming year, we would potentially like to purchase a second property, solely in her name - although i will also contribute to the mortgage.

Questions - are the any benefits to doing this, from a tax perspective? To owning properties in the future? Will my wife be able to buy the second property in her name using the 5% help to buy scheme (if it still exists) as it will technically be her first property? Anything else you can think of that I have not considered.

Many thanks

G_M · 11 March 2017 at 8:17PM

Good grief. What was the point of getting married?

I thought it was all about commitment and sharing. Of everything.

Buy hey, maybe it's just about 12 month's tax avoidance.

ACG · 11 March 2017 at 8:21PM

You buy a house you will both be living in.
Your wife buys a house in 6-12 months time...What is the plan with that? And what do you plan on doin with the first place you buy?

ee04rrv · 11 March 2017 at 8:39PM

G_M wrote: »

Good grief. What was the point of getting married?

I thought it was all about commitment and sharing. Of everything.

Buy hey, maybe it's just about 12 month's tax avoidance.

Slightly tricky as buying it back for my father who first owned the house but due to financial difficulty had to enlist a family member to buy it in their name, with the agreement that they would transfer it over, but i'm now having to buy it for a much higher price than originally agreed! We'll be just using it as a place to stay for a few years with the intention of moving on and then providing he keys back to my father - hence not adding my wife's name to it.

ee04rrv · 11 March 2017 at 8:41PM

ACG wrote: »

You buy a house you will both be living in.
Your wife buys a house in 6-12 months time...What is the plan with that? And what do you plan on doin with the first place you buy?

her first house - maybe get a buy to let in order to rent it for a few years. First place, give it to my father who used to own it before some financial drama he got into.

robatwork · 11 March 2017 at 8:42PM

Great idea - for you.
Bad idea - for your wife.

I wish you a long and happy marriage. But what if...... you die.... what if.....you run off with the au pair..... what if.... your father plays silly !!!!!!s and makes things difficult....?

ACG · 11 March 2017 at 8:55PM

I thought you may say that.

You can not buy a BTL property with a 5% deposit, the minimum is 15%, but realistically you will probably need 20-25%. You also can not use HTB to purchase a BTL. Dont try to lie and apply (I am not saying you will), if your wife gets found out she will end up on a naughty list which will mean she has problems getting a mortgage for many years to come.

Hoploz · 11 March 2017 at 9:04PM

Once you're married it gets difficult to try and do things in separate names.
You can't use htb for a btl.
Appreciate you seem to be running in circles round a hapless dad but you might well find yourself the poorer for it.

ee04rrv · 12 March 2017 at 12:09AM

@Hoploz.. father not hapless, just certain circumstances where relatives have taken advantage of his good nature. Guess the old saying is true.. never mix family and business!

Cheers for all the advice.. a lot to consider. Seems there are many approaches to take, will take my time and consider my steps. Guess my real question is are there any advantages in doing things separately.. so far seems like there are not!

hazyjo · 12 March 2017 at 1:33AM

Additional 3% stamp duty too for owning two properties. Married couples count as one.

Jx

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Purchasing House - First Time buyer

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