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    • Pc88
    • By Pc88 9th Jul 18, 11:42 PM
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    Pc88
    Joint mortgage and stamp duty - is my understanding correct?
    • #1
    • 9th Jul 18, 11:42 PM
    Joint mortgage and stamp duty - is my understanding correct? 9th Jul 18 at 11:42 PM
    Was hoping someone could help clear up some confusion. So originally, my dad and I had a flat with a joint mortgage. Now, I'm interested in buying a place for myself but wanted to know how having my name on the flats mortgage affects things.

    I'm assuming that I'm no longer classified as a first time buyer but would it also mean I'd get charged the additional stamp duty if I were to buy a property? I've looked into removing myself from the mortgage but was told if I do this, a remortgage will automatically take effect and given my dad is now retired, he wouldn't qualify.

    So I think if I want to buy a property for myself and not pay the additional stamp duty, I feel like my only option would be to sell the flat. Does that sound about right?

    Not trying to do anything dodgy here, just want to make sure that I'm understanding things correctly.

    Thanks!
    Last edited by Pc88; 09-07-2018 at 11:46 PM.
Page 1
    • csgohan4
    • By csgohan4 10th Jul 18, 6:52 AM
    • 5,190 Posts
    • 3,308 Thanks
    csgohan4
    • #2
    • 10th Jul 18, 6:52 AM
    • #2
    • 10th Jul 18, 6:52 AM
    Another thread where money and family shouldn't mix, you have now disadvantaged yourself and have to pay more stamp duty will cost you more


    If your dad can't buy your share, then you can't remove your name
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • Pixie5740
    • By Pixie5740 10th Jul 18, 7:31 AM
    • 13,294 Posts
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    Pixie5740
    • #3
    • 10th Jul 18, 7:31 AM
    • #3
    • 10th Jul 18, 7:31 AM
    Are you a beneficial owner of the property jointly owned with your father or just a legal owner? Who resides in the property jointly owned with your father?
    • amnblog
    • By amnblog 10th Jul 18, 7:36 AM
    • 10,838 Posts
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    amnblog
    • #4
    • 10th Jul 18, 7:36 AM
    • #4
    • 10th Jul 18, 7:36 AM
    If, at the end of the day of purchase, you own, or part own, two properties you are liable for the extra 3% SDLT.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Pixie5740
    • By Pixie5740 10th Jul 18, 7:37 AM
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    Pixie5740
    • #5
    • 10th Jul 18, 7:37 AM
    • #5
    • 10th Jul 18, 7:37 AM
    If, at the end of the day of purchase, you own, or part own, two properties you are liable for the extra 3% SDLT.
    Originally posted by amnblog
    Not necessarily. It depends on how the property is owned with the father.
    • amnblog
    • By amnblog 10th Jul 18, 7:39 AM
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    amnblog
    • #6
    • 10th Jul 18, 7:39 AM
    • #6
    • 10th Jul 18, 7:39 AM
    If, at the end of the day of purchase, you own, or part own, two properties you are liable for the extra 3% SDLT.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Pixie5740
    • By Pixie5740 10th Jul 18, 7:43 AM
    • 13,294 Posts
    • 19,147 Thanks
    Pixie5740
    • #7
    • 10th Jul 18, 7:43 AM
    • #7
    • 10th Jul 18, 7:43 AM
    If, at the end of the day of purchase, you own, or part own, two properties you are liable for the extra 3% SDLT.
    Originally posted by amnblog
    It doesn't matter how many times you say it that doesn't make it true. The higher rate of SDLT is based on beneficial ownership not legal ownership. All we know from the OP is that (s)he is a legal owner. The OP could be a beneficial owner as well but there is not enough information to say either way.
    • Pixie5740
    • By Pixie5740 10th Jul 18, 8:02 AM
    • 13,294 Posts
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    Pixie5740
    • #8
    • 10th Jul 18, 8:02 AM
    • #8
    • 10th Jul 18, 8:02 AM
    OP, you might find this thread useful: 2nd Property? Stamp Duty
    • Pc88
    • By Pc88 22nd Jul 18, 8:17 PM
    • 6 Posts
    • 0 Thanks
    Pc88
    • #9
    • 22nd Jul 18, 8:17 PM
    • #9
    • 22nd Jul 18, 8:17 PM
    Apologies for the late reply, been a manic week.

    FYI, I'm the legal owner (not beneficiary AFAIK) and the property is currently tenanted.
    • getmore4less
    • By getmore4less 22nd Jul 18, 8:32 PM
    • 33,479 Posts
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    getmore4less
    Apologies for the late reply, been a manic week.

    FYI, I'm the legal owner (not beneficiary AFAIK) and the property is currently tenanted.
    Originally posted by Pc88
    who gets and pays the tax on the rent

    did you put any money in or pay any of the mortgage.
    • sparkey1
    • By sparkey1 22nd Jul 18, 9:13 PM
    • 439 Posts
    • 193 Thanks
    sparkey1
    If, at the end of the day of purchase, you own, or part own, two properties you are liable for the extra 3% SDLT.
    Originally posted by amnblog
    Thats not correct. Owning a property does not automatically mean you have to pay the 3% additional stamp duty. Its all related to your main residence. For example, a landlord owning 10 properties, decides to buy another place to live in. They sell their house and move into a new one. Because their original house ceases to be their main residence, they dont have to pay the additional 3 per cent stamp duty. They still own the other ten properties. Using the same scenario, this time they keep their existing property and move into a new property. This time they are liable to pay the 3% additional.
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