Adding wife to BTL mortgage - advice needed please

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    Adding wife to BTL mortgage - advice needed please

    Hi there,

    I have a property I bought in 2005 lived in and moved out to buy another home. I kept this as a BTL after converting to 2 flats (freehold).

    I have a BTL mortgage on the flats and want to add my wife and take advantage of her tax allowance, she earns £2,000 p.a. I pay 40% tax

    Do I have to pay stamp duty if I transfer 50% of the ownership on the deeds?

    Is there a better way of doing this and will she get accepted on the mortgage as she earns so little?

    Thank you

    Andy


    #2
    Whether she is accepted on the mortgage or not is up to the lender.

    You would be charged SDLT on the value of 50% of the mortgage if she is accepted and you transfer the ownership.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Thank you for the reply.

      What value do I pay SDLT on? the BTL mortgage is £110,000 the value of the property is £200,000.

      Comment


        #4
        Half the BTL mortgage, so it's a sale of £55k, which would fall into the 3% bracket.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Thank you for your help

          Comment


            #6
            If you only reason for putting her on the mortgage is to utilise your wife's tax allowances then you should consider just forming a partnership with your wife (for tax purposes). This way she could be entitled to (& taxed on) some of the profits without the need to put her name on the mortgage. Ideally she should be involved, in some way, in managing the property business.

            Comment


              #7
              Is your wife happy that if you miss payments, SHE will be asked to pay the mortgages.
              If you disappear, is she happy to have to pay EVERYTNING ?

              Comment


                #8
                Originally posted by Sean Hughes CTA View Post
                If you only reason for putting her on the mortgage is to utilise your wife's tax allowances then you should consider just forming a partnership with your wife (for tax purposes). This way she could be entitled to (& taxed on) some of the profits without the need to put her name on the mortgage. Ideally she should be involved, in some way, in managing the property business.
                Hi Sean
                As a new contributor you might need to know that the Forum rules forbid self promotion including telephone numbers , I am sure if anyone wanted to get in touch with you they would initially PM .

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