Second home stamp duty query - fiance joining my mortgage on a new home

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    Second home stamp duty query - fiance joining my mortgage on a new home

    Hi all

    Just trying to work out whether we'd need to pay any additional 'second home' stamp duty.

    My fiance and I have been living together for 3 years; the house/mortgage is in my name only.

    We plan to buy a new home, and will have a shared mortgage.

    I own 2 BTL properties (with mortgages).

    She owns one property (outright) which she also rents out.

    If we buy a house together, it's been suggested that she may have to pay the 'second home' stamp duty, as she already owns a house.

    My argument would be that the house she purchased (just less than a year ago) was purchased specifically for renting out; she's never lived in it; it's not 'her home'. She has lived with me for 3 years. She is 'replacing' her home.

    Would HMRC see it this way though?

    If they did...

    -would her mortgaging her property onto a BTL property change anything?
    -what if we were married?
    -what if we re-mortgaged our current property first so that she's named on it?
    -I assume we could avoid by it simply being me named on the property? I'm just 'replacing' my main home... in my eyes I see she's simply doing the same though too...

    Thanks

    Ross

    #2
    These are the kind of questions one gets when lawmakers of low IQ make laws while floating in the bathtub with the bubbles bubbling.

    She is not replacing any home that she owns, and you are not yet married. I am not sure the lawmakers took engagement rings into account. You could get married, put her on your house as co-owner, and then sell it 3 days later. What a joke.

    A couple in your position but renting their home, while both owning the same rental properties get slammed, so the whole thing is topsy turvy, and discriminates against the (relatively) worse off who pay more tax.

    Comment


      #3
      If you or fiance already have another property registered under your name on the day of registration of new property , then you have to pay the extra 3% sdlt.

      If you live the property as owner occupier for a period to establish your residence in the property , you have up to 3 years to claim back the 3% ( don't take my word , check yourself ).

      Comment

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