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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

paying 2nd home stamp duty

28 replies

TidyHazelExpert · 16/11/2024 10:10

Would like to get your thoughts if this would be possible.

I am buying a house however we will have to pay the 2nd stamp duty charge because I am also on the deeds for my parents' home.

When my parents were looking to move (approx 15 years ago) my father was made redundant so they couldn't qualify for a mortgage. I was added to the mortgage by broker.

My father found another job and they've paid of the mortgage.

The plan was to remove myself from the deeds so I wouldn't incur the 2nd home stamp duty charge. However, my dad thinks I should remain on the deeds as this might mean we don't lose the house to care home fees if either my parents needed care. They are both in their early 70s, and my mum has some health issues.

Has anyone done anything similar or would this be possible?

OP posts:
Original poster
TidyHazelExpert · 16/11/2024 11:50

kitchenhelprequired · 16/11/2024 11:45

A long time ago but yes DGP gifted half the property to DM to avoid the possibility of it all going in care costs (there's a much bigger background to why but they had all made sacrifices to be able to own a home so feelings were the buggers weren't going to take it all having not been given help when it was needed).

Is there anyone else who will inherit if care costs don't take whatever proportion of the home you don't own? If it's just you/your children who stand to benefit in the long run I would just accept there's a price to pay now but if someone else is going to get an equal share of inheritance without the additional costs now I would probably try and look at what options there are to reduce the added expense now which they wouldn't have.

Remember this isn't necessarily a one time cost, if you need or want to sell/buy in the future you'll have the same issue if the additional property charge is still in place.

Its myself and my brother, but he isn't on the deeds, has he was too young.

Thatbis what concerns me: we will repeatedly have to pay the additional stamp duty when we move - so if we pay it now, we'll pay it again if we move and again. This makes me thing it might be best to get my name removed.

Thanks

OP posts:
Chestnutworld · 16/11/2024 11:52

kitchenhelprequired · 16/11/2024 11:45

A long time ago but yes DGP gifted half the property to DM to avoid the possibility of it all going in care costs (there's a much bigger background to why but they had all made sacrifices to be able to own a home so feelings were the buggers weren't going to take it all having not been given help when it was needed).

Is there anyone else who will inherit if care costs don't take whatever proportion of the home you don't own? If it's just you/your children who stand to benefit in the long run I would just accept there's a price to pay now but if someone else is going to get an equal share of inheritance without the additional costs now I would probably try and look at what options there are to reduce the added expense now which they wouldn't have.

Remember this isn't necessarily a one time cost, if you need or want to sell/buy in the future you'll have the same issue if the additional property charge is still in place.

See this is where I think she needs advice because my ILs own about 4 rental properties as well as their own so I think she will need to pay the extra stamp when she’s buys her first main residence but then she can prove it’s her main residence so she won’t need to pay extra stamp when she comes to move! It’s only on ‘second homes, rentals’ I think you pay the extra stamp on. I don’t believe everyone that owns more than 1 property has to pay extra stamp on their main home each time they move! But I’m not an expert! My ILs didn’t when they bout their £2m new primary residence and this second stamp issue had come into play the I think as it was 9 years ago.

UggyPow · 16/11/2024 11:53

Are you tenants in common or joint tenants - this may be a factor.
But simply put the council cannot consider an asset that is not solely owned by the people concerned, so your parents are correct, the council would not be able to force a sale for fees. It also wouldn't be considered as a deprivation of assets depending on the timeframes.
You really need to get someone professional to look at it though as your portion of your parents house would be subject to CGT as it isn't your primary residence. Obviously the higher stamp duty would be due as even though it will be your primary residence you own another property & you didn't pay higher stamp duty on that.
You need someone to work through the figures properly to work through the route with the best legal outcome financially

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