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Original poster

I am a first time buyer but need to pay stamp duty - can't believe it's so high

91 replies

HibiscusPurple · 17/01/2021 11:34

I am a first time buyer and will be buying a property independently. But, because I am married to someone who bought a property years before we met, I have to pay stamp duty.

Let's assume the stamp duty holiday is not extended past March and that I buy a house for £250,000.

Am I right in thinking stamp duty payable is 12,500? Shock

Do you have to pay this in one go or can you spread it out?

OP posts:
BeaSmithers · 17/01/2021 12:15

There's some really poor and confusing advice on here. The property is your first purchase, and will be your main residence. Your husbands other property does not come into it if he's not going on the deeds to your new purchase.

Either use the gov.uk stamp duty calculator to get a correct answer, or ask your solicitor. Don't rely on answers on here.

Onjnmoeiejducwoapy · 17/01/2021 12:25

It sounds like your husband needs to sort out the situation with the other house he part owns before he buys another?

Balloondog · 17/01/2021 12:27

Sadly @BeaSmithers that's not correct, as DH and I found out first hand. As a married couple you are treated as one entity, it doesn't matter that you personally haven't owned a house before or if you don't put DH on the deeds. Legally, you are one and therefore liable for the '2nd property' stamp duty rate I'm afraid. I would suggest that your DH extracts himself from the previous arrangement, either he other party buys him out or they sell.

Spinner12345 · 17/01/2021 12:31

@BeaSmithers that’s not right unfortunately, please see www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property My solicitor wasn’t 100% sure of the law around this (as a residential solicitor and a reputable one not some sweatshop) so I took tax advice as well. It’s not an easy area to navigate

Treacletoots · 17/01/2021 12:38

Oh dear, and this is where the tax to try and curb BTL would be landlords has massively failed someone who has nothing to do with BTL.

However, the affordability of the other person's mortgage requirement is not your DH's problem any more. If he can't afford the house on his own, he needs to sell. Or try another lender who would be more generous with income multiples.

We were astonished at the difference some lenders max lending limits were, some were twice the lowest.

I'd sort out the other house first, although if you do buy and pay the higher stamp duty rate, you can still claim it back if you sell the other property, within a short amount of time.

Original poster
HibiscusPurple · 17/01/2021 12:41

The other chap doesn't want to sell.

OP posts:
BigRedBoat · 17/01/2021 12:42

It sounds like your dh needs to sort out the situation with the other property. It's a shame the other person can't get a mortgage for the house but that's not really your Dh's problem to solve, the other person will presumably get money from the sale to either buy a cheaper property or rent somewhere?

Original poster
HibiscusPurple · 17/01/2021 12:43

However, the affordability of the other person's mortgage requirement is not your DH's problem any more. If he can't afford the house on his own, he needs to sell. Or try another lender who would be more generous with income multiples.

The other bloke can afford his mortgage payments. He has done so happily for the past 10+ years. It's just when he tries to get DH off the mortgage, the banks say "well we can see you have been paying the mortgage by yourself but our computers say you can't afford it." We have been trying for years to get it done, but no joy. And, he doesn't want to sell.

I do feel massively failed by the law. I'm so fed up.

OP posts:
Pleaseaddcaffine · 17/01/2021 12:52

Your dh can force the sale if needed. Its not a fun process but cheaper than paying 12500 out. Unless the bloke in his house wnats to pay the stamp for you and the amount is ring fenced out of other house when it's sold or he takes dh name off the deeds??

Asparaguspatchkid · 17/01/2021 12:53

Op, you can force a sale of a property you own as 'tenants in common, see here: www.google.com/amp/s/amp.theguardian.com/money/2008/apr/30/property.mortgages

Ideasplease322 · 17/01/2021 12:54

Oh heavens you haven’t been massively failed by the law😂. Get over your self.

Your husband is not a first time buyer, indeed he currently owns half a house.

Your husband is doing a friend a massive favour by staying in the deeds of this house, that favour comes at a cost (and potentially benefit).

Grow up and take some decisions. Also I assume your husband And his friend have sought legal advice Over the house?

Iwonder08 · 17/01/2021 12:55

OP, stamp duty is ridiculously high and stupidly unfair. However there is nothing you can do apart from

  1. just get on with that
  2. get your husband to sort his other property out without any consideration for the other chap
Heyahun · 17/01/2021 12:56

He obviously has to force the sale of the other property if his friend isn’t able to sort buy him out!

Seriously your husband is being an idiot allowing himself to be treated like that - the other lad just happily living there 😂 fucking hell what a ridiculous situation

titchy · 17/01/2021 12:56

@HibiscusPurple

The other chap doesn't want to sell.
Maybe your dh needs to get strict and force a sale.
Changi · 17/01/2021 12:57

It might be cheaper to divorce, buy the house, and remarry afterwards.

LonnyVonnyWilsonFrickett · 17/01/2021 12:58

Your DH needs to force the point legally then. It's a nonsense to still be on the deeds and mortgage of a house he hasn't lived in for 10 years - if this guy defaults then your DH would be liable!

Do you have proof that he's spoken to the bank?

Either way, he needs to get himself a broker and remortgage in his own name only. That might mean extending the term to reduce the repayments and fit the affordability criteria. But your DH needs to make this happen, he can't just be passive about it. This guy has been taking the piss for ten years, time to act!

user184628462 · 17/01/2021 12:59

How has the law failed you

BackwardsGoing · 17/01/2021 13:01

Your DH needs to sort out his financial situation. He part owns a house which he doesn't live in. Is he on the mortgage? He will be liable for mortgage and council tax arrears should the person living there stop paying.

He can force a sale and either use any equity to buy a house with you, or at least support the mortgage application. Then your stamp duty will be as per a PPR.

BackwardsGoing · 17/01/2021 13:02

And you haven't been failed by the law, you've been let down by a flakey husband Smile

daisypond · 17/01/2021 13:03

You haven’t been failed by the law. On the contrary, the law has meant that you now own a property that you haven’t had to buy at all.

fingersdoublecrossed · 17/01/2021 13:05

I've just been in exactly this situation with my partner who jointly owned a house with a friend. Long story short - the house had to be sold so we could move on and do what we wanted to do. Like you, it had been over a decade and I felt we'd been more than understanding. We couldn't afford to do anything while partner's name was attached to another property.
It's caused some resentment but his friend had a number of years to sort it if he wanted to.

flashbac · 17/01/2021 13:09

@Spinner12345
Do you mean unmarried couples are also liable if one half already has a property and the other buys one?

DreamingofItaly · 17/01/2021 13:22

You need to talk to a solicitor/tax adviser about this. DH owns a house that he rents out, has done for pushing 20 years. We are selling our main house now and buying a new one. Secondary stamp duty is not required as it is our primary residence. This purchase you're making will be your DH new primary residence.

He may need to sort out a rental agreement for the other property he owns with his mate but from my experience you shouldn't be paying secondary stamp on this.

DreamingofItaly · 17/01/2021 13:23

And yes, PP are correct, as DH is not a first time buyer, you as a pair are not first time buyers. We had the same when we bought our first home together.