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Can someone else pay stamp duty?

3 replies

Jarstastic · 04/08/2022 14:34

Is it possible to have someone else pay your stamp duty without anyone e.g. lender having an issue with it? e.g. perhaps someone has experience of paying for their adult child's stamp duty.

The context of this is DH and I are having a challenge buying our next house together (I started a thread on this www.mumsnet.com/talk/legal_money_matters/4599746-mortgages-for-limited-company-director-which-dont-require-too-much-paperwork?reply=118970156)

I think we may be ok but am investigating another option. This is buying a less-expensive house in DH's name alone just on DH"s salary and keeping certain funds originating from me out of it. It's doable but may end up being a scrape.
I'm wondering if I can pay the stamp duty on his behalf?

Do lenders care where/whom funds to pay stamp duty come from? (the money is all above board, the solicitor has completed AML checks on all our funds)
I assume it should be ok as people could put it on credit cards before the change in 2018 when the EU banned charging fees on credit cards so HMRC stopped accepting any payments. Or would they treat this like a gifted deposit.

OP posts:
superram · 04/08/2022 14:40

My parents paid ours, but they just transferred me the money. The lenders didn’t know.

LadyLapsang · 04/08/2022 15:08

People can gift money for a house purchase and make a written declaration that it is a gift without reservation. We did this for DC. I can’t see this working in your situation as you are married and have children. You will be therefore be entitled to a share of the house whether or not you are on the mortgage. Also, it would be entirely reasonable for them to loan you less if you are adding to family costs, e.g. food, utilities, extra council tax, rather than contributing.

Jarstastic · 04/08/2022 16:40

@LadyLapsang We've been advised that in the event we don't make it under our current set up, there are lenders (including high street ones) who will lend the relevant sum to DH alone, with me gifting several hundred thousand pounds to him. Although it seems with the right legals in place, it would more along the lines of accepting lender has first charge in event of default, I'd still have rights in a divorce court or event of death, this is not ideal for us.

Hence I am looking at an option of a less expensive house I'e found in DH's name (and invest this money separately) without gifting. But it may be just a bit short without it, hence my stamp duty question.

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