2nd Property Stamp Duty?

[Dullblue]

Hi,

I am currently in the process of buying a property, on a Joint Mortgage, Sole Proprietor basis, with myself being the SP. My husband is on the mortgage application to secure the funding.

He has owned a house for the last 10 years, and I am not on the deeds/mortgage, and therefore I consider myself to be a First Time Buyer.

The house I am purchasing is 505k, so the FTB Relief would not be applicable in this case... However I'm wondering if I will only have to pay basic Stamp Duty, as apposed to the 'Additional Property' one for 2nd properties, as I have no properties etc registered in my name.

Can anyone shed some light on this?
Thanks

I think if you have a joint mortgage then you'll need to pay the additional stamp duty (but I'm not an expert). Could a broker help?

My understanding is that if both of you own the property and one already owns an additional property they have to pay 3%. However I think you need to clarify with your legal advisor.

As it is your husband's second property, the additional payment is due. At least, it is in Scotland.

@Lightsabre The mortgage broker says its do-able, but the solicitors aren't so sure.

@leckford
@gallusalice79 It would not be my husbands second property, as I will be the sole owner.

As far as I am aware (could be wrong), if it's a joint mortgage then it's considered his property as well as yours. You can split the percentages differently from 50/50 but a lot of banks don't really like those kind of mortgages.

Best to go to a broker.

How can he be a party to the mortgage without being a co owner. That's legally incoherent and I would have thought might be considered a device to avoid stamp duty.

@worriedmutha its called a joint borrower, sole proprietor mortgage.

I think it would be liable to the additional stamp duty on whole transaction though ask HMRC assuming he will live there and /or get some proceeds on sale.

www.samconveyancing.co.uk/news/conveyancing/joint-mortgage-sole-proprietor-stamp-duty-land-tax-implications-6085

Married couples are counted as one entity for the purposes of stamp duty now, so you will more than likely have to pay the additional 3% stamp duty. Your solicitor will be the best person to talk to though, brokers shouldn't be giving advice on stamp duty.

@worriedmutha the joint borrower sole proprietor mortgages are definitely legal and are probably used to avoid stamp duty, but usually where the applicant not going on the mortgage deeds genuinely has no interest in the property, for example a guarantor mortgage would now give rise to the additional stamp duty charge but with a joint borrower sole proprietor a parent can help a child get on the property ladder without having to pay the additional stamp duty charge.

Thanks Chatty. I understand the logic but I hadn't heard of these mortgages before. Mumsnet is a constant source of useful info.

Yes assuming you are married (you say husband so am guessing this is correct) then additional stamp duty would be due.