Q for a solicitor

[HomebuyerHopefully]

I have a q for a solicitor, not looking for advice, just personal views!

I live with my partner in his property in England. We will soon sell and buy something together.

I am originally from another country where I am a member of a housing coop, which means that I have access to a (tiny, but that’s probably irrelevant) flat. I don’t ’own’ the flat in the UK legal sense, I’m not on the (equivalent) land registry etc.

I have it in writing (an e-mail) from the tax authority in that country that that flat cannot be likened with UK property ownership, and should not count for stamp duty purposes (ie I will not be buying a ’second home’ with a higher stamp duty in England). I have also spoken to the HMRC and they have confirmed that I will not be eligible for the higher stamp duty. This was a phone conversation, I do not have that in writing.

If you were my solicitor, would you find this strange? Should I explain this, with the risk that that they will want to check that what I am saying is correct with the HMRC (could delay us? Create problems if they cannot explain it exactly?). Or should I just tick that I do not own any other property and not mention it further?

Alternatively, would it be easiest if my partner gives me x % of his property so that we both meet the ’replacing main home’ criterion? (How long do I have to have owned the property for that to apply, if there’s a limit, or how many % do I need to own?)

Or would a confirmation in writing from the HMRC make you as a solicitor reassured that it’s not anything dodgy?

I obviously don’t want to make anyone concerned they’re doing something wrong but it’d be easier not to have to spend time explaining a far away country’s odd housing coop system!

I’m not a solicitor, but is this flat you have access to like a timeshare, where you can use it so many weeks of the year and other shareholders use it the other time? Or are you the sole person (or your family members) with access? I think a timeshare would not count as a second home. But a true housing coop (thinking of what I know of them from my own home country), is a bit like having a leasehold flat.

But really you’d be better just asking a solicitor and generally they would give this little bit of free advice if you approached them with the intention of using them for conveyancing. I don’t think your partner giving you a percentage of his home would help though as you would still need to report you own another home elsewhere, as the form you complete asks for home ownership details for both of you individually.

Thank you very much for your response! But I'm not asking for advice on whether I would count as a homeowner or not, I've clarified that already with the relevant authorities and am keen for this not to sound like asking for legal advice :-) I mainly want a view from solicitors on whether I should explain this situation, and, if so, if my explanation would suffice, or if they would want it in writing from the HMRC - or if it would just be easier to use the 'replacing a main home' category!

I don't quite understand what you mean by it not helping if I replaced my main home here - if so, the lower rate applies, whether or not I own other homes, so then it would be kind of neither here nor there if I owned other homes?

I’m a solicitor. I’d want the email from the tax authority (translated if necessary) and written confirmation from HMRC.

It’s the most straightforward way.

Personally I’d be interested in the odd co-op system (which country?)

I am a solicitor and would definitely want verification of this

If you’re not a homeowner you don’t need to pay the higher rate.

The solicitor acts as an agent in submitting stamp duty, its not their liability - it’s a personal tax, they aren’t the tax authority. I would rely on what you’ve said.

When the higher rate stamp duty first came in I had a number of clients who changed their mind re their existing property ownership, there was lots of “let’s say I don’t have another property” wink, wink, nod nod I declined to act for those - IMO they only told me to shift responsibility onto me and wanted me to be accountable if it went wrong. That’s a different scenario. If you don’t own/have an interest worth more than £40k in a property you class as a FTB. It’s not guess work it’s factual.

Sorry I missed the part re an explanation- it’s better to be upfront.

Thank you so much for posting - great points of view! I think it's probably best that I ask the HMRC for something in writing then to be completely transparent. But also interesting to see that the solicitor won't get the blame, so I could also just not 'tick that box'. That was my main concern.

@HogDogKetchup, completely understand that you weren't comfortable working with people saying things like that :-(