On the deeds of parents home, about to buy first property, do I have to pay additional property stamp duty tax?

[qwerty2025]

Hey All,

I am currently on the deeds for my family home. (My mum still lives in the property. I do not. I was added when my dad passed away 10 years ago. I have a 25% share, my brother has 25% and my mum has 50%).

My husband and I are about to purchase our first property. We have been informed we are not first time buyers because I technically 'own a property'. Very frustrating!! I am trying to find out, will this new property we are trying to purchase currently, be considered a 2nd property for me? Which means we would not only miss out on first time buyers stamp duty tax relief, but also have to pay even more as it's considered an additional property?

Many thanks,
Bethan

Yes, you would have to pay the additional stamp duty as you are not a first time buyer; you already own property. Why were you added to the deeds of your parent's house?

Your conveyancer will advise you. but yes you already hold a major interest (worth £40k or more) in residential property your new purchase will be an additional home so higher SDLT will apply.

Yes, it’s your second property.

Are you on your mum's deeds to avoid paying tax in it if she passes?

Yes its a second property

You don't 'technically' own a property - you black and white, clear as day own a property.

I'm missing why would you think buying somewhere else wouldn't be classed as a second property?

If possible can your DH buy the new house on his own, and add you to the mortgage later down the line?

Yes it's your second property.

Another one interested to know why you are on the deeds of your mothers house?

They can't do this. The spouse of a home owner is automatically no longer a first time buyer regardless of whether they have owned their own property.

Oh and if you were to divorce, your husband would be entitled to a share of your mothers p roperty too, as part of the divorce settlement.

And if you ever need benefits you'd be exempt because you have more than one property.

So you haven't been as clever as you think you have.

Can your DH buy it alone and then put you on the deeds a few years down the line?

@EllenJamesian ah interesting thanks, I know someone who did this however it was several years ago. Is this a recent change?

Why is everyone seemingly assuming this has been done for tax reasons?
Maybe OP's parents were joint tenants on the property and her dad left his share to his children rather than everything to his wife.

Yes.you own a house so are not a first time buyer. Also it will be a second home.

That would be fraud and could result in imprisonment

This sums up what I was going to say too

Genuinely, is that fraud? People get added to mortgages fairly regularly I would have thought.

I thought the tax loophole of going on parents’ deeds had been closed. I think down the line it could count as deprivation of assets. Could anyone who knows what they are talking about explain?

It wouldn't be the DHs second property a lot of people who are married have a house each.

Oh really, that's interesting

You cant just add someone to a mortgage. You would have to apply for a new mortgage and at that point the Op would have to declare that she wasn’t a first time buyer.

Anyone can add anyone else to the deeds of their house so that it is owned as tenants in common. However, the consequences of doing so are clear. If someone does this in order to avoid paying future care home fees it can be considered deprivation of assets - there is no time limitation on this.

Would your brother be in a position to buy your share of your mother’s property?

(Before completion of your purchase, I mean - you still wouldn’t count as a FTB but you wouldn’t have to pay the higher rate of stamp duty if he bought your share before completion.)

You can be on the deeds as the legal owner but not the beneficial owner of a house through a will/ trust

I was on the deeds of my late parents house as when my mum passed away her half was put in trust for the grandkids

if I wasn’t on the deeds through the trust my father could have easily sold the house or remarried and new wife got my mums half
& not much we could do ( not that he would / did )

It didn’t stop me buying a house I just had to show the solicitor the will where It proved I wasn’t a beneficiary of the will and wasn’t the beneficial owner of the house

If have thought it was relatively normal to be on the deeds if her father has died, as often in that case his ‘half’ is left to the children / whoever, with a life interest for his wife to remain in it.