• New Stamp Duty Fees On Second Homes: Am I Liable?

    By Guest on 31st Mar 2016

    My partner and I are looking to buy our first home together. I don't own a property, but my partner does (50/50 in partnership with his brother). His brother lives in the property they own, my partner and I live together in a rented property.

    If we purchase a new property together as joint mortgage holders and joint owners on the deeds - are we liable for the increased stamp duty charges that come into effect tomorrow?

    If so, how can we avoid this? Is the only option for me to purchase the property myself and not put him on the deeds/mortgage? And if that is the case - how can he protect the money he puts into the property (i.e. through his share of the deposit)?

    We are not married.
    Thanks in advance!

  • 2 Answers

    By Guest on 31/03/2016

    Hello,

    Yes you will be liable. If you buy the property in your sole name you could enter into a declaration of trust whereby you owned the legal title on trust for you and your partner or he might be able to register a legal charge (a second mortgage). This only works while you are not married. If you marry in future and want to move, you could not even avoid the duty by buying in your sole name ss the law treats a married couple as a single entity. Could your partner's brother buy him out of the shared property?

  • By Guest on 01/04/2016

    Thank you very much for the advice.

    We will look into a declaration of trust. I thought that would be the case.

    It sounds like it'll be a while before I get a wedding ring then!

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