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26M Supporting a Dependant Mother - Second Property Stamp Duty Land Tax

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  • 26M Supporting a Dependant Mother - Second Property Stamp Duty Land Tax

    Hello all, I used Legal Beagle a few years back for a parking ticket issue and had a fantastic experience, resulting in me beating the case.

    I, a 26-year-old male, purchased my first property in 2021 for my single mother to live in. Ironically, after 30+ years working in the NHS, health issues have made it impossible for her to manage financially on her own.

    Next year, I hope to purchase a property with my partner and I'm increasingly conscious that a hefty Stamp Duty Land Tax (SDLT) will apply given that it will be considered my second property.

    Here are the key details:

    The property is worth 250,000.
    The property has equity of 75,000 (from deposit + repayments).
    I, and my mother, are on the mortgage (she wanted to be included to bear some of the responsibility - a kind gesture).

    So far, my thinking is the following:

    1. I transfer ownership (deed) of the property to my mother whilst staying on the mortgage (given her income/age, no lender will give her a mortgage alone).
    2. In this new situation, I hope to be co-responsible for repaying the mortgage on this property but not considered a legal owner of the property.
    3. Upon purchasing a property with my partner next year, I would be considered "purchasing my next home" and not "purchasing a second home".

    Would this be a correct legal approach?

    Thank you in advance for any input,
    ******


    (P.S. I am incredibly grateful to be in a position where I can support my mother in this way, I hope this post is reflective of that).
    Tags: None

  • #2
    1. is unlikely to be possible, save in the unlikely event that the mortgage lender agrees.

    As to the rest, if 1 is possible, take specialist advice.
    Lawyer (solicitor) - retired from practice, now in academia. I do not advise by PM.

    Comment


    • #3
      Originally posted by atticus View Post
      1. is unlikely to be possible, save in the unlikely event that the mortgage lender agrees.

      As to the rest, if 1 is possible, take specialist advice.
      Thanks for the reply.

      Can you elaborate on the thinking behind why it would be unlikely? Is this something you've seen before?

      Thanks in advancce!

      Comment


      • #4
        A mortgage is a loan secured on property. Mortgage lenders expect the borrowers to be the owners of the property. You are proposing to be a named borrower but not to be an owner of the property charged as security.

        But by all means ask your mortgage lender what it thinks.
        Lawyer (solicitor) - retired from practice, now in academia. I do not advise by PM.

        Comment

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