1st time buyers (stamp duty exemption)

[rob523]

Hi,

My girlfriend and I are going to buy a house over the comming months. As we're both first time buyers we'll have a stamp duty exemption. As this will be a Starter Home, and we plan to upgrade in say 5 years, wouldn't it make more sense for us to put the house in just one of our names, so when we upgrade down the line the other would then have first time buyer status, and a further stamp duty exemption. This seems like a no brainer to me regards minimising stamp duty on our next purchase, or am I missing something?!

Kind Regards

Rob

 

[CCOVICH]

Your idea makes perfect sense, but the lender may insist that both of your names are on the deeds, unless one of you qualify for the mortgage in your own right.

The topic has been discussed on AAM before, if you search you may find some more iin depth info.

 

[ClubMan]

I'm not sure that it necessarily makes so much sense. The person who is not named on the deeds will be taking a significant risk in that they will have no obvious legally verifiable interest in the property which could caused problems in the event of a breakup. On the other hand one person on the deeds means that they could avail of the owner occupier rent a room scheme by collecting rent from the other partner.

 

[CCOVICH]

Well yes, I wasn't going to go down the road of what may or may not happen in terms of the relationship-but I have a feeling that this ground is covered in other threads in that if someone has been contributing to the mortgage they may be entitled to something if a break-up occurs? And if marriage happens, then legal rights do kick in?

 

[ClubMan]

Well yes, I wasn't going to go down the road of what may or may not happen in terms of the relationship-but I have a feeling that this ground is covered in other threads in that if someone has been contributing to the mortgage they may be entitled to something if a break-up occurs?

Yes - fair enough.

And if marriage happens, then legal rights do kick in?

Well the Family Home Protection Act kicks in for sure. I'm not sure that marriage necessarily qualifies the "passive" buyer for a slice of the action other than under this act. Anyway, probably covered in other threads...