First time buyer status

D

DJC

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Tried searching for this as I am sure this must have been answered somewhere on this site before, but browser just shows a blank and tells me its Done!

Anyway, here's my question. I am getting married soon and my partner has a house already. Do I automatically lose my FTB status when I get married? There are no children and I do not make payments towards the mortgage.

My second Q is, if I initiate a purchase in the next 3 weeks can I qualify for FTB exemption on stamp duty or is that based on date when the deal is finalised? I am planning to buy a site from my parents and I could accelerate the process if there would be any tax advantages to doing so.

Anyone have any advice?
 
DJC, if you buy the property in your own name and finance it yourself (mortgage based on your earnings, no lump sum payments from your intended) you will remain a FTB.

Buying a site (without a build contract relating to that site) is not a purchase of residential property for stamp duty purposes anyway. It is normally subject to stamp duty but you may be able to claim relief on the transfer of a site from a parent to child.
 
Thanks Nige. Are banks likely to refuse to grant a mortgage in my name only once I am married - even if it is affordable based on my salary alone?
 
Well, it's just anecdotal, but a friend of mine was refused a mortgage in their own name because they were married. There was a child though, in which case its was the family home rather than simply a property. So their cunning plan to preserve one FTB status didn't work...
 
A Family Home is a property within which a married couple ordinarily reside. It does not matter whether there are children or not.

Banks do not like one spouse only to be on deeds and on mortgage because in the event of a dispute the non owner/mortgagor is likely to say - its my home, you can't take it, I did'nt understand, I never signed anything etc.,etc. If they are on the deeds and the mortgage, that's a difficult argument to make.

mf
 
i feel banks etc will not dictate that both married parties are on the deeds and mortgage. from experience in the case of a sole married owner some banks get the other married party to sign under independent legal advice a deed of confirmation incorporated in the morgage which has effect of that party mortgaging to the bank any interest they may acquire in the property their liability been restricted to this. if lender wanted full recourse they would get a guarantee from the non owning spouse.
 
I am making a specific point in relation to a Family Home. My experience is that lenders do not have issues with a spouse in a marriage buying and mortgaging a property in their sole name so long as it is clearly an investment property. Mostly in that instance they will ask that the non owning spouse will execute the Deed of Confirmation.

When it comes to a Family Home though my experience is that lenders will not be willing to lend for the purchase unless the property is bought, held and mortgaged in joint names. Precisely because it is a Family Home.

And of course if you are a married FTB buying an investment property then you do not get the benefit of the FTB rate of stamp duty.

mf
 
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