Stamp Duty: Bus Partner & I buying 4 houses, Im FTB, partner is not. me 1/4 ptnr 3/4?

Im the process of bidding on some foreclosed houses.

I am a first time buyer but my business partner is not. He will be taking 3/4 share in the properties. I will be taking out a mortgage for my share.

Just wondering if it is possible to avoid paying stamp duty on a greater portion of the asking price as the total amount for the properties will exceed the threshold for first time buyers. The units are being sold together and not seperately.

Basically can I claim to be buying more than i actually am to reduce the stamp duty burden on my partner?

Re: stamp duty

You do know first time buyer relief is only applicable to residential properties that you intend to use as your principal place of residence?

It doesn't sound like it would be applicable to an investment in 'units' with a business partner.

But essentially if you were buying to live in a property, with another buyer who is not a first time buyer you lose the relief anyway- there is no apportionment.

Re: stamp duty

it would be my primary residence the house but the other 3 would be owned by my partner.

Re: stamp duty

I think that the following should work.

Agree the purchase price with the vendor.

Then do two contracts for sale.

You are buying one property as your principal private residence.

Your friend is separately buying 3 properties as an investment.

You will pay no stamp duty.

The vendor's solicitor will have to be paid to do the extra work and so will your solicitor, so make sure that the saving is worth it.

But it's probably worth doing anyway to have separate ownership of the properties and not to be partners.

Of course, you will need separate mortgages as well, which might be a problem. But your residential mortgage should be cheaper than his residential investment mortgage.

Brendan

Re: Stamp Duty: Bus Partner & I buying 4 houses, Im FTB, partner is not. me 1/4 ptnr



Ive changed the title to more fully reflect the question.

aj
moderator

Re: Stamp Duty: Bus Partner & I buying 4 houses, Im FTB, partner is not. me 1/4 ptnr

If the units can only be sold together- the sale of one house is only part of a larger transaction and you may lose the relief on this basis. If the units are capable of being sold separately you can qualify for the relief if you buy one unit that you intend to reside in as your ppr in your sole name. However you must also be careful as to how the purchase monies are provided for this property= the money must come from you only, and not from your non ftb partner.

Re: Stamp Duty: Bus Partner & I buying 4 houses, Im FTB, partner is not. me 1/4 ptnr

Apart from the stamp duty issue, this sounds very messy. Are you sure you know what you are getting into?