To Move or not to Move?

[staunton]

Hi All,
Would like a more informed opinion on my situation
I bought my house 3 yrs ago and have a relatively small mortgage c.170K.
I am no longer single (my girlfriend is a prospective ftb) and the subject of moving/modernising and marriage has cropped up.
Modernising my house would cost c. 30K.
I feel there is better value for money moving to a more suitable house as this would cost maybe 50k extra but the house is then worth the full 50k as opposed to a smaller value increase after modernisation.
The only thing is I presume there are tax implications with me selling my house to buy another with my girlfriend.
I know I lose my ftb status but am wondering will I retain this by purchasing with my gf or maybe a percentage of it?

Also we are planning to marry in the next couple of years so would it be smarter to wait until after the big day if marital status might make things cheaper with regard to stamp duty and mortgage relief.

My current income is c.38k with no significant increases in the pipeline.
My girlfriends is c.32k however I dont want to be relying on this as the possibility exists of working part time should two become three in the next few years.

Any answers to above questions would be v gratefully received and any advice much appreciated.
Sorry for overlong mail tried to keep it as short as possible.
Thanks a million

 

[Afuera]

I know I lose my ftb status but am wondering will I retain this by purchasing with my gf or maybe a percentage of it?

No. In fact your girlfriend would lose her FTB status by trying to buy with you.

The only way she would be able to use her FTB status is if she bought on her own, without any contributions from you, since you would have a beneficial interest in the property if you helped her out. This means that you can not use the proceeds from the sale of the current property to fund the purchase of the new one either.

If you get married then it is even harder to claim that you do not have a beneficial interest in a property she buys on her own as her PPR.

In fairness, you have already used the exemptions for FTBers to get on the property ladder and you now have a roof over your head. I fail to see why the government should be helping homeowners climb their way up the property ladder.

Modernizing your current property will work out a lot cheaper than trading up.

 

[ClubMan]

I know I lose my ftb status but am wondering will I retain this by purchasing with my gf or maybe a percentage of it?

No - you are no longer a FTB for stamp duty purposes. If you buy jointly with your girlfriend then you will jointly be considered non FTBs. You can claim the remainder of your "FTB" 7 year preferential relief period for owner occupier mortgage interest relief though.

Also we are planning to marry in the next couple of years so would it be smarter to wait until after the big day if marital status might make things cheaper with regard to stamp duty and mortgage relief.

Don't think it makes any difference?

Post crossed with Afuera's.

 

[MrMan]

You could buy a new home in which case you won't incur stamp duty regardless of your status. I think you should look at what the house needs to have for you if you are planning to have a kid rather than which way makes the most economical sense. As has been said it means little either way to wait or buy now.

 

[moondance]

Am I right in thinking that if the OP bought a house with girlfriend then she could claim her FTB TRS for a full 7 years and he could just use up the remainder of his? If they were married how would this affect his girlfriend's TRS - would she only be able to claim under the remainder of time he has left as they are then a married couple and one entity so to speak or can she still get her full 7 years? Unless you're buying a large expensive house that would incur stamp duty anyway I don't see the benefit of FTB status - apart from TRS.

 

[ClubMan]

Am I right in thinking that if the OP bought a house with girlfriend then she could claim her FTB TRS for a full 7 years and he could just use up the remainder of his?

Yes.

If they were married how would this affect his girlfriend's TRS

I don't think it affects the overall situation?

Unless you're buying a large expensive house that would incur stamp duty anyway I don't see the benefit of FTB status - apart from TRS.

Well obviously if the purchase is SD exempt anyway then FTB SD status is irrelevant.

 

[staunton]

Thanks very much for the concise replies.
I'm now a lot more informed.
Thanks again everyone.