In light of forthcoming changes in Stamp Duty coming into force come 1st April. I currently have a property which is on a repayment mortgage. My partner and I are looking at purchasing a property together (she doesn’t have a mortgage). Question is. If I obtain consent to lease from the mortgage company, how will the effect Stamp Duty come 1st April ?

Is Stamp Duty driven by the mortgage product or the title deeds ?

If to title deeds would a mortgage C° put two persons on a mortgage and one person on the title deeds ? thus not being liable to the additional 3% Stamp Duty

Appreciate any comments received do not constitute financial advise

If you put 2 people on the Mortgage, banks will usually insist that the same 2 people are on the deeds.

The additional 3% relates to homes purchased which are not going to be your primary residence.

The additional 3% relates to homes purchased which are not going to be your primary residence.

Not quite. The additional 3% is due on any residential property you buy if you already own one, whether or not the new one will be your primary residence.
If you subsequently sell the original property within 6 months, I think, you’ll get the 3% back.

If your partner buys the new home herself, no additional stamp duty is due, but it will have to be her name only on the mortgage.

Thanks suburbanreuben, had a feeling that would be the case. God damn it.

Chew, no harm in asking, but I can foresee the response.

Right, house sale here we come by the looks of it

Suburbanreuben is correct, it’s an extra 3% on any second property regardless of whether primary residence, non primary residence, let or whatever reason. The only difference is I believe you have 18 months grace to sell your old place.

Regardless, if you’re planning on letting out, increase in stamp duty is small news, a much bigger consideration is that the tax rules of offsetting mortgage interest against income are changing drastically. May put a lot of BTL landlords into the red. I wouldn’t bother now that’s for sure.

I don’t understand, is it not down to what is the definition of a main residence ? Is this not considered where one votes or registered address. If that’s the case then would renting the property on a consent to lease from the mortgage company and purchasing another property with my partner would this not reduce any liability of the SDLT

HMRC have won court cases against the manipulation of primary residence when people have had their post etc changed to another address when trying to avoid capital gains. They gave also been successful in proving joint ownership of properties when the tax payer has tried declare it as been their spouses who would pay a lower capital gains rate. The subs have been on the basis that the deposit came from joint funds and/or the rental income went into a joint account. The tax payer thought they were safe in having submitted a form 17 to HMRC.

think the only get out would be to become an MP