BrokeManager
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So I'm planning to purchase a home with my parents soon with my 1st-year salary. The mortgage will be with my mother.

My parents already own a home, so another mortgage for my mother's mortgage will be classed as an additional home.

Therefore, stamp duty will be in place. Currently, for the price of the purchase, stamp duty will be £54,000 at an effective rate of 6.75%.

After looking through a multitude of ways to reduce the cost, I still couldn't find a definitive answer.

My plan is to transfer the deed of my parents home to my father's name. Thus, my mother has no home and so it would be resulting in a £30,000 stamp duty? Would this work? Are there any other ways around it?

Any help appreciated!
Last edited by BrokeManager; 3 months ago
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JohnB1
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Hopefully the temporary changes to stamp duty announced yesterday will help you significantly? Take care and stay safe.
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nexttime
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So you're buying an £800,000 home on your first year salary? Wow.

If you have such vast wealth surely there is a way around this.
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StriderHort
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(Original post by BrokeManager)
So I'm planning to purchase a home with my parents soon with my 1st-year salary. The mortgage will be with my mother.

My parents already own a home, so another mortgage for my mother's mortgage will be classed as an additional home.

Therefore, stamp duty will be in place. Currently, for the price of the purchase, stamp duty will be £54,000 at an effective rate of 6.75%.

After looking through a multitude of ways to reduce the cost, I still couldn't find a definitive answer.

My plan is to transfer the deed of my parents home to my father's name. Thus, my mother has no home and so it would be resulting in a £30,000 stamp duty? Would this work? Are there any other ways around it?

Any help appreciated!
I'm not a lawyer, but they're not daft. for one they might ask why your mum 'gave away' the other house, and considering she 'gave' it to a partner. I don't see that flying.

I was guardian for my mum, and when they carried out the financial assessment, FIRST thing they did wa check back half a year+ to see if any 'suspicious' withdrawals or property transfers had been made.
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martin7
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(Original post by BrokeManager)
So I'm planning to purchase a home with my parents soon with my 1st-year salary. The mortgage will be with my mother.

My parents already own a home, so another mortgage for my mother's mortgage will be classed as an additional home.

Therefore, stamp duty will be in place. Currently, for the price of the purchase, stamp duty will be £54,000 at an effective rate of 6.75%.

After looking through a multitude of ways to reduce the cost, I still couldn't find a definitive answer.

My plan is to transfer the deed of my parents home to my father's name. Thus, my mother has no home and so it would be resulting in a £30,000 stamp duty? Would this work? Are there any other ways around it?

Any help appreciated!
You need to get proper legal advice on this -- as in, pay a solicitor. In fact, all parties -- your mother, your father, and you -- should get independent legal advice before proceeding.

I'm not a lawyer, though I am a homeowner. Things to think about (off the top of my head):

(1) The mortgage issue is irrelevant when it comes to being a second home. If she already owns a home and buys another one, then it's a second home. It doesn't matter whether either (or both) is mortgaged.

(2) A lender will normally expect the mortgage holders to match the ownership of the property. So if your mother is a party to the mortgage she'll also need to be an owner of the property (i.e. be on the deeds). What's her financial position? Can she contribute to your mortgage?

(3) As has been pointed out, there have been very recent changes to stamp duty, which sounds like you'll be paying less anyway.

(4) If your mother transfers her share of your parents' home to your father, then she's giving up her interest in it. Will this be a gift to your father? Or will she be expecting him to pay for her share of the ownership? How will that be calculated? Will that transaction be liable to stamp duty? What happens if your parents subsequently divorce?

(5) You say you're "planning to purchase a home with my parents soon with my 1st-year salary". How are you dividing up the ownership of the house you're buying? Will all three of you be owners? Or just you and your mother? Or will it be just you but you're expecting your parents to contribute, either up-front or an ongoing basis? Do you and your mother between you have the income to support paying the mortgage?
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