Shared Ownership & Stamp Duty
Answered on 24 October 2018 by Nick Morrey
My partner and I are looking to buy a property through shared ownership. To be eligible our total earning cannot exceed £60k which they do so I am going to apply for it as a single applicant. Can we still get a joint mortgage? Does it need to match? Also will the Stamp Duty we pay be based on the share we buy?
As you rightly say these schemes are only open to households who earn £60,000 a year or less and a household is defined as the number of people who are buying the home. Even though the lease would be in your sole name, I think you would find that the freeholder will not agree to you having a mortgage in joint names with someone who is also going to be living in the property.
That said, if the freeholder is amenable there is one lender who will agree to having more people named on a shared ownership mortgage than on the title deeds, subject to meeting their underwriting criteria.
With regards to the Stamp Duty Land Tax (SDLT) you only pay this on the share you are buying, however you can elect to pay on the full market value and this is the preferable choice if you are thinking of increasing your share of the property in the future. It is possible that you will be exempt from paying any SDLT as the current threshold is £125,000, or £250,000 if you are a first time buyer.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 03304 332 927 and one of our consultants will then be able to advise you on your situation.
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