Im pretty sure it doesnt apply but just wanted to double check.
unmarried couple with 4 children together live in family home which is owned by Mr X, Miss Y would like to purchase a property in her name (although funded by Mr X) as a BTL.
Because it is her only property and they are not connected, I understand that the purchase will not be subject to the additional 3% surcharge?
Is it an issue that purchase (with no mortgage) is funded by her partner?
Replies (3)
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Which statement accurately sums it up:
a) Miss Y would like to purchase a property in her name
or
b) Mr X would like to purchase a property in Miss X name.
The SDLT 3% surcharge penalises married couples only in this situation, so this should be OK (as long as the loan is formally documented to prevent any argument of a resulting trust re the property in favour of Mr X).
Is it an issue that purchase (with no mortgage) is funded by her partner?
Could be a major issue (and not just SDLT). Depends on what he wants from the arrangement.