{"id":121604,"date":"2021-08-23T13:00:57","date_gmt":"2021-08-23T06:00:57","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-are-the-tax-and-mortgage-implications-if-i-buy-a-flat-with-my-son\/"},"modified":"2021-08-23T14:11:46","modified_gmt":"2021-08-23T07:11:46","slug":"what-are-the-tax-and-mortgage-implications-if-i-buy-a-flat-with-my-son","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-are-the-tax-and-mortgage-implications-if-i-buy-a-flat-with-my-son\/","title":{"rendered":"What are the tax and mortgage implications if I buy a flat with my son?"},"content":{"rendered":"


\nI would pay a \u00a3100,000 deposit and want to own two-fifths and leave my share to him in my willQ My 30-year-old son is paying so much in rent that he is struggling to save a big enough deposit to buy his first flat. I have some spare cash and am happy to help by providing a big deposit. Probably, he will get a mortgage for about \u00a3150,000 and I will pay a \u00a3100,000 deposit. He lives and works in Windsor, so property and rent are expensive.What I would like is for the flat to be two-fifths owned by me and three-fifths owned by him. I will leave my share to him in my will, so he will eventually own it all. Please could you advise on what the legal and financial implications of this arrangement will be? For example, will it be straightforward to apply for a mortgage, and are there any tax implications (including stamp duty or inheritance tax and so on)? HMA The first thing that popped into my head on reading your email was this question: \u201cWhy, if you want your son to have the whole property after your death, don\u2019t you just give him the cash and let him buy in his sole name now?\u201d One of the reasons for the question is that if you buy the flat as joint owners, your son won\u2019t get the benefit of first-time buyer stamp duty land tax (SDLT) relief. This makes the first \u00a3300,000 of the purchase price of property costing up to \u00a3500,000 SDLT-free with a charge of 5% on up to the remaining \u00a3200,000. And first-time buyer relief is available for joint purchases only if both or all joint owners are first-time buyers and intend to occupy the property as their only or main residence. Then I realised that as the purchase price is likely to be \u00a3250,000, there wouldn\u2019t be an SDLT bill anyway because it falls into the \u00a3250,000 nil-rate band. But then I remembered that the purchase of a second property (whether sole or joint) means that the higher rate of SDLT applies to the whole purchase price. So \u2013 and assuming that you already own property \u2013 instead of an SDLT bill of \u00a30, there would be a bill of \u00a37,500 (3% of \u00a3250,000). Of course, if you don\u2019t own a property already, you can ignore what I\u2019ve just said about the higher rate of SDLT as it doesn\u2019t apply. Continue reading…
\n
\nSource : theguardian.com
\nRead more…What are the tax and mortgage implications if I buy a flat with my son?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

I would pay a \u00a3100,000 deposit and want to own two-fifths and leave my share...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-121604","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vDm","jetpack-related-posts":[{"id":112633,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/im-renting-in-london-should-i-try-to-buy-now-or-wait\/","url_meta":{"origin":121604,"position":0},"title":"I'm renting in London \u2013 should I try to buy now or wait?","date":"November 25, 2019","format":false,"excerpt":"\r I\u2019m saving for a deposit and wondering if I should leave it a few years until I can build up more Q I rent in London and I\u2019m on a yearly wage of \u00a328,000. When I have saved enough to put down a deposit on a property (ironically I\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":963,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/does-the-3-stamp-duty-for-second-properties-apply-in-scotland\/","url_meta":{"origin":121604,"position":1},"title":"Does the 3% stamp duty for second properties apply in Scotland?","date":"January 7, 2016","format":false,"excerpt":"\r We might rent out our flat and buy a house, but are unsure if the stamp duty rules apply to our new house even though we\u2019d be living in it Q I live with my wife in a flat in central Glasgow and we\u2019re looking to move somewhere quieter\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":136144,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/we-want-to-rent-out-our-manchester-house-when-we-move-but-what-are-the-tax-implications\/","url_meta":{"origin":121604,"position":2},"title":"We want to rent out our Manchester house when we move but what are the tax implications?","date":"May 1, 2023","format":false,"excerpt":"\r I have a new job in London, although we cannot afford to buy a property thereQ My partner and I currently own a property in Manchester. We purchased the house in 2018 and the value has risen from \u00a3150,000 to \u00a3200,000. I have been offered a job in London\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":121080,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/can-we-buy-a-flat-and-rent-it-to-my-son-using-by-his-benefits\/","url_meta":{"origin":121604,"position":3},"title":"Can we buy a flat and rent it to my son using by his benefits?","date":"July 26, 2021","format":false,"excerpt":"\r He has a long-term mental health problem and we don\u2019t want him to keep losing his accommodationQ I wonder if you can help. My 42-year-old son has a long-term mental health problem, schizophrenia. We want to establish him in his own home long term. He has long periods when\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":114654,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/i-cant-afford-a-flat-in-london-even-though-ive-saved-a-deposit\/","url_meta":{"origin":121604,"position":4},"title":"I can't afford a flat in London even though I've saved a deposit","date":"March 2, 2020","format":false,"excerpt":"\r I\u2019ve lived in Wanstead all my life and my hopes were raised by an \u2018affordable\u2019 developmentQ Since graduation from art college in 2009, I\u2019ve been able to live at home rent free so despite being on a lowish salary of \u00a320,000 as a trainee teaching assistant, I have managed\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":81111,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/whats-the-best-way-to-save-for-a-deposit-for-a-flat\/","url_meta":{"origin":121604,"position":5},"title":"What's the best way to save for a deposit for a flat?","date":"February 26, 2018","format":false,"excerpt":"\r I\u2019m hoping to save \u00a325,000 and will use a help-to-buy Isa \u2013 where else should I put my money? Q I have a good credit rating, am disciplined with money and earn \u00a327,000. 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