Stamp duty surcharge conundrum

[lemonchandeliers]

Hi

I own a property (in my name only) which I am hoping to renovate once planning permission comes in. I am renting with my partner & the rent threatening to increase. We are considering purchasing a property to live in whilst we wait the inordinate amount of time it is taking to get planning permission and renovate. Neither of us currently has a mortgage.
If my partner buys the 'interim' property solely in his name, he wouldn't have to pay a stamp duty surcharge I assume. Once we are in the 'interim' home, we would need to put his name on the deeds of my renovation property, so that we can use his earning power to get a Self Build Mortgage. Once he does that, he is essentially the 'owner' of 2 homes, albeit he would only own 1% of my house as a solicitor confirmed I could do. What happens when he gets put on the deeds & gets a mortgage against this property? Does he have to pay a stamp duty surcharge on the renovation home? If it's just putting him on the deeds, not actually buying it as such, would there be any tax liability? Would that kick in when he gets the mortgage? Can anybody help?

Many thanks and kind regards

[maths]

If my partner buys the 'interim' property solely in his name, he wouldn't have to pay a stamp duty surcharge I assume.

Correct, assuming that this is your partner's only interest in a dwelling (i assume by "partner" you are not referring to a "civil partner").

To obtain a mortgage requires those borrowing to appear on the legal title to the property.You would therefore need to add his name to yours and thus legal title is held jointly and a joint mortgage obtained.

There is no requirement that he takes a beneficial interest in the property. Assuming he doesn't then the 3% SDLT charge is inapplicable as your partner will not have interests in more than one property even though he is on the legal title.

If however on adding his name to the title you also transfer a beneficial interest to him from you (irrespective of the % size transferred) he would then have an interest in two properties. However, on the basis you gift (ie not sell) the % to him there is no chargeable consideration and hence no SDLT charge at all on the transfer.