Divorce and first time buyer status

[Mjward]

I bought my property in 2011 and I am only person listed on the deeds. I married in 2014 with my wife never having owned a property nor did we then add her to deeds. We are now in the process of an amicable divorce and I'm trying to be as helpful as I can.

In the situation above, post divorce, if she was to buy her own property to live in, how would she be treated from a stamp duty perspective?

[pawncob]

AS she has never owned a property she must be a first time buyer. (occupation and ownership are two different things)

[Mjward]

Ah that is great.
I was confused as to whether via the marriage and implicit share of my property that it would mean she would not be viewed as a first time buyer.
I take it this only applies post divorce ie if I try and help her buy a place in her sole name whilst we are still technically married/waiting for divorce to be finalised, then she would not count as first time buyer or is she regardless of the marriage status?

[pawncob]

https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note

[Mjward]

Thanks for the link, one I've read before and perhaps missing something but doesn't seem to clearly cover this scenario.

If we take the following relevant Q&A...

Q6 refers to joint purchasers and spouse previously owning dwelling.

However I'm looking at my soon to be ex wife solely making the purchase of a new place and not jointly

Q11 refers to previous joint purchase and then divorce.

However we didn't make a joint purchase of original property.


In essence I am looking to know that if I am legal sole owner of our marital home, can my wife in her sole name purchase a property to be her primary residence and benefit from relief?

Or do we need to wait for divorce proceedings to conclude?

[pawncob]

Although marriage may give your spouse certain property rights, she does not own the property. Any divorce settlement may give her the property or a cash settlement, but as of now she would be a first time buyer.

[Mjward]

Very helpful. Thank you sir

[SDLT Geek]

If a person buys a property when they have a spouse, then whether or not the 3% surcharge applies can depend on whether the 3% surcharge would have applied had the spouse bought.

But that rule only applies to spouses who are “living together”. Spouses are not “living together” if they are separated in circumstances likely to prove permanent.

[Mjward]

Thank you for your assistance.

Sounds like that is what works for my current predicament ie currently married but not living together and won't be going forward ie she is free to purchase s property now as a first time buyer.

From what I read, it's difficult to tell if she will purchase as simple first time buyer or whether she claims the extra costs back post transaction. In the case of the former, without the current ownership of a divorce certificate, what proof of circumstances is required?