Joint Borrower / Sole Proprietor Mortgage for Home Movers in London

Our clients approached us after experiencing multiple setbacks that put their onward purchase at risk:

• The sale of their current home fell through, delaying their move and jeopardizing the property chain.

• They required equity from their existing home to cover the deposit and pay a £30,000 stamp duty land tax (SDLT) bill for their new purchase.

• Their current online broker was unable to secure the mortgage approval they needed.

• Estate agents were increasing pressure to proceed quickly.

Understanding the urgency and long-term goals of our clients, we proposed a creative solution to unlock the equity from their existing home while preserving their onward purchase:

• Remortgaging with Joint Borrower / Sole Proprietor (JBSP): We advised remortgaging their current home as a buy-to-let under a JBSP structure. Client 1 retained ownership of the property while Client 2 was added to the mortgage to boost affordability. This allowed the couple to extract the equity needed for their onward purchase without selling. This relieved the time pressure on the transaction as a new buyer didn’t need to be found.

• Onward Purchase Strategy: For their new home, we arranged another JBSP mortgage, but this time with Client 2 on the property deed and both clients on the mortgage. This preserved Client 2’s first-time buyer status, saving the couple £30,000 in stamp duty.

• Managing the Property Chain: With access to the required funds and no reliance on the sale of their current home, we reassured the estate agent and ensured the transaction proceeded smoothly.

By leveraging the JBSP structure across both properties, we unlocked the necessary deposit and reduced tax liabilities, securing our clients’ dream home without compromising their finances.

**Note: Independent legal advice was sought for both mortgages, and the clients fully understood and agreed to the implications of the arrangements.