Adding US Spouse to Mortgage in UK

Hi. I cant get a straight answer from my bank so i wondered if any UK spouses have managed to add there US spouse to your existing mortgage while the USC is  living and working here with her spouse visa.  (LLR)
I told my bank she had Limited Leave to Remain but they didnt understand what i was talking
Thanks

From a tax perspective I think this could cause problems:

1. You are making a Potentially Exempt Transfer to a non-UK domiciled spouse so there could be UK IHT if you died within 7 years

2. The US spouse could face paying US tax on foreign currency mortgage gains if the Sterling mortgage is repaid or refinanced when the dollar is stronger again

3. The US spouse could end up paying US tax on the gain on the sale of the UK residence whereas there is no UK tax

4. The US spouse's estate could be subject to both UK inheritance tax and US federal estate tax on death of that spouse

Generally speaking, most people try to eliminate the US spouse from having any share of ownership of the UK residence for tax planning reasons.

Thanks

I just wanted to add her so, now she is working, we can increase our borrowing and move to a larger house.

I called back my mortgage co and it looks like we cant make a joint application.

i was told that my hubby had to be resident fort two years, and i would have to re mortgage (through a department they have ) in order to get a joint mortgage, I am with scottish widows.

Thanks

I just wanted to add her so, now she is working, we can increase our borrowing and move to a larger house.

I called back my mortgage co and it looks like we cant make a joint application.

Yes I do understand the point, but you may end up paying Uncle Sam when you could have avoided this if things had been structured differently at the start, so take legal advice from a solicitor before acting...

Quite frankly, I don't give a hoot about "Uncle Sam".  I LIVE here.  THIS is my home.  My income is being taken into account to buy and make payments on the house.  You better believe my name is on the mortgage!

May not be the practical way of dealing with it, but really, considering all the other governmental intrusions on my life with my husband...damned if I'm going to risk being left homeless because I don't have an ownership in our family home.

Peedal - i'm with you on this.  I will be adding my husbands name to the new mortgage we'll be getting in a few months, we're married, it'll be OUR house, his name is on it!  Hang the consequences.

Getting a mortgage on a spousal visa was an absolute nightmare for my husband and I.  It might be easier adding someone to the mortgage but i'm not sure, they seem to be very suspicious as if you don't have ILR you are considered a "flight risk".  Good luck!

The mortgage will be based entirely on my salary, but i want his name on it...it seems odd that you can't easily get a joint mortgage without an ILR but to have a joint mortgage would be a major piece of evidence when applying for the ILR?

The mortgage will be based entirely on my salary, but i want his name on it...it seems odd that you can't easily get a joint mortgage without an ILR but to have a joint mortgage would be a major piece of evidence when applying for the ILR?

Same here, the mortgage will be based on my salary, good for the  FLR & ILR, but also we are in this marriage together, and i want everything to reflect that.

Change mortgage companies.  There is a thread in here about specialist mortgages for non-permanent residents from the Natwest.

Vicky

My mortgage company would not allow it. Hubby is the only one on the mortgage until we remortgage in 2009.

Thanks guya, yes we need to look at the tax implications.

I spoke to a mortgage broker regarding adding my wife but he said i would be hard pushed to find anyone that will do this now bc of the money laundering rules and regs that have come in.
He said the best way is to have it in my name and find a company that will take my wifes income into consideration.

Im not sure if this will be diferent when she has ILR in a year.

Quite frankly, I don't give a hoot about "Uncle Sam".  I LIVE here.  THIS is my home.  My income is being taken into account to buy and make payments on the house.  You better believe my name is on the mortgage!

May not be the practical way of dealing with it, but really, considering all the other governmental intrusions on my life with my husband...damned if I'm going to risk being left homeless because I don't have an ownership in our family home.

It is very practical when you consider the number of widowed and divorced women who end up in poverty because they depended on their husbands to take care of everything.

For estate purposes, you can do a Transfer (TR1) through your solicitor and add the spouses name to ownership of the home but not on the mortgage.  There is a clause you put on the transfer that they will be responsible for the mortgage if the other dies, etc.  This way, the ownership of the home will be in both names if not the mortgage.

Working on this one right now for our own home.


~BEG