Lender acknowledges the important of relatives' support
Suffolk Building Society has announced the launch of a new mortgage option, welcoming joint borrower sole proprietor (JBSP) applications across residential, buy-to-let (BTL), and holiday let properties. This enhancement is available for both UK-based and expatriate applicants and applies to both property purchases and remortgages, a news release highlighted.
Under the JBSP structure, up to four individuals from two separate households can be named as borrowers, while only one or two will appear on the property’s title deeds. To qualify, borrowers must be immediate family members, which includes parents, children, siblings, as well as stepfamily and adoptive family members. This arrangement allows additional income to be included when assessing borrowing capacity, providing greater flexibility and support in affordability for buyers.
The Society noted that JBSP is not just limited to assisting first-time buyers. It offers wider support in varied family situations, such as parents helping children facing divorce or a family breakup by contributing to mortgage payments or children assisting parents in retaining their family home.
Suffolk Building Society also highlighted the tax benefits of the JBSP arrangement - because supporting family members are not listed on the property deeds, they avoid legal ownership of the property and its potential value appreciation, thus sidestepping additional tax liabilities such as capital gains tax or additional stamp duty.
Charlotte Grimshaw, Suffolk Building Society’s head of intermediary relations and mortgage sales, emphasised the flexibility and societal relevance of this product, saying: “Family is important, and where possible, family members want to help each other. By launching JBSP, we’re supporting this societal norm and providing another vehicle for the generations to pool resources in a way that goes beyond simply ‘gifting’ money.”
Grimshaw also stressed how JBSP can help not only first-time buyers but those facing life changes, such as separation or family transitions, where joint financial support can help maintain homeownership or assist with new purchases.
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