Stamp Duty Help!
Discussion
Looking at the collective for some guidance please..
I am moving into my partners house she bought it and paid stamp duty. She has about 45% equity and the rest is mortgaged.
For simplicity let's say £1m house with £550k mortgage.
The idea is for me to pay £450k off the mortgage when it ends and the residual mortgage amount of £100k we will jointly pay off.
My question is what do I pay the stamp duty on?
The aim is we will both own 50% each and will have contributed equally.
Some people suggest I need to pay stamp duty connected with remaining mortgage amount £100k.
Others on £500k...
If it helps we are not married.
We want to have it legally clear we both have equally equity in the house should we split etc.
Thanks for the help
I am moving into my partners house she bought it and paid stamp duty. She has about 45% equity and the rest is mortgaged.
For simplicity let's say £1m house with £550k mortgage.
The idea is for me to pay £450k off the mortgage when it ends and the residual mortgage amount of £100k we will jointly pay off.
My question is what do I pay the stamp duty on?
The aim is we will both own 50% each and will have contributed equally.
Some people suggest I need to pay stamp duty connected with remaining mortgage amount £100k.
Others on £500k...
If it helps we are not married.
We want to have it legally clear we both have equally equity in the house should we split etc.
Thanks for the help
Wouldn't it make sense just to pay her back half of what she paid at the time?
Seems a bit nit picky TBH, I don't think I would have even considered the stamp duty element but then I've not been in that situation.
Anything other than selling and buying a new house together and splitting everything down the middle is not going to be a perfect split.
Seems a bit nit picky TBH, I don't think I would have even considered the stamp duty element but then I've not been in that situation.
Anything other than selling and buying a new house together and splitting everything down the middle is not going to be a perfect split.
Are you asking the question from a legal standpoint or a fairness of equal ownership?
From a legal standpoint,I dont think there will be a stamp duty payment, if you don't own another property at the same time as this one, so there will be no payment.
If you're talking about from an owning 50/50 contribution point of view, then if you feel the need to be so accurate, pay her half of what she paid at the time of the inital purchase.
She might have bought it during the payment holiayds for stamp duty that occured 5 or 6 years ago, in which cae you'll need to gibe her nothing
From a legal standpoint,I dont think there will be a stamp duty payment, if you don't own another property at the same time as this one, so there will be no payment.
If you're talking about from an owning 50/50 contribution point of view, then if you feel the need to be so accurate, pay her half of what she paid at the time of the inital purchase.
She might have bought it during the payment holiayds for stamp duty that occured 5 or 6 years ago, in which cae you'll need to gibe her nothing
MattS5 said:
Are you asking the question from a legal standpoint or a fairness of equal ownership?
From a legal standpoint,I dont think there will be a stamp duty payment, if you don't own another property at the same time as this one, so there will be no payment.
Thanks my question is from a legal standpointFrom a legal standpoint,I dont think there will be a stamp duty payment, if you don't own another property at the same time as this one, so there will be no payment.
Panamax said:
What are you expecting to get for your £450k? If it's part ownership of a house you will need a solicitor (or conveyancer) to deal with the paperwork. I believe any change of ownership would require consent from the mortgage company.
Correct, hence want to understand stamp duty implications you'll pay SDLT on it at the normal rate. Its a transfer of property.
you could just marry her/him/they/them
edit just re read it:
you are gifting her 450k to pay off most of the mortgage
she is then gifting you 50% of the house?
you will then jointly pay off the remaining mortgage.
its not really a gift, SDLT payable.
you could just marry her/him/they/them
edit just re read it:
you are gifting her 450k to pay off most of the mortgage
she is then gifting you 50% of the house?
you will then jointly pay off the remaining mortgage.
its not really a gift, SDLT payable.
Edited by z4RRSchris on Thursday 28th May 17:01
Yes, if you're buying half a house then you'll be liable to pay Stamp Duty on half a house.
If it was a genuine outright gift there would be no SD.
I believe the stuff about mortgages only comes into play if a gift is made of property with a mortgage on it, SD being charged on the amount of the mortgage. The logic is that the mortgaged amount has to be paid for, one way or another, so that part is really a house purchase as opposed to a gift.
If it was a genuine outright gift there would be no SD.
I believe the stuff about mortgages only comes into play if a gift is made of property with a mortgage on it, SD being charged on the amount of the mortgage. The logic is that the mortgaged amount has to be paid for, one way or another, so that part is really a house purchase as opposed to a gift.
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