• Is Stamp Duty Payable On An Inherited Property With A Mortgage

    By Guest on 06th Apr 2018

    Last year, my siblings and I inherited our family home in London worth £575,000 with a current mortgage of £200,000. As the executors and beneficiary of the estate, we were provided with the option to
    1. complete a transfer of borrowing with the lender (as there won’t be any stamp duty) – none of us have ever purchased/owned a property
    2. complete a new mortgage application as first time buyers.


    If we decided to go with the second option, it was our understanding that we either won’t have to pay stamp duty because we’ve inherited a mortgage, OR we would only need to pay 2% because we are only buying £200,000 worth that’s the current mortgage on it and the gift element is deducted.

    Is this correct? I tried to ask HMRC but they’ve just directed me to the .gov website which doesn’t cover this scenario. I’d appreciate it if you could share your opinion on this.

    Many thanks

    E

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