• Transfer Of Equity

    By Guest on 21st Jun 2016

    Hi I wonder if you can help. I bought a house 5 years ago and in order to get the mortgage my step son went on the mortgage too. The solicitor at the time allocated him 1/2% share in the house. I want to remortgage the house and my step son wants to come off the mortgage. No monies are changing hands, he purely came on the mortgage to help me get a mortgage. Will I be liable for stamp duty.

  • 1 Answers

    By Guest on 26/06/2016

    You could potentially be liable for stamp duty. This will depend on the "consideration" for the transfer. In your case this will be half the debt owing on the current mortgage. There are two possible scenarios:

    1. You do not own any other properties. If this is the case then provided the consideration is less than £125,000 there will be no duty to pay as you will be liable for duty at 0%.

    2. You own at least one other property. You will be subject to the new Higher Rate. This means you will pay duty equal to any you would pay at the normal rate plus 3% of the consideration. For example if the consideration is £150,000 you would pay £500 (normal rate) plus £4,500 (higher rate) so £5,000 in total. If the consideration is £100,000 you would pay £0 at lower rate and £3,000 at higher rate. If the consideration is less than £40,000 however you will not be liable for any duty

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