• Paying Stamp Duty

    By Guest on 23rd Jan 2018

    Can someone help me please before I go mad. My daughter has split up from her boyfriend. She can not afford to pay the mortgage herself as the lender does not think she earns enough however she realises just how hard it would be to get back onto the property ladder should they sell the property and wishes to keep it. I completed an affordability assessment with the lender to see if I could go onto the existing mortgage with her until she can afford to take it over herself. The lender agreed I could do this but the length of the loan would have to be reduced from 27yrs to 20yrs because of my age and the payments would go up £135 a month. I agreed this as the existing loan of a fixed term would end in April 2019 and she would then be financially able to take over the mortgage herself. She has paid £150 to the lender to remove him of the mortgage and for me to go on and the title of deed has been sent to his solicitors to remove him from it. However her solicitor is saying I will become a legal owner of the property and will have to go onto the title of deed and therefore because I already own a property I will be subject to 3% charges of stamp duty something I was not aware of. The thing I cant understand we negotiated a rate to pay her partner off of £20,000 and I had to sign a document for the bank to say I was gifting this to her and had no financial interest in the property? Therefore I don't understand how I can be liable for stamp duty if the lender is treating me as having no financial gain from the property? I thought I was just entering onto the mortgage and the title of deed would be in her name now her ex has been removed?

  • 1 Answers

    By Guest on 09/02/2018

    The short answer is additional rate of Stamp Duty Land Tax is totally separate to any arrangement you have made with the lender or your daughter in respect of the £20,000. By going on the mortgage you also need to go on the title deeds and therefore become an owner triggering the requirement to pay the additional SDLT.

    It may be worth discussing with the lender being a guarantor and therefore not going on the mortgage, title deeds or triggering the additional SDLT.

    PWP Services Ltd

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