• SDLT On Transfer Of Equity Of Mortgaged BTL Property

    By Guest on 06th Feb 2020

    My wife owns an investment property but we are remortgaging and at the same time considering a Transfer of Equity whereby my wife gifts me 50% of the property for no consideration and we then have a joint mortgage. The existing mortgage on the property is £81,000 but we have funds available whereby we could reduce this to £78,000. As an investment property I believe if we remortgage at £81,000 then the consideration to me is £41,500 and £1,245 SDLT is payable (£41,500 x 3%). My question is, if we pay the mortgage down by £3,000 to £78,000 before remortgaging, the value of the consideration is just £39,000 which, being below the £40,000 threshold would result in no SDLT payable. Is this correct?

  • 1 Answers

    By NotaryExpress on 07/02/2020

    I have not double checked your SDLT calculation on an £81,000 mortgage but with regard to a £78,000 mortgage what you propose is absolutely correct. The consideration would be half of £78,000 and thus under the HMRC threshold for notification. 

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