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    • Richard Webster
    • By Richard Webster 29th Aug 12, 3:00 PM
    • 7,395 Posts
    • 7,112 Thanks
    Richard Webster
    ust let me run this past you and see what you think.... It is to do with the Stamp Duty and the Fees associated with the forms etc.

    Threshold is £125,000 as you know.

    From what I understand the "consideration" is worked out on the EXISTING mortgage, which today stands at around £210,500
    My Ex wants £45,000 out of the place.

    So from what I see there are 2 options...

    Option 1.
    Leave the mortgage as it is, so the consideration is £210,500/2 plus the £45,000 that I will provide to my ex. making the considertion £150,250.
    I have to pay stamp duty at 1% of that, namely £1,503, plus the £90 fee for forms, so I pay £1,593
    The approved mortgage from the new lender is £213,000, plus £750 buffer, so thats £213,750
    The new lender pays the old lender £210,500 leaving a surplus of £3250 payable to me. (to help towards the fees!)


    Option 2.
    Use the £45,000 I have, (plus a bit more) to pay off say £51,000 from the old mortgage so the outstanding on the mortgage would be £210,500 - £51,000 leaving £159,500 outstanding.
    So the consideration is then £159,500/2 plus the £45,000 that I will provide to my ex. making the considertion £124,750, i.e. below the threshold, saving me the Stamp Duty and fee of £1,593.
    The approved new mortgage is £213,000, plus £750 buffer, so thats £213,750, as before
    New lender pays old lender £159,500 leaving a surplus of £54,250 payable, £45,000 to my ex and £9,250 to me.
    The net result is it saves me £1,593, and believe me I need it!

    The old mortgage allows for lump sums to be paid off so no penalties there. Can it be as easy as that? I'm not breaking any rules, regulations or laws here am I?

    Thats if I can raise the £51,000 of course!
    I think you can do that legitimately. Just make sure your ex doesn't want a bigger lump sum once the equity in the property is larger!
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
  • Sandyness
    Stamp duty on buying freehold
    I am thinking of buying the freehold with the 2 other people in my house. We are paying 5k each for this - but i am told we need to pay stamp duty. My flat is worth £250k - surely i don't pay duty on the full value all over again? Can anyone help?
    • Richard Webster
    • By Richard Webster 12th Oct 12, 10:05 AM
    • 7,395 Posts
    • 7,112 Thanks
    Richard Webster
    Who did you buy the flat from in the first place?

    Normally if Developer Ltd granted leases some years ago to A,B & C then if X, Y & Z now own the flat leases and want to buy the freehold from Developer Ltd, or its successor as Landlord, RipOffFreeholder Ltd, then this is a separate transaction and SDLT would only be assessed on £15K which is well under the £125K threshold.

    If ABC are buying freehold from Developer Ltd then there is an argument that they are linked transactions and you have to take the original purchase prices and add on the £15K.

    However I do think even this is somewhat artificial, particularly since normally you would only expect this to be the case where ABC were connected persons, e.g. close family.

    Perhaps the safest thing to do is to put the facts to HMRC and pay nothing on the basis that you don't think anything is dure because you do not think they are linked transactions. They may come back and ask for the extra but having been upfront they cannot then ask for penalties and interest etc,
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
  • auntsally40
    Disadvantaged Relief Areas and Stamp Duty
    We bought our house in February this year. our brilliant solicitor found out that the property we bought was within a disadvantaged area. The purchase price was below £150,000 and therefore exempt from Stamp Duty. Disadvantaged Relief Areas transactions have been abolished from April 6th 2013, but if you bought a property before this date you and fulfill the criteria, you can claim Stamp Duty Relief. You have to put your claim into HMRC before May3rd 2014. We saved £1490!! check out HMRC website section on disadvantage areas.
  • Leicesteruk1989
    stamp duty question
    Hi,

    I'm a first time buyer with a LTV 70% purchasing a house that is valued at £140,000

    I have been discussing with the person who I am purchasing the property from selling the house for £124,999 to potentially avoid stamp duty etc.

    I'm looking for some advice around the implications this may have and if it's legal to do so?

    I understand that on the land registry the property will be shown as sold for £124,999 therefore would I be correct in assuming that as a result this could potentially have a knock on impact the value of other properties on the street and eventually my re-sale value in the future?

    Any advice or suggestions would be greatly appreciated

    Thanks in advance
    • marlot
    • By marlot 25th Mar 14, 2:12 PM
    • 3,136 Posts
    • 2,278 Thanks
    marlot
    Hi,

    I'm a first time buyer with a LTV 70% purchasing a house that is valued at £140,000...

    Thanks in advance
    Originally posted by mylesneal
    Normally best to start your own thread, rather than dig one up from years ago!

    Nothing to stop you buying at £125k if the seller is willing to accept that. Indeed, you can also pay extra for furniture etc you choose to buy from them (but it does need to be a fair market value).

    What you can't do is put it through as £125k then offer to pay the seller £10k or £15k on the side.
    • billshep
    • By billshep 3rd Dec 14, 6:53 PM
    • 57 Posts
    • 32 Thanks
    billshep
    If you prefer the change in stamp duty in graphical form:
    https://commons.wikimedia.org/wiki/File:StampDuty_upto_%C2%A3300k.jpg
    or for prices more people can afford:
    https://commons.wikimedia.org/wiki/File:StampDuty_upto_%C2%A3300k.jpg
    Last edited by billshep; 03-12-2014 at 6:54 PM. Reason: Link to image didn't work, then wrong links...
    • Jones578
    • By Jones578 10th Jun 15, 3:14 PM
    • 14 Posts
    • 61 Thanks
    Jones578
    I am a first time buyer and would like to take advantage of the Help to Buy Equity Loan scheme, i.e., 5% deposit, 20% loan from government and 75% loan from mortgage lender, for purchasing a new build property.

    I was hoping to extend my mortgage amount to include the stamp duty, however I was told by my mortgage broker (London & Country) that the stamp duty CANNOT be added to the mortgage if I am using the Equity Loan scheme, as the lender will only lend up to 75% of the property value.

    Is it true? I have googled about it but I could not find anything related.
    If it is the case, I may need to consider a small property or go for the second hand house market so that I can borrow stamp duty as part of the mortgage.
    Any advice will be much appreciated.
    • kingstreet
    • By kingstreet 10th Jun 15, 3:23 PM
    • 32,387 Posts
    • 17,392 Thanks
    kingstreet
    You can't add such fees to a mortgage if by doing so you will exceed the maximum loan to value.

    A 20% equity loan means a min 5% deposit and max 75% mortgage.

    A 10% equity loan means a min 5% deposit and max 85% mortgage.

    Either way, there is no scope to add stamp duty. You may be able to add a product fee, or similar but that will be about it.

    Have you considered asking the builder if it will pay your SDLT for you? If so, ensure you use a lender willing to accept such builder cash incentives.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • devilqb
    • By devilqb 14th May 16, 1:00 PM
    • 7 Posts
    • 0 Thanks
    devilqb
    Second home stamp duty query
    Hi all, I own my own flat and want to help my partner buy their own property too. We do not live together. Therefore if we were to apply for the mortgage jointly but only my partner (who does not own any other property) is solely on the property deed of the new property, is the 2nd home stamp duty still applicable? Thank-you.
    • davidmcn
    • By davidmcn 14th May 16, 1:05 PM
    • 6,275 Posts
    • 6,059 Thanks
    davidmcn
    if we were to apply for the mortgage jointly but only my partner is solely on the property deed of the new property
    Originally posted by devilqb
    This doesn't happen. Joint mortgage = joint ownership. Unless you're "helping" by something like a guarantor mortgage (in which case your involvement wouldn't be relevant for stamp duty purposes).
    • Sunshine310317
    • By Sunshine310317 31st Mar 17, 9:27 PM
    • 1 Posts
    • 0 Thanks
    Sunshine310317
    Stamp duty payment for joint mortgage with one first time buyer one already homeowner
    I am a first time buyer who has never owned a property wishing to get a joint mortgage with my partner who already owns a house but will let this out on a buy to let mortgage (will not be selling) and live in our new joint property as his main residence. As I have never owned a property would we still have to pay the higher rate of stamp duty, given that he will own two properties but will only live in one? Would we be able to claim back this after purchasing?
    • RichardDr
    • By RichardDr 1st Apr 17, 10:09 AM
    • 1 Posts
    • 0 Thanks
    RichardDr
    Hi, I am selling my house (£240k) and my mothers house (£260k)which is in my name and my sisters, the issue I have is we are buying a house for £340k and there may be an amount of time ( a month or two) before mother house is sold, can anyone advise how I stand regarding stamp duty liabilities in this situation?
    • Dai Jones
    • By Dai Jones 15th Apr 17, 1:38 PM
    • 1 Posts
    • 0 Thanks
    Dai Jones
    Hi all,

    I currently own a property which I rent out on a BTL mortgage.

    My partner and I are looking at buying a new build which is one of five properties on a small cul-de-sac. The property is yet to be build and will cost £270K.

    The builder would prefer it to be purchased through a self build mortgage so funds are released throughout the build which which obviously assist them. My knowledge of self build mortgages is limited but I don't have any immediate concerns about going down that route.

    However, I am aware I would be looking at paying 8% stamp duty as the property is worth over £250k. IF we buy the plot of land that it's going to be built on first for say £40K does that mean the "property" price will only be £230K and we a lower stamp duty?

    Many thanks for your assistance.
    • Suzie123
    • By Suzie123 18th Apr 17, 4:05 PM
    • 2 Posts
    • 0 Thanks
    Suzie123
    Hi All


    What a minefield... I had no idea the SDLT rules would be so complex. I've read all comments here, along with the article regarding married couples who each own a property and I'm still confused.


    My husband and I each own a property as we had them at the time we met. My husband's is now rented out and mine is our main residence and has been for about 5 years. If I sell the main residence and we buy a new one together, while my husband retains his property, are we liable for the increased SDLT? Or are we exempt as we are replacing the main residence? It's so confusing, so any guidance is much appreciated!
    • Suzie123
    • By Suzie123 20th Apr 17, 2:11 PM
    • 2 Posts
    • 0 Thanks
    Suzie123
    ....and the answer is... good news!!
    Thanks for pointing me in the right direction eggha.
    • Spear77
    • By Spear77 23rd Apr 17, 1:06 AM
    • 1 Posts
    • 0 Thanks
    Spear77
    Council Right to Buy - Stamp Duty on property value or discounted value?
    We are in the process of buying our housing association property under the council right to buy scheme. The property has been valued above the £125k stamp duty threshold, but the offer price to us, ie, the price we have to pay after the right to buy discount, is below the £125k threshold. Does anyone know if we have to pay stamp duty on the full value of the property or just the amount the housing association are going to charge us for it after the discount? (Because that will be zero stamp duty!) I've searched for this but very difficult to find anything. I'm sure a solicitor/conveyancer will advise but we are not at that stage in the process yet - still working out mortgage's, etc.
    • biagl
    • By biagl 8th May 17, 3:57 PM
    • 1 Posts
    • 0 Thanks
    biagl
    Hi All


    What a minefield... I had no idea the SDLT rules would be so complex. I've read all comments here, along with the article regarding married couples who each own a property and I'm still confused.


    My husband and I each own a property as we had them at the time we met. My husband's is now rented out and mine is our main residence and has been for about 5 years. If I sell the main residence and we buy a new one together, while my husband retains his property, are we liable for the increased SDLT? Or are we exempt as we are replacing the main residence? It's so confusing, so any guidance is much appreciated!
    Originally posted by Suzie123

    Hi


    Did you get a response to this? My husband and I are in the same situation so will be interested to know the answer.


    thanks


    • 00ec25
    • By 00ec25 8th May 17, 4:44 PM
    • 5,564 Posts
    • 4,968 Thanks
    00ec25
    Hi


    Did you get a response to this? My husband and I are in the same situation so will be interested to know the answer.


    thanks


    Originally posted by biagl
    para 3.42 - 3.47 page 14 & 15
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf
    Last edited by 00ec25; 08-05-2017 at 4:49 PM.
    • Blackadder01
    • By Blackadder01 11th Jun 17, 10:34 AM
    • 1 Posts
    • 0 Thanks
    Blackadder01
    Hello I am a first time buyer, and I'm purchasing a shared owenership for 130.000 which is 50 percent. My solicitor has sent me a quote for the full value of stamp duty for 260,000. Am I right in saying that I won't have the pay the full 3,000 duty as I'm only buying half of the property?
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