Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • baby_boomer
    • By baby_boomer 7th Oct 17, 5:26 PM
    • 3,771Posts
    • 5,383Thanks
    baby_boomer
    How quickly can ownership be exchanged
    • #1
    • 7th Oct 17, 5:26 PM
    How quickly can ownership be exchanged 7th Oct 17 at 5:26 PM
    I want to purchase a share of a property from a family member ASAP. The purpose is to stop them being liable for the extra 3% stamp duty when they [shortly] buy their first home in the south. At the moment they [unfortunately as it turns out] hold a 1/3 share of another very small northern property as a result of an inheritance and so fall foul of recent legislation. The 3% extra stamp duty I would pay on such a purchase would be far less than the 3% extra stamp duty that they would be liable for.
Page 1
    • baby_boomer
    • By baby_boomer 7th Oct 17, 5:30 PM
    • 3,771 Posts
    • 5,383 Thanks
    baby_boomer
    • #2
    • 7th Oct 17, 5:30 PM
    • #2
    • 7th Oct 17, 5:30 PM
    Should have said that I already own 1/3 of this property and have no interest in doing searches etc.
    • noh
    • By noh 7th Oct 17, 5:42 PM
    • 5,134 Posts
    • 3,452 Thanks
    noh
    • #3
    • 7th Oct 17, 5:42 PM
    • #3
    • 7th Oct 17, 5:42 PM
    Is the 1/3rd share of the "small northern property" worth more than £40000?
    • 00ec25
    • By 00ec25 7th Oct 17, 5:46 PM
    • 5,561 Posts
    • 4,963 Thanks
    00ec25
    • #4
    • 7th Oct 17, 5:46 PM
    • #4
    • 7th Oct 17, 5:46 PM
    did they inherit their share within the last 3 years?

    will the share you intend to purchase be worth more than £40k?
    • baby_boomer
    • By baby_boomer 7th Oct 17, 6:02 PM
    • 3,771 Posts
    • 5,383 Thanks
    baby_boomer
    • #5
    • 7th Oct 17, 6:02 PM
    • #5
    • 7th Oct 17, 6:02 PM
    Yes the share will be worth about £50K.
    They inherited just over 3 years ago.
    • G_M
    • By G_M 7th Oct 17, 8:02 PM
    • 42,299 Posts
    • 49,139 Thanks
    G_M
    • #6
    • 7th Oct 17, 8:02 PM
    • #6
    • 7th Oct 17, 8:02 PM
    Pay SDLT.
    Submit forms to Land Registry.
    Family member can buy new property.
    Wait for LR to register.

    https://www.gov.uk/guidance/sdlt-completing-the-paper-return

    https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1
    • SDLT Geek
    • By SDLT Geek 8th Oct 17, 9:08 AM
    • 28 Posts
    • 11 Thanks
    SDLT Geek
    • #7
    • 8th Oct 17, 9:08 AM
    • #7
    • 8th Oct 17, 9:08 AM
    Yes the share will be worth about £50K.
    They inherited just over 3 years ago.
    Originally posted by baby_boomer

    When you say "just over three years ago" are you starting from the right date? The date of the inheritance is not the date of death of the previous owner. It is when the date when the person obtains the interest in a property. This is usually by an assent or an appropriation.


    The significance is that a 1/3 share will not "count against" a person for the purposes of the 3% surcharge to stamp duty land tax for three years from the date of obtaining the interest by inheritance.
    • baby_boomer
    • By baby_boomer 9th Oct 17, 3:27 PM
    • 3,771 Posts
    • 5,383 Thanks
    baby_boomer
    • #8
    • 9th Oct 17, 3:27 PM
    • #8
    • 9th Oct 17, 3:27 PM
    Thanks for all the comments.
    The possession WILL count against my familty member who has owned it for more than 3 years.
    No-one has yet answered the question about how quickly the exchange of ownership between family members can be accomplished.
    I would be very grateful for an informed answer to this question.
    • G_M
    • By G_M 9th Oct 17, 5:22 PM
    • 42,299 Posts
    • 49,139 Thanks
    G_M
    • #9
    • 9th Oct 17, 5:22 PM
    • #9
    • 9th Oct 17, 5:22 PM
    Thanks for all the comments.
    The possession WILL count against my familty member who has owned it for more than 3 years.
    No-one has yet answered the question about how quickly the exchange of ownership between family members can be accomplished.
    I would be very grateful for an informed answer to this question.
    Originally posted by baby_boomer
    Since the gist of your question seemd to relate to the avodance of additional SDLT due to a 2nd property, my post above effectively gives the answer.

    Depends how quickly you pay the SDLT on your purchase and how quickly you submit the TR1 to the LR.

    The LR timescales are irrelevant since ownship transfers on the date on the TR1, not on the date the LR process the application.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,362Posts Today

7,277Users online

Martin's Twitter