Equity buy out of ex-partner and stamp duty

JustTakeAllMyMoney

Hi,

I own a property with my now ex (we were not married), I want to buy her out we have agreed I will pay her £15k to do this.

My question is will I need to pay the stamp duty again on what the house is valued at or just on what I pay to the ex in this case £15k ? I've heard two different things.

Thanks

silvercar

You are buying from your ex, half the mortgage value and the 15k. If this totals more than the stamp duty threshold then you pay stamp duty on that part, if not you don't.

JustTakeAllMyMoney

silvercar wrote: »

You are buying from your ex, half the mortgage value and the 15k. If this totals more than the stamp duty threshold then you pay stamp duty on that part, if not you don't.

Thanks silvercar

So the current outstanding balance on the mortgage is £260k, we have a tennants in common agreement that means 60% of that is mine and 40% is hers, so 40% of £260k is £104k plus £15k = £119k so I'm under the stamp duty threashold so nothing to pay, is that how it works ?

A read somewhere they make a distinction between married and non-married couples in relation to how they apply the stamp duty on buyout, we were not married.

densol_2

Even in the worst case scenario ( mortgage debt is 260k and shared 50/50 as jointly and severally liable) you would still only pay off £130k for her debt plus the £15k of the equity - thus £145k.

As the rate is currently £175k then no stamp duty to pay. The distinction for married couples is no SD when settling property between spouses as a result of divorce settlement whatever the value.

I had to pay SD of £2000 when I bought out my ex - having already paid at 3% when we bought the house! I was really annoyed because I already paid out once to the Government!!

Best of luck :rotfl:

PS Of course you need the Mortgage Company to agree to release your ex and let you take on the whole mortgage yourself.

Ilian2008

Hello. I think the bit about being married is that a transfer of property pursuant to divorce is exempt from stamp duty. That might not still be the case but it was many years ago