Annoyed - Stamp duty on transfer to hubby, NRAM ERC waiver dilemma.

densol_2

Here is the problem.

I was casually looking at remortages for October 2011 and then came across the post with the NRAM ERC waiver.

We have a house valued at £420,000 - £450,000 with £310,000 outstanding on the mortgage with NRAM.

I earn £68,005 with the civil service and hubby £44,000 with company he has worked in for 30 years. Credit cards all paid off a couple of years ago, so excellent credit records each.

The house and mortgage are just in my name. If we wanted to leave NRAM now with the ERC waiver and pick up a full status deal its a bit tight on my salary alone and would limit us to a handfull of mortgage deals. However with Hubbys salary its not a problem at all.

BUT - because I would need to transfer half of the property into his name to get a joint mortgage we would have to pay stamp duty on half the mortgage as that would be classed as the consideration !!! ( Apparently according to the Inland Revenue website) which at £1550 for a property I already own it makes me mad :mad:

Anyone come across this before ? Anyone know if there are proper exceptions that can be applied ?

Thanks

magpiecottage

Stamp duty is based on the purchase price, not the amount of the loan so it should only be payable if you actually sold the property to him.

You might want to speak to a mortgage broker though.

Wh05apk

Densol, you are correct, this is an often forgotten about tax (until the solictor asks you for funds) link to HMRC : http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm

Given your income, I would suggest trying to keep things in your name, but check with a solictor, how best to protect your hubby.

noh

magpiecottage wrote: »

Stamp duty is based on the purchase price, not the amount of the loan so it should only be payable if you actually sold the property to him.

You might want to speak to a mortgage broker though.

No.
SDLT is based on the consideration.
Taking over half of the mortgage amount is a consideration of that amount therefore SDLT is payable.