Transfer of equity/change of ownership

zoja

Hi

I'm currently in the process of re mortgaging but want to take the new mortgage solely on my own, my ex hubby is still on my current mortgage but he's agreed to come off and transfer the equity to me (we have a private arrangement) we have been divorced for 2 yrs and are tennents in common at present. After searching the web i've come across the issue of stamp duty etc and was wondering how much this is all likely to cost and i'm looking for the cheapest option. I think i'm going to need a solicitor???
Many thanks!

themull1

I paid my husband off our joint mortgage and took on the mortgage myself, it cost £150 to the mortgage bank, and £585 solicitors fees. I had to pay for insolvency indemnity insurance in with the solicitors fees, and that was £125.00. I didn't pay stamp duty. House worth about £135000

CLAPTON

what is the value of the property?

zoja

The value is about £145000

claretmatt

If you are remortgaging then you will need the services of a solicitor to transfer the mortgage. It would be worth asking them the cost of completing a transfer of equity,

Re stamp duty HMRC rules state

Transferring property on divorce, separation or the end of a civil partnership

SDLT isn't payable if an interest in land or property is transferred to one or other of the couple as part of an agreement or court order because they're:

• going through divorce proceedings
• taking action to dissolve a civil partnership

This also applies if the partners agree to either:

• the annulment of their marriage
• a legal separation

In these cases there's no need to notify HMRC of the transfer, even if the value is more than the SDLT threshold.
The position for SDLT is different if joint owners are unmarried and not in a civil partnership when they transfer an interest in land or property from one joint owner to another. In these cases SDLT may be payable.