Equity transfers valuations

zzzxxx

Hiya

We are thinking of doing an equity transfer form 2 names to 1 name.

Who decides what the value of the house is?
I say this becuase the value of the house is near the government limit so could make a big difference to the total cost.

Thanks in advance

Xbigman

Hi. I just caught up with your other thread.

Who decides what the value of the house is?
I say this becuase the value of the house is near the government limit so could make a big difference to the total cost.

Thats actually a very complicated question. It depends on the reason for doing so. If for inheritence tax then the tax man has the house valued and (I think) works out the value by working back on previous years house price data.
If for equity in bankruptcy where the OR thinks he has a claim then it is valued at current prices. If for stamp duty, I don't think you pay it because you are effectively gifting half the equity to your wife rather than you selling / she buying. You should see a solicitor for an exact answer.

However. If there is no specific reason to transfer the ownership to your wife I would simply not worry about it. In your place I would be more concerned about protecting my interests in case of future divorce. A lot of men on here shudder just with the thought of the debts in their name and the house in the wifes.

To be fair there are plenty of women on here shuddering at the thought of the opposite.
Regards



X

zzzxxx

Thanks for that.

In answer to your question, it's for purposes of Stamp Duty.

So am I right in saying that stamp would not be payable as this an equity transfer.
OR is the stamp duty based on 50% of the current value of the property (subject to the stamp duty thresholds).

For example, if total current market value of house is £195,000.
Does that mean the equity transfer is subject to 1% stamp duty?
or
Is it the case that 50% would be £97,500 (minus any outstanding mortgage) which means no stamp duty is payable?

Thanks again.