Charges for making changes to a mortgage

LouisaF

Can anyone help?

My other half has recently removed his ex from the mortgage and paid the fee for the change of title and put me on instead. The mortgage is with the same company with no other changes and on an existing property. The paperwork has been sent to our solicitors and they are requesting stamp duty fees and search fees etc etc..... Is this right? We're not buying a new house?

Wh05apk

Depending on the figures, there can be a stamp duty liability, the best person to ask is the solictor acting for you to explain it.

holly_hobby

If going via an adviser they would (should) have known and explained that there this is a standard solicitor purchase form (as a pch is technically a TOE), inadvertantly sent out by the Lender under the transfer, and is where the confusion has come from.

Furthermore, there is no stamp duty land tax liability if no consideration (i.e - payment or goods) has been exchanged in respect of the allocated share - and this is regardless of the equittable value transferred between parties.

If consideration has taken place in exhange for the share, normal SDLT application bands & rates apply i.e nil rate band up to 125K consideration, and so forth.

There are also obviously no property/local search fees applicable - as the property is already mortgaged by the lender.

For the TOE to have been agreed to you (ie you going on to the mge/deeds), all status and public domain searches would have also already been conducted on you.

So the only fees for a TOE without consideration (or within nil rate band) will be your Solicitors conveyencing/LR fee, and any lender admin fee.

Hope this helps

Holly

LouisaF

Thanks Holly I thought there may have been some confusion submitted by the lender.

I will call the Solicitor and explain. Thank you. I just needed some clarification on the situation before I called them, so I have some idea what I am talking about :-)

Thrugelmir

LouisaF wrote: »

Can anyone help?

My other half has recently removed his ex from the mortgage and paid the fee for the change of title and put me on instead. The mortgage is with the same company with no other changes and on an existing property. The paperwork has been sent to our solicitors and they are requesting stamp duty fees and search fees etc etc..... Is this right? We're not buying a new house?

This a new mortgage application.

Stamp duty may well be payable. How much is the property worth?

Thrugelmir

holly_hobby wrote: »

Furthermore, there is no stamp duty land tax liability if no consideration (i.e - payment or goods) has been exchanged in respect of the allocated share - and this is regardless of the equittable value transferred between parties.

HH even mortgage funds count as consideration. Stamp duty will be based on the share of the new mortgage i.e. 50%.

Thrugelmir

holly_hobby wrote: »

Furthermore, there is no stamp duty land tax liability if no consideration (i.e - payment or goods) has been exchanged in respect of the allocated share - and this is regardless of the equittable value transferred between parties.

HH

Even mortgage funds count as consideration. Stamp duty will be based on the share of the new mortgage i.e. 50%.

T.

holly_hobby

Consideration does indeed inc exchange for monetary value which includes transferral of any mge liability/debt - hence my referral to SDLT and the 125k nil rate banding I have noted.

However, when reading back I can see that this may not have been too clear to the reader, so many thanks for clarifying T.

Holly x