Question I need answering, dohh!

Conrad

So I want to pin down what stamp duty would be payable in the following circumstances as different lawyers are giving conflicting info and the lender cannot answer either;

• Daughter lives in house Mum bought for her using a buy to let mortgage as at the time Daughter could not get a mortgage. Mum lives elsewhere.
• Value £320,000
• Mum physically wants £200,000 to sell the place
• Conscesionary purchase using Halifax so no, or minimal deposit will change hands
• Product is based on the lower loan to value

What is the stamp duty payable?:o:o

Dave_Ham

Someone else using your sign in from your office?

£320k - definitely

Sorry not better news for your client.

Bet mine shows as edited

Wh05apk

Dave_Ham wrote: »

Someone else using your sign in from your office?

£400k - definitely

Sorry not better news for your client.

Where does £400k come from?

Surely the property is effectively being sold for £320k with a gifted deposit of £120k, £320k will be declared to land registry, therefore it will be based on £320k?

Dave_Ham

Wh05apk wrote: »

Where does £400k come from?

Surely the property is effectively being sold for £320k with a gifted deposit of £120k, £320k will be declared to land registry, therefore it will be based on £320k?

Either the post has been edited (as does not now show £400k) or I am going completely mad

I am guessing the former, given the big gap although it does not show this.

With the revised amount - £320k definitely.

harvey115

Is transfer of Equity not possible in this case?

So the daughter takes the mortgage on her name on residential basis and avoid the stamp duty.

Thrugelmir

Value for CGT is also £320k. Not the amount the property is sold for.

JPB123

harvey115 wrote: »

Is transfer of Equity not possible in this case?

So the daughter takes the mortgage on her name on residential basis and avoid the stamp duty.

It would only work as a Transfer of Equity if the mother stays on the mortgage. If it just goes into the daughter's name it would be classed as a purchase.

Any acquistion of interest over the SDLT threshold would also trigger a charge for Stamp Duty.

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