Swapping houses with my Mum in law?

Darren__2

My Mother in law owns a property and the short story is we are going to swap homes.
The value is identical, and in fact we are not exchanging any funds.

I know I will pay 'Stamp Duty' at what is deemed market rate, but there must be a way of swapping without full conveyancing?

The other details of note is that I do have a mortgage [in my name only] approx 50% of market value, which would need 'porting' to hers. She does not have a mortgage.

Currently it seems we will both be doing full conveyancing which considering we know both properties very well, seems daft. I'm not out to defraud the HMRC, but what stings is the additional £1600 fees to swap...

I cannot seem to get any unbiased / independent advice so I posted here...:D

thanks

Fire_Fox

Welcome! Your lender should insist much of the regular conveyancing is done by a professional. Have you asked a few conveyancers to quote for a swap and explain what can and cannot be waived? You may be able to use different members of the team within the same practice which may get you a good deal. You might know the property but don't assume you know what the local authority is up to, we don't even get notified here of planning applications unless it is the building next door, we didn't even get informed when they completely changed the traffic flow on my road! :eek:

Darren__2

we have had a few quotes - all around £3700 inc Stampduty and VAT. It just seems ridiculous - if it wasn't for the fact that longer term it is a good move for us [more space] it would put me off.

I believe we could both add each other to our deeds, and then echange equity? basically then take each other off the appropriate property, this has gift implications I guess as I am married to her daughter, and we'd still be liable to 'stamp duty' at the appropriate amount.
One question that hasn't really been answered is how the HMRC calculates stamp duty, I don't mind paying it [as there is no way to avoid it!] but I don't see why I should pay over the odds....

we have a single estate agent value both at X [same amount] suggesting a market at £5k higher. The issue for me is that we are still in a recession so I might only get 1 offer and that is say £10k less that the marketed price.
As we are 'nominating' in essence a selling/buying price can we not just nominate a lower price that would be seen as slightly below market value ie for a quick sale?
It will only save £100-£200 but that is a saving none the less???

Fire_Fox

There is nothing ridiculous about it, there is an incredible amount of work in conveyancing and a great deal of professional knowledge required. You are contributing to both their time and their overheads, as with any business, you may find online conveyancers cheaper. Property is by far the largest purchase of your life, it's not something to do with a laissez faire, corner cutting attitude.

You cannot just add someone to the deeds without your lender agreeing, and if anyone needs to claim benefits or state care in the next few years you can create a nightmare where it could look like a deprivation of assets situation. Get several estate agents valuations specifying a quick sale not what to market at, your lender will probably want you to pay for their surveyor's valuation anyway.

There are legal ways of reducing the price slightly and stamp duty liability slightly such as paying for fixtures and fittings. HOWEVER get this wrong and it is classed as tax evasion which is a serious offence. Limiting stamp duty legally is one of the many things you pay a conveyancer to advise you on, they have no vested interest in making you pay more than you have to! http://www.hmrc.gov.uk/sdlt/index.htm

Darren__2

I was being a little tongue in cheek - it just irritates me that everyone is feeling the pinch so everyone is putting their prices up and exacerbating the problem.
You used to be able to exchange and only pay the liability on the difference!
Actually you are correct as the fees have almost put me off, which is what most must be thinking - couple that with the cliff edge duty and we wonder why the housing market isn't bouyant

I'll pay it I have no choice - actually I'll probably have to add it to the mortgage...

thanks

kingstreet

The other details of note is that I do have a mortgage [in my name only] approx 50% of market value, which would need 'porting' to hers.

When you sell your current home, your mortgage is repaid.

You need to apply for a new mortgage, subject to status and valuation when you move. You cannot transfer a mortgage from one property to another. Provided you qualify for the new mortgage, the lender may allow you to transfer the rate from your old mortgage to your new one. That is what is known as "porting."

Talk to your lender about this before you take the matter too far, just in case there are any issues which need addressing.