Stamp Duty and costs involved to Remortgage?

ideal_knowledge001

Hi Guys,

I have tried searching online but I am still not clear, below is my situation.


I am looking to purchase a property which is in my dad's name. I have been told remortgaging is an option. I am a first time buyer.

I have read up on remortgaging and if I am correct it means taking out a mortgage again with another lender. Can I remortgage to have the property in my name since I will purchase it from my dad?

Also I am not clear if stamp duty costs will be involved? I know solicitor costs are.

Furthermore if I purchase the property from my dad's name via the remortgage route then can I have my name as well as my sister's name on the mortgage too?

She will be helping towards the mortgage and we also can take out a bigger mortgage so it's quite important to include her in the mortgage.

Any help will be much appreciated

ACG

If you are being added to the deeds/mortgage (or a new mortgage being taken out in joint names then its very unlikely stamp duty will be due).

If you take full ownership on a sole basis or with someone else then stamp duty will be due.

If you take joint ownership with your dad, then take your dad off - stamp duty will most likely become due.

Effectively when ownership changes.

Mortgages with some lenders can include 3 people but you need to check on the lenders criteria before applying.

Might be worth speaking to a broker for this?

Thrugelmir

ideal_knowledge001 wrote: »

I am looking to purchase a property which is in my dad's name. I have been told remortgaging is an option. I am a first time buyer.

Could you spell out precisely what your plans are. Who is going to live in the property etc.

ideal_knowledge001

Thrugelmir wrote: »

Could you spell out precisely what your plans are. Who is going to live in the property etc.

Plans are sister and I purchase the property from my dad so it is in our name, we will live in the property and dad will live in another property. So at the moment property is solely owned by dad but afterwards it will be owned by my sister and I.

ideal_knowledge001

ACG wrote: »

If you are being added to the deeds/mortgage (or a new mortgage being taken out in joint names then its very unlikely stamp duty will be due).

If you take full ownership on a sole basis or with someone else then stamp duty will be due.

Ok in that case stamp duty will be due sister and I are planning to take full owner ship, do you know if we can remortgage and do this or we just buy it straight as first time buyers?

Yorkie1

"Remortgage" is something that an existing owner does so it does not apply to you at all if you buy your Dad's house from him (either alone or with your sister).

You and your sister will be getting a standard mortgage. There are FTB deals around but do not assume that they will always be the most suitable for your situation. Given your uncertainty about the process, you may find it wise to go to an independent, whole of market mortgage broker to assist.

Have you and your sister gone through all the 'what ifs'? What if one wants to sell and the other doesn't? Or move a partner in? Or you fall out?

Will your dad be selling it to you at market value or a discount? If a discount, will he need to claim means-tested benefits after the sale?

ACG

You and your sister will be looking to purchase the property. It is not a remortgage.

Stamp duty will be due in this case.

TrickyDicky101

How much is the property worth, what is the current outstanding mortgage balance (in your father's name) and for how much is he selling you the property.

Without the above, it is not possible to categorically state whether any stamp duty will need to be paid.

ideal_knowledge001

Hi Everyone thanks for all your help, ok so the douglas allen guy had no idea what he was telling me.

Looks like I will pay stamp duty which is fine just needed to make sure so I can have the funds ready.

My generous Father will gift me the property which is worth around £230k with a mortgage of £150k remaining so I will take out a mortgage worth £150k.

TrickyDicky101

Ok you will need to pay Stamp Duty but only on the o/s mortgage balance (so 1% of the £150k)

ideal_knowledge001

TrickyDicky101 wrote: »

Ok you will need to pay Stamp Duty but only on the o/s mortgage balance (so 1% of the £150k)

I have been told I have to pay on the actual market value of the property not the mortgage amount. So 1% of £230k.