Stamp Duty and costs involved to Remortgage?

TrickyDicky101

ideal_knowledge001 wrote: »

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

Then you've been told by an [STRIKE]idiot[/STRIKE] person who has it wrong. It is on the financial consideration that changes hands which in this case is the £150k. The gifted deposit element of £80k (£230k less £150k = £80k) is not liable to SD.

ideal_knowledge001

TrickyDicky101 wrote: »

Then you've been told by an [STRIKE]idiot[/STRIKE] person who has it wrong. It is on the financial consideration that changes hands which in this case is the £150k. The gifted deposit element of £80k (£230k less £150k = £80k) is not liable to SD.

Lovely I won't complain if I pay less, any ideas which website is worth looking into for this information or I can google and search online I guess, the [STRIKE]idiot[/STRIKE] person was a bank lol

TrickyDicky101

In regards to none on the gifted deposit then read this (on HMRC's website):

http://www.hmrc.gov.uk/sdlt/calculate/transfer-ownership.htm#4

ideal_knowledge001

Spoke to a mortgage broker today some very good rates 2 year fixed at only 2.44%

Morgage_Confused

Just my opinion. But I wouldent fix for two years at that rate. You can get similar rates for 5 year fixes.
You basically dont want to be re-mortgaging in two years time when the base might be heading upwards. But hey its all guesswork.

holly_hobby

Tricky is spot on with regards Stamp Duty - its based on the consideration (ie agreed pch price) in this case 150k, which will be £1500.

However, it can also be liable on a simple transfer of equity exercise (ie Dad adding you to mge/deeds), specifically where the property is mortgaged and the effective transferred value of mortgage debt, exceeds the nil rate band (exc spousal tsf) - so as you can see SDLT isn't always isolated to simple purchase situations.

If you need to use the difference between the market value and your discounted pch price from Dad as your deposit, you will need to source a lender (as not all will work on this basis) that accepts family/preferred purchase - which means that they will accept you entering the pch price as 230k (ie the market value), with a required mge of 150k - the difference of 80k* being the effective deposit. NB - the 230k pch price (aka the market value) noted on the mge application, will not affect the SDLT issues discussed above, which will remain 150k x 1 %. *assumed property values up at 230k on survey)

As also stated by the lovely Yorkie, the discounted pch price will affect any application for MT benefits Dad may make, including any state assisted long term care (if deemed it was reasonable for Dad to have know at point of sale that such applications would be later made)

My advice, given that you are unfamiliar with the house buying process and the above issues, is to seek the assistance of a whole of market broker, whom after assessing your financial status and requirements, will source the most suitable lender/productr for your needs whilst supporting you through the application process and beyond.

Hope this helps

Holly

ideal_knowledge001

My advice, given that you are unfamiliar with the house buying process and the above issues, is to seek the assistance of a whole of market broker, whom after assessing your financial status and requirements, will source the most suitable lender/productr for your needs whilst supporting you through the application process and beyond.

Hope this helps

Holly[/QUOTE]

Thanks Holly, I have got a specialist who says nationwide are willing to process my application, I have spoken to nationwide too and they said they do this type of scheme for gifting the deposit so all good :-)

ideal_knowledge001

Morgage_Confused wrote: »

Just my opinion. But I wouldent fix for two years at that rate. You can get similar rates for 5 year fixes.
You basically dont want to be re-mortgaging in two years time when the base might be heading upwards. But hey its all guesswork.

Yes I agree with you after calculating it works out better to be safe and stick to 5 years at 3.19% that's what I have been quoted so far.

amnblog

Point 1.

3.19% is not the best 5 year fixed rate available.

Point 2.

Take a 2 year rate, I would not want to be tied in for 5 years with my sister. What happens if one of you wants to move on?

Point 3.

Agree the rules under which you will sell and who gets what before you buy. Also what happens if one of you moves out later.

amnblog

Before you ask

Virgin, Abbey, and Woolwich all do lower 5 year rates than 3.19%, and so do Nationwide!