mortgage and stamp duty

ikorodu

I have some questions on stamp duty that i hoped some one may know the answer to.

My wife owns a house outright in her name only. We plan to add my name to the register so we are joint tenants. I understand that there would be no stamp duty to pay at that point , is that right?

We then plan to raise a BTL mortgage on the property in both our names, does any one know if stamp duty would be due at that point?

amnblog

SDLT is payable if you give anything of monetary value in exchange for a share in the property.

Therefore a cash payment, or taking on a share of a mortgage would be a chargeable transaction.

A gift of a share in the property would not be chargeable.

ikorodu

Thank you for responding

if I understand you correctly, no SDLT on the change of register, but yes SDLT to pay when raising a mortgage on a house you already own outright?

TrickyDicky101

Nope - no SDLT when you take the mortgage. The property has not changed hands by you taking the mortgage.

Senior_Paper_Monitor

I think you've misread amnblog's post !!!


Neither transaction as described by OP will attract SDLT.


What amnblog is describing is that if there was a mortgage on the property at the point of the gifting transaction (Transfer of Equity) 50% of the value of the mortgage would be accrued in the calculation of SDLT liability, added to any benefit (in particular cash) transfer to the previous owner as part of the transaction.

ikorodu

You are quite right, I have misread the post.

So no stamp duty at all in our case. Thanks all for your help.