Remortgage with wife additional SDLT payable?

see900

Hi,
I would value some advice regarding the following scenario if possible.
My current mortgage deal on my main residence is coming to an end and I have decided to remortgage with my now wife (there will be a transfer of equity) ie mortgage changing from single to joint names. I also own another buy to let property in my name only. The outstanding mortgage stands at £175k and I have been informed that the additional 3% SDLT may be payable on half of the mortgage amount. Does this sound correct, despite not purchasing another property, simply a remortgage on my main residence? Is there a way around this eg tenants in common with unequal shares to reduce the liability? Any advice gratefully received, thanks in advance!

Wh05apk

My understanding is the stamp duty is based on the mortgage share being transferred, in this case £175k/2 so £87.5k, this is less than the stampduty threshold so no duty payable.


As your wife is not named on any other property, she will not be liable for the 3%.

Glover1862

Wh05apk wrote: »

My understanding is the stamp duty is based on the mortgage share being transferred, in this case £175k/2 so £87.5k, this is less than the stampduty threshold so no duty payable.


As your wife is not named on any other property, she will not be liable for the 3%.

Nope, because she is linked to the OP they are treated as one unit, therefore 3% on half the mortgage. You need to get your mortgage down to £80k before no sdlt applies.

see900

Thank you for you both for your responses.

It would appear that additional SDLT will be payable unfortunately. Can you advise whether then after this is paid, we move, no additional stamp duty will be payable (again)as we are changing our main residence as a single unit (despite myself retaining the existing BTL property)?

silvercar

Seems strange as you are not increasing the amount of property you own and it is your main residence. I would have thought there wouldn't be any extra SDLT to pay.

ViolaLass

Glover1862 wrote: »

Nope, because she is linked to the OP they are treated as one unit, therefore 3% on half the mortgage. You need to get your mortgage down to £80k before no sdlt applies.

Really? The wife is viewed as also owning the BTL even though it's not in her name?

That would imply that she already owns the main residence too, so no transfer of equity would be needed. However, it is so she doesn't, which would suggest she doesn't already own the BTL either.

Glover1862

ViolaLass wrote: »

Really? The wife is viewed as also owning the BTL even though it's not in her name?

That would imply that she already owns the main residence too, so no transfer of equity would be needed. However, it is so she doesn't, which would suggest she doesn't already own the BTL either.

I agree it's a joke, one minute they see you as "one unit" so additional SDLT applies if you buy another property or added to a mortgage, however, as you rightly say it implies that now you are seen as one unit then surly your wife must already own the property so no transfer of equity, you won't be surprised to know that HMRC don't agree.