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SDLT Additional Rate, Inherited Property, Transfer Equity
MrsPConfused
Posts: 1 Newbie
I am in the process of buying a first property to be used as my main residence. However I also own 25% share in a property inherited over 3 years ago. The current market value of the property is £200k which makes the value of my interest £50k. My sister also owns a 25% in the same property and step-father owns the remaining 50%. There is no mortgage outstanding on the property.
In order to avoid the additional 3% stamp duty rate on my new purchase, i would propose to sell 5% share of the inherited property to my sister so that she owns 30% (valued at £60k) and I own 20% (valued at £40k).
Could you confirm this would be an acceptable proposal and would this be done by means of a Transfer of Equity form TR1 or, given that there will be no change to the existing owners, would we simply need to draw up a new deed of trust showing the new share allocation?
Thanks
In order to avoid the additional 3% stamp duty rate on my new purchase, i would propose to sell 5% share of the inherited property to my sister so that she owns 30% (valued at £60k) and I own 20% (valued at £40k).
Could you confirm this would be an acceptable proposal and would this be done by means of a Transfer of Equity form TR1 or, given that there will be no change to the existing owners, would we simply need to draw up a new deed of trust showing the new share allocation?
Thanks
0
Comments
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Looking at The guidance you appear to be correct.
How you transfer the equity will depend to some extent on how your current interest is recorded.
Given that the owners will not change, I doubt TR1 is needed. Is there currently a Deed of Trust in place?
However if the Land Registry currently holds documentation specifying the equity division between owners, that will need changing. Contact the LR for advice on whether TR1 would apply.0
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