Higher rate stamp duty

Capricorn43

Thank you all for your suggestions and comments.

So, looks like we need to try to remove my fiance's name from the deeds. From other forums it appears this should be quite straightforward.

Failing that, the new home purchase will need to be in my sole name. Not fair on my fianc! BUT if it saves us £11k it looks like it may be the alternative option.

Unfortunately,we think the consent order did not contain any triggers to remove his name i.e. Another man moving into the ex marital home. Just that she would use reasonable endeavours. Hmmm.

sheramber

Will you get a mortgage on your salary alone? Lender would probably require fiance on the deeds if it was a joint loan.

AnotherJoe

booksurr wrote: »

BUT, remaining on the ex wife's property whilst purchasing a major interest in the new property would mean he was going from 1 property + minor interest in current main home to a new scenario of 1 property + additional (major interest) property, so triggering the higher rate irrespective of it being a replacement main home. OP would therefore also be liable for the higher rate since they would be joint purchasers so the higher rate applies to both if one of them triggers it

I'm suggesting they are done separately, £35k portion first.

Are you sure regards the minor interest part? Is that in the guidance? The flowchart mentions replacing main residence, which he would be.

booksurr

AnotherJoe wrote: »

I'm suggesting they are done separately, £35k portion first.

Are you sure regards the minor interest part? Is that in the guidance? The flowchart mentions replacing main residence, which he would be.

What do you mean by "doing separately"?

At the end of the day they are a couple, they will live in the same house and they would therefore fall under the linked transaction rule for SDLT

Hystar

After some advice, I'm just about to purchase a new house and just been informed of the higher rate stamp duty, was a £10k shock!! I do have another house with my ex wife which I haven't lived in for over 3 years. As part of my divorce I only have a 30% share of the house which currently is worth £35k so under the £40k. Do I still have to pay the higher rate as I'm still on the mortgage of can I use the fact I only own 30% of the house? Must say this higher rate of stamp duty is something I'm really struggling to get my head around, especially as it seems to have been implemented for buy to let but is hitting anyone with a 2nd home no matter the circumstances!!

anselld

Hystar wrote: »

Must say this higher rate of stamp duty is something I'm really struggling to get my head around, especially as it seems to have been implemented for buy to let but is hitting anyone with a 2nd home no matter the circumstances!!

That is because it was intended for those buying a second home for any reason. It was never anything to do with BTL.

AdrianC

Hystar wrote: »

After some advice, I'm just about to purchase a new house and just been informed of the higher rate stamp duty, was a £10k shock!! I do have another house with my ex wife which I haven't lived in for over 3 years. As part of my divorce I only have a 30% share of the house which currently is worth £35k so under the £40k. Do I still have to pay the higher rate as I'm still on the mortgage of can I use the fact I only own 30% of the house? Must say this higher rate of stamp duty is something I'm really struggling to get my head around, especially as it seems to have been implemented for buy to let but is hitting anyone with a 2nd home no matter the circumstances!!

What does your solicitor say...?

Or just go straight to the horse's mouth, and ask HMRC...
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

p7, Condition C.

Capricorn43

Hystar ... My fianc! has handed over the whole house and will not be getting a penny. But apparently is still liable to pay the higher rate SDT as his name remains on the deeds and land registry.

Having spoken to his divorce solicitor today, the solicitor will be firing off a letter to the mortgage provider to request mortgage details and will be setting the wheels in motion to remove his name from the deeds and land registry. Thereby hopefully releasing him from having to pay the hire rate. The government clearly didn't think about the hundreds of thousands of divorced people out there, tied to mortgages with their exes (even when they are not seeking a share of the equity) and wanting to move on with their lives.

Capricorn43

Sheramber .... We will be in the fortunate position of not needing a mortgage. I bought my home 20 years ago and my fianc! has recently inherited.

Bluebirdman_of_Alcathays

Capricorn43 wrote: »

Hystar ... My fianc! has handed over the whole house and will not be getting a penny. But apparently is still liable to pay the higher rate SDT as his name remains on the deeds and land registry.

Having spoken to his divorce solicitor today, the solicitor will be firing off a letter to the mortgage provider to request mortgage details and will be setting the wheels in motion to remove his name from the deeds and land registry. Thereby hopefully releasing him from having to pay the hire rate. The government clearly didn't think about the hundreds of thousands of divorced people out there, tied to mortgages with their exes (even when they are not seeking a share of the equity) and wanting to move on with their lives.

Then surely they should dispose of the (in most cases) 6 figure asset they own?!