Adding partner with own property to my mortgage

DavyNix

Hi All,

Have had a good look round but can't find a definitive/ clear answer to the following. Hope somebody here can help.

My partner has moved into 'my house' which I currently have a mortgage on. She too has a property which she has since rented out. Also mortgaged.

We want to extend my house but doing so will require her to be added to the mortgage to make it affordable in the eyes of the bank. Does this then mean we are subject to the new stamp duty taxes as she will effectively own two properties?

If so at which point does she have to pay the tax. I presume at the time we re-mortgage?

The total amount re-mortgaged will be 294k.

Thanks! David.

kingstreet

The solicitor handling the transfer of equity will advise on the SDLT payable, and yes, IMHO the surcharge will be payable as the number of properties she owns will increase from one to two.

The consideration will be 50% of the outstanding mortgage and that is the basis for the SDLT calculation.

DavyNix

Thanks Kingstreet. Have since discussed taking out the money for the extension from her property and in return I would transfer a percentage of the equity. Would you know if the same rules till apply or is the SDLT just based on the value of the equity?

Really appreciate the help- Thank you.