Stamp duty Query - Northern Ireland

bsbelfast

Hi,

I'm hoping someone can help me with this query.

I have a mortgage with my ex partner. I've not lived at the property for nearly 10 years.
The remaining mortgage value is £61,000.00.

I'm now looking at applying for my own mortgage and whilst I have the deposit, I can't get a clear answer on Stamp Duty Cost. The new property is valued at £153,000.00 and will be my main residence.

Do I pay the higher rate stamp duty?

Thanks, in advance, for any help

Pixie5740

What is unclear from the Guidance Note? I think Q18 covers your circumstances or at leasr pretty close. You will pay the additional 3% SDLT because you will start the transaction with 1 property and end the transaction with 2 properties. If the property owned with your ex is sold within 36 months of you purchasing the new property you can claim a refund for the additional 3% SDLT.

bsbelfast

Hi Pixie5740,

Thanks for the reply. I've read this and that's was my opinion.
What's confusing me is the Mortgage adviser and solicitor have both suggested that as my correspondence address and voting address is not at the property of the Mortgage with my ex then I could possibly pay the lower rate.
Also it was suggested that because my financial interest is less than 40K this could also be in my favour but it's not how I read the Guidance note.

I'd rather know and prepare rather than find out at the later stages of an application.

Pixie5740

bsbelfast wrote: »

What's confusing me is the Mortgage adviser and solicitor have both suggested that as my correspondence address and voting address is not at the property of the Mortgage with my ex then I could possibly pay the lower rate.

They're both wrong about that.

bsbelfast wrote: »

Also it was suggested that because my financial interest is less than 40K this could also be in my favour but it's not how I read the Guidance note.

That was rather an important piece of information missing from your OP. Read Section 3.7 of the guidance note.

bsbelfast

Pixie5740 wrote: »

They're both wrong about that.

I thought this also


That was rather an important piece of information missing from your OP. Read Section 3.7 of the guidance note.

Yes, Sorry. The Property is valued (market value) at £69,950.00. I'm reading section 3.7 (hopefully not biased) that I may be entitled to pay lower rate. Would you be of the same opinion?

Also to add, the first property is going on the market tomorrow at £69,950.00. I know I'll be entitled to a refund if it sells within 36 months of my second home purchase but I want to ensure I'm not relying on this to afford my second home.