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Stamp duty, 2 owners
nb0825
Posts: 115 Forumite
Was wondering what the stamp duty cost would be for a flat that is £160,000 that is a second home but not for my partner. I would only own 25% of the second home and have never lived in the home that I currently own.
- I currently own half of my mum's house with a mortgage that I'm paying
- I've never lived in my mum's house and have been renting for several years
- I'm paying for the second home with a £40,000 and no mortgage
- My partner is a first-time buyer and would pay the remainder of the flat value (£120,000) with a mortgage (We would be joint tenants in common, I own 25%, she owns 75%).
many thanks
- I currently own half of my mum's house with a mortgage that I'm paying
- I've never lived in my mum's house and have been renting for several years
- I'm paying for the second home with a £40,000 and no mortgage
- My partner is a first-time buyer and would pay the remainder of the flat value (£120,000) with a mortgage (We would be joint tenants in common, I own 25%, she owns 75%).
many thanks
0
Comments
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Have you read HMRC's guidance document?
How much is your share of your mum's house worth?
How is your gf managing to get a mortgage for just part of a property?0 -
Have you read HMRC's guidance document?
How much is your share of your mum's house worth?
How is your gf managing to get a mortgage for just part of a property?
I own 50% of my mum's house and currently pay a mortgage
I would give my girlfriend £40,000 for the deposit and she would pay the mortgage of £120,000. We would then get a legal agreement to say that I own 25% and she owns 75%0 -
How much is your share of your mum's house worth?0
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I own 50% of my mum's house and currently pay a mortgage
That's not what I asked. I asked how much it was worth not for the % share.
You also never answered my question about reading HMRC's guidance note.I would give my girlfriend £40,000 for the deposit and she would pay the mortgage of £120,000. We would then get a legal agreement to say that I own 25% and she owns 75%
Hmmm, have you found a mortgage lender willing to accept this set up?0 -
Presumably this will be a joint mortgage.I would give my girlfriend £40,000 for the deposit and she would pay the mortgage of £120,000. We would then get a legal agreement to say that I own 25% and she owns 75%
The fact that the repayments will come out of the girlfriend's account / from the girlfriends wages, etc is only of relevance to the OP and their girlfriend. It's not of relevance to the mortgage company or to any stamp duty calculations.0 -
That's not what I asked. I asked how much it was worth not for the % share.
You also never answered my question about reading HMRC's guidance note.
Hmmm, have you found a mortgage lender willing to accept this set up?
The value is £70,000
Yes, I had a quick read but it wasn't clear whether both owners would pay the higher stamp duty or just me0 -
That's not what I asked. I asked how much it was worth not for the % share.
You also never answered my question about reading HMRC's guidance note.
Hmmm, have you found a mortgage lender willing to accept this set up?
I don't believe this will be a problem. I can't get another mortgage because I currently have one. Hence, I'm "giving" my girlfriend £40,000 but I am a named owner of the title deed.0 -
As far as I am aware, everyone who owns the house must be on the mortgage.0
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Really? The lender will want whoever is on the deeds to be on the mortgage. There may be specialist (read, expensive) options to finance this, but AFAIK no mainstream lender will do this.I don't believe this will be a problem. I can't get another mortgage because I currently have one. Hence, I'm "giving" my girlfriend £40,000 but I am a named owner of the title deed.
Certainly this firm of solicitors doesn't think so.
http://www.hegarty.co.uk/hegarty_buying_property_together.html0 -
The value is £70,000
The value of the property, or the value of your share?
If it's the latter, then the 3% SDLT is due.
If it's the former, and your 50% share is worth £35k, then the 3% SDLT is not due.Yes, I had a quick read but it wasn't clear whether both owners would pay the higher stamp duty or just me
SDLT is only paid once. If one or more joint owner qualifies for the 3%, then the 3% is due.
So a £160k property would attract £5,500 SDLT including the 3%. Without the 3%, it would be £700.
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax0
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