Stamp Duty on 2nd property - Refund?

JasonHappy

always_sunny wrote: »

It's not surprising, the details released are pretty vague. How much is her share worth? If it's less than £40k then maybe it won't even apply?

Unfortunately no matter what it's worth, our purchase will be a 2nd property and triggers stamp duty on the new one.

steampowered wrote: »

I understand from your post that (1) the mortgage over her mum's house is in her mum's name only, and (2) your girlfriend is a co-owner of her mum's house.

Are you sure that's correct? A mortgage lender would not usually accept a situation where only one of the co-owners is a party to the mortgage, as it is very difficult to repossess half of a property.

If it is genuinely a matter of your girlfriend transferring her interest in her property to her mother, that part should be very easy and quick. But you would face a delay if she needs to get the consent of the lender.

You're right, having double checked they are removing her from the mortgage and deeds at the same time. The mortgage provider is being a pain and demanding she receives legal advise and they won't let her waive that right, causing further delays! Solicitor is giving her 'advice' tomorrow, signing to say he has done so, just so it can progress.

booksurr

JasonHappy wrote: »

Unfortunately no matter what it's worth, our purchase will be a 2nd property and triggers stamp duty on the new one.

not necessarily, you have failed to appreciate the depth of the rules and should not dismiss the advice being given here by those who do have a more in depth understanding

there are 2 overriding conditions which determine whether the additional SDLT rate applies at all, only after those are checked do you need to get into the further details....

1) do you have a "major interest" in an existing property : Yes or No. A major interest is refers to you either being a freeholder owner or a leaseholder of a property where the lease was initially for a period of more than 7 years (ie that means those renting on AST and short leases are excluded right for the word go)

2) if you have a major interest as above, then does your share of the property to which it relates have a market value of £40,000 or more. Yes or No. If the girlfriend's share is not worth (at today's rates) at least £40,000, then she is deemed not to have an existing property and would not be liable for the additional rate.

Even today there are still properties in the UK whose market value is £80,000 or less, so it is indeed very possible for the girlfriend's 50/50 share to not meet the 40k threshold. Answer no to one or both questions and higher rate SDLT is totally inapplicable

it is all explained in the guide
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf