Stamp duty

Jayh

Hello,

I'm in a bit of tricky situation and need advice please.

I moved out of the family home approx 2 years ago and cam off the mortgage there about 18 months ago . My wife and I were divorced in Jan of this year.

I am still on the title deed to the house as it was shared ownership scheme.

I am in the process of buying a new home with my new partner. Price is approx £240,000

Question.
Will I have to pay stamp duty at higher rate as still on title deed ? I have chased matter up today and am being told matter could be resolved in 2-4 weeks. New property would be at 8-10 weeks before we move jn still.

Thanks

AnotherJoe

Jayh wrote: »

Question.
Will I have to pay stamp duty at higher rate as still on title deed ? I have chased matter up today and am being told matter could be resolved in 2-4 weeks. New property would be at 8-10 weeks before we move jn still.

Thanks

AFAIK you will since you'll then be registered as owning two properties, so get off the title deed or you will indeed need to pay unless you are below the £40k limit on the old house?

Jayh

Thanks for the reply. When I agreed to come off mortgage 18 months ago we agreed that ex wife would be the owner of the house and I would have no share / interest in the property so I was working on the basis that I am under £40,000

Would that be correct? Mortgage is completly in ex wife name now with relevant bank, I was released from mortage and signed forms to confirm.

csgohan4

Jayh wrote: »

Thanks for the reply. When I agreed to come off mortgage 18 months ago we agreed that ex wife would be the owner of the house and I would have no share / interest in the property so I was working on the basis that I am under £40,000

Would that be correct? Mortgage is completly in ex wife name now with relevant bank, I was released from mortage and signed forms to confirm.

your still on the title/deeds, better get this sorted out asap

Pixie5740

You don't just "come off" a mortgage. Your ex would need to have applied for a mortgage in her own name. I would be surprised if the mortgage lender allowed you to remain on the deeds when you are not party to the mortgage. Same with the HA that owns the rest of your leasehold.

Jayh

I am trying to arrange asap. Any thoughts on me being under the £ 40,000 mark ?

Jayh

Yes, she applied for her own mortage which RBS agreed to and I then went to solicitors , signed the paperwork and was advised that I had been released from the mortgage.

Pixie5740

Jayh wrote: »

Yes, she applied for her own mortage which RBS agreed to and I then went to solicitors , signed the paperwork and was advised that I had been released from the mortgage.

Then you should no longer be on the deeds. How do you know, or why do you suspect, you are still named on the deeds?

Pixie5740

Jayh wrote: »

I am trying to arrange asap. Any thoughts on me being under the £ 40,000 mark ?

Impossible to say since you've not given us any figures relating to the shared ownership property.

saajan_12

I see there are two arguments here:

1) Current beneficial interest in old property is 0% which is less than 40k (depends on how your 'share' in a property is defined) -> Higher SDLT not payable

2) If name is removed from the old place within 3 years of your new purchase then this could be considered replacing your main residence, as
(a) the old place was your main residence before the separation, within 3 years of the new purchase
(b) the new place becomes your main residence
(c) the old place was disposed of by transferring under a divorce

You'd need to clarify if either of these apply with a solicitor as they can advise on the exact definition and timing of your 'disposal' of the old place and your 'share' in it.

Jayh

Thanks for the reply. As it is shared ownership scheme two other companies need to agree to change the deed which we are in process of sorting, solicitor dealing with matter is beyond useless.... very slow and never reply.