Stamp duty

Jayh

Thanks for the reply.

I was signed off from mortgage and that was agreed with and completed by bank - so my value of interest in property that myself and ex wife consider will be zero.

Jayh

House is valued at approx £230,000 , mortgage payable is approx £105,000 + equity loan of £50,000

When we seperated we agreed that house would be signed of to ex wife and I would give up share of property to make it easier for her and kids to stay in house.

AnotherJoe

Though I take your point about having an interest worth zero, you could still have a tussle with HMRC, and you should have been taken off as anyway, and the mortgage co would surely have made that a condition? Someone didn't do a proper job here.

Also if you and your ex were joint tenants then i think officially the house would be yours were she to be run over by a bus tomorrow.

Get it fixed for benefit of all.

Jayh

That was my thinking as well. Who decides how much of the property is mine percentage wise? We could say it is 1% ?

Pixie5740

Is it a shared ownership property or a property bought with HTB Equity Loan or both?

Jayh

It was shared ownership. Originally purchased with Places for people , sale price was £165,000 we had mortgage for £115,000 the remainder was a interest free loan for 5 years. Hope that helps.

Jayh

If I meet the criteria in point 2 would that also mean not paying the extra stamp duty as well?

saajan_12

Jayh wrote: »

If I meet the criteria in point 2 would that also mean not paying the extra stamp duty as well?

In this case you would pay the higher SDLT when you purchase the new place, and then get a refund of the 3% if / when you 'dispose of' (i.e. fully remove your name from) the old property if you meet all the conditions.

Jayh

ok , thank you. I am more leaning towards point one :

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

00ec25

Jayh wrote: »

That was my thinking as well. Who decides how much of the property is mine percentage wise? We could say it is 1% ?

that will be a matter of fact

a) if you own the property as Joint Tenants with your (ex) wife then the law says you both own 100% each of the property and if one of you dies the other is already the owner of the property

b) if you own as Tenants In Common then there should be a Declaration of Trust or other documented evidence to show exactly what the split is between you and the ex. If there is no such DoT then the default is 50/50

you remain on the deeds, therefore you cannot be anything other than a) or b) above as those are the only 2 ways to record ownership. If you don't know which you are then you will need to read your deeds