Add name to deed on 2nd homes

Jenlew

Myself and my partner (not married) both own properties that we separately live in. I have a small flat (worth around £70k with no mortgage) and my partner a house (worth £170k with £120k mortgage).

We would like to add each other to the deeds. The plan is for me to move into his house in the future and we would like to share the responsibilities of both properties. Although the house would be my new main residence, I don't really want to sell my flat as I have commitments that require me to be there in the week for at least a couple of years.

How will the new stamp duty rules that came in last year effect us? If we do add each other to the deeds will we then be liable to pay stamp duty on 2nd homes for both properties for their full value or is there a way we gift each other half of the properties worth?

Jen

bowlhead99

As you own your property outright you can give half of it to whomever you like, it's a present, a nice free gift and no stamp duty involved.

However your partner's house has a mortgage on it. If you become a joint owner of that house at 50%, the total consideration for the transfer will be whatever you pay for the equity (which might be £0) plus the share of the mortgage taken on (half of £120k, which is £60k).

So, you're an owner of residential property who is 'paying' £60k to acquire a piece of another residential property without fully disposing of the first one. That sounds like a 3% (£1800) additional stamp duty under the 'new rules', would be imposed on top of the zero stamp duty for a small £60k property transaction.