Buying a second Home and Stamp Duty

mb6960

Hello

Need help on stamp duty, got a complicated situation and trying to figure out if I need to pay the extra 3% stamp duty charge, its getting very confusing

My Situation:

• Currently own a property with my Ex Parter(almost divorced), Mortgage in both our names and she Live in property
• I currenty live in a differently property with my new partner - who solely owns the property
• My new partner and myself are looking to purchase a new property jointly in our names

My question is as follows --- Would I need to pay the extra stamp duty as this will be an additional property for myself and only a new property for my new partner, The new house will my main residence so dont know if that affects it, some websites say it does but some differ.

Any help or guidance would be great, I have had a mortgage in principal accepted for the new property but getting stung this extra 3% could delay me purchasing the property.

Thanks

Marc

alex_163163

As far as I understand it, yes you would be liable for extra stamp duty if you are staying on the mortgage and house deeds with your ex once the divorce is final.
The way I've been told to look at it is:
You own one property now. At the completion of the property on the new house you will own 2 properties. Higher stamp duty rate applies.

00ec25

yes, you and the (new) partner will have to pay the higher rate on the total cost of the new property given you will jointly own it and so what applies to one person (you) applies to both purchasers

nothing complex about your situation, you own one property, you are buying an additional property without selling the one you own

guide:
https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

divorce rules:
https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property

gingercordial

You will need to either come off the deeds of the house you still own with your ex (no SDLT if done as part of the divorce financial agreement) or your new partner will have to buy the new house on her own without the benefit of your income for the mortgage.

Do you and your ex have an agreement on what is to be done with the former marital home yet? Is she buying you out? What is the agreed timescale for doing so? Remember you are financially linked as long as you have a joint mortgage with her, so getting that sorted is in your interests for more reasons than just the additional SDLT.