Stamp duty when adding FTB on remortgage

BakingC

Background my now fiance bought a flat in 2017 as a ftb (unfortunately before they abolished stamp duty for FTB) on a 2 year fix and we both moved in to the flat.

Now we are around a year from the end of the fix and discussing remortgage possibilities. I still have FTB status.

If I was to be added to the mortgage / deeds on remortgage would stamp duty be payable for my part?

Purchase £328000
Estimated mortgage left on remortgage £278000
85% LTV.

I read that you can only claim FTB exemption if all applicants are FTB but would I need to pay it on the full £278k or would it only be half as we would have equal shares.

Just trying to weigh up fees for adding me to the mortgage Vs not depending on if existing provider would just allow new fix without new valuation and checks.

harrys_dad

You pay stamp duty on purchase, not when you change the finance. Are you suggesting your fiancee sells you half of the flat? How do you organise your finances? You might have a beneficial interest already. I am sure there are wider issues than trying to avoid paying some tax which others here may know more about.

BakingC

Thanks for the reply.

From my reading I thought adding me when remortgaging would count as a transfer in equity with my interest being half of the new mortgage to pay off the old one and as such stamp duty may be applicable. Or maybe I misunderstood.

In terms of day to day finances I pay rent set at an amount which happens to equal half mortgage and service charge then we split all bills. In terms on maintenance I have paid nothing towards the refurbishment done as I am doing most of the saving for wedding / honeymoon so I would not say I have an inherent interest in the property from money put in although I guess that would automatically change when we are married

Think it might be a more complex situation than I anticipated so will probably be worth picking the brains of a solicitor.

sheramber

______________________________________________
Stamp Duty Land Tax: Relief for first time buyers
___________________________________________
Guidance Note
22 November 2017



The third condition: The purchaser or purchasers are first time buyers intending to
occupy the dwelling as a main residence
Only
purchasers who are individuals
are entitled to claim relief. If there is a purchaser
who
is a company then no relief is available.
All the purchasers must be first time buyers. See Chapter 3 for the meaning of first time
buyer. If there are any purchasers who are not first time buyers then no relief is available.

SDLT_Geek

There are a number of steps to getting to an answer here:

(a) Who presently beneficially owns the property?
From what you say it sounds as if it might be your fiance as to 100%.

(b) What share in the property are you to acquire?
You do not say, so I will take a guess and say 50%.

(c) What is the "chargeable consideration" for SDLT?
You do not say if anything is being paid. So I will assume the chargeable consideration is half of the debt, so £139,000.

(d) Who is the purchaser?
The "purchaser" is the person who acquires the interest. I would say it is just you. HMRC say it is both of you. So perhaps you would want to document it clearly to show an assignment of a share in the property from your fiance to you.

If you alone are indeed the "purchaser" then first time buyers relief should be available.