Transfer of equity confusion over stamp duty

wlondoner

Hi

Myself and my father are joint on current mortgage we want to remove him from it and have agreed no payment to him doing so. (I've paid every mortgage payment).
I'm still living in the property and will be in the future (he never has).

We have £157k equity in the property and £108k left on mortgage. So I'm guessing they see it as I've paid my father 1/2 the mortgage = £54k and £78.5k for his half of equity (even though no cash changes hands) = £132,500 as that's just over the £125k nil rate band using online calculators on that figure I would have to pay is only £150 ?

I don't see the bank for another week but they have agreed it's likely I can go ahead and remove him. But I'm worried about the potential Stamp Duty costs if above isn't correct? The gov website has confused me somewhat.

Any stamp duty experts I would be very grateful of your reply

(Not interested in CGT that's another issue lol)

wlondoner

Also I forgot to add if anyone knows the process at Nationwide for the transfer of equity that would be helpful. Do they purely do the mortgage side or do they do the land registry side also?

da_rule

The only consideration you are giving is the assumption of liability for debt (taking over the mortgage) therefore this is all the SDLT will be based on. Your calculation would be correct if you were paying him for his share of the equity AND taking on his share of the debt.

Essentially your dad is gifting you his equity in the property and you are buying him out of the remainder of his half of the property by assuming liability for the mortgage.

In terms of what the lender will do, they may sort out any changes to the Land Registry in relation to their charge only or they may insist that you appoint a solicitor from their panel to deal with all of the legals simultaneously.

wlondoner

Ok thank you very much for your response

Looks like no stamp duty to be paid in this case then