Stamp duty due to take partners name off deeds?

Christabel

My son and his partner are splitting up and the house and mortgage are in joint names. If he buys her out do they still have to pay stamp duty on just taking her name off things? He thinks he does and that it will be a lot of money. Advice needed please.

Grenage

I did not need to pay stamp duty when I was in this situation.

Christabel

Thanks. I'll see what others say

Tom99

Yes he will, based on what he pays his ex plus 50% of the mortgage.

Christabel

Oh dear, bad news then. Thanks.

00ec25

Christabel wrote: »

My son and his partner are splitting up a

married or not?


married: no SDLT if now divorcing and getting a court order to end the marriage

unmarried or simply separating before divorce : yes SDLT due at standard rate

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

Grenage

My apologies; I missed the section about being bought out. In my case no funds changed hands, we simply removed her from the mortgage and title.

saajan_12

Christabel wrote: »

My son and his partner are splitting up and the house and mortgage are in joint names. If he buys her out do they still have to pay stamp duty on just taking her name off things? He thinks he does and that it will be a lot of money. Advice needed please.

Currently they have joint liability for a mortgage, so son will be taking on partner's 50% liability as well - effectively paying £x to partner in the form of mortgage liability changing hands.

Also, will son be paying partner money for her share of the equity? call that £y.

So Son is buying 50% of the house for £x+y and he will have to pay stamp duty at standard rate for that, assuming it is and remains his only & main home.

Christabel

Thank you all for your help. It sounds like an expensive do to me, poor thing.

00ec25

Grenage wrote: »

My apologies; I missed the section about being bought out. In my case no funds changed hands, we simply removed her from the mortgage and title.

then either you still don't understand the rules or the values involved in your case were below the SDLT threshold because movement of funds is one relevant factor, mortgage is the other.

the value of the outstanding mortgage is "chargeable consideration" and would be subject to SDLT based on the threshold and respective mortgage share even if no funds moved between parties

getmore4less

how much is the house worth standard SDLT does not kick in till £125k.

Even on a £500k house shared 50:50 buying out £250k worth the bill would only be up to £2,500.