2nd home SDLT remortgage after marriage

eddster

Hi All,


Apologies if this has been covered previously, I have read the various Gov info links that have been copied into previous posts but I am still not entirely clear.


My wife and I have two homes, both having been purchased in the last 4 -5 years.


Our primary residence is currently only in my wifes names (as is the mortgage) which has been on a 5 year fixed rate mortgage that will soon be up for renewal.


We got married just over two years ago


I have previously read an article which indicated that if I am put on the titles for the property and/or if as part of the remortage the lender requires me to be named on the mortage (as my wifes husband), I will be liable to second home tax on my part of the ownership


The mortgage on the property in question is circa £300k, the current value of the property would be circa 500 - 550k


Any advice greatfully received


Regards


E

silvercar

A married couple can only have one PPR between them, so whether you are on the mortgage or not, you have a potential CGT liability if you sell the other property.

eddster

Hi Silvercar thanks for your response I think maybe I was not clear in my question, we are not planning on selling the prepoerties and understand our CGT position.


The concern is that as I will effectively go onto the property deeds and mortgage and take on a new part ownership of the property I will have to pay an element of Stamp Duty Land Tax (SDLT) surcharge?

eddster

My initial understanding was that I will have to pay SDLT higher rate 3% of what will become my £150k share of the £300k Mortgage? So £4500.

xylophone

https://www.moneysavingexpert.com/news/2016/11/married-and-both-own-homes-watch-out-for-stamp-duty-when-remortgaging/
may be worth a look.

SDLT_Geek

Changes made to the higher rates by the 22 November 2017 Budget mean that the 3% surcharge does not generally apply for transfers between spouses who are living together. There is some guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09820

eddster

Thank you xylophone and SDLT geek,


I had seen that page SDLT geek; the bit that got me worried is that in the example given on by gov.uk on that page "Mrs I" who is taking on half of the property from "Mr I" does not have any other property interests whereas my wife and I both own another home for which we both own and have a joint mortgage for? Not sure if that impacts the position?


Regards


E

SDLT_Geek

eddster wrote: »

I had seen that page SDLT geek; the bit that got me worried is that in the example given on by gov.uk on that page "Mrs I" who is taking on half of the property from "Mr I" does not have any other property interests whereas my wife and I both own another home for which we both own and have a joint mortgage for? Not sure if that impacts the position?

The example could indeed be better. It is not an objection to the new rule about transfers between spouses that you each own another property.