Stamp Duty for becoming Tenent in Common

fishfingersandwich

Hello all,

I own a house, that my parents now live in. I don't get rent but they enjoy living there.

I now live with my partner, we have lived together for a year.
She owns her house and has a mortgage on it.

If we become tenants in common, which i get say a 20% share, would I have to pay stamp duty on this? If the share is below 40k would it be stamp duty free?


Also if we sell this house in the next few years to buy somewhere bigger, would I be exempt from higher rate stamp duty on the new house, because I would be selling my 20% share in my current residence?

Thanks for any response

da_rule

Which property are you going to end up with 20% in? The one your parents live in or your partners?

fishfingersandwich

da_rule wrote: »

Which property are you going to end up with 20% in? The one your parents live in or your partners?

In my partners.

I already own the one my parents live in 100%

da_rule

There are further considerations, if you are acquiring an interest that is worth less than £40,000 then there shouldn’t be any stamp duty. But if there is also a mortgage and you are taking on some of the liability for that then there may be stamp duty.

fishfingersandwich

da_rule wrote: »

There are further considerations, if you are acquiring an interest that is worth less than £40,000 then there shouldn’t be any stamp duty. But if there is also a mortgage and you are taking on some of the liability for that then there may be stamp duty.

The mortgage is £150k on a £250k property.

I don't mind paying a little bit of stamp duty become a small % owner of my partners property, i already pay towards the mortgage and bills but it is all in her name at the moment.

I am very concerned about paying the extra 3% stamp duty when we buy a next house, which could be £600k+ house.

If becoming a 20% owner and then selling the house we live in meant I was covered from paying the extra rate it would be a great help.

da_rule

Have you spoken to the mortgage lender yet to check they’re going to consent to the equity transfer?

Grey_Critic

Your solicitor will be able to tell you the legal implications, you will not be the first person to face this.

SDLT_Geek

OP, if you are married to your partner or in a civil partnership by the time she sells the present home, then there is no 3% extra SDLT problem anyway on a sale by your partner and a joint purchase of a new home.