Stamp duty payable on transfer of equity on second property

Fatbritabroad

I've been asked if I would go on the mortgage for a relative of mine. Leaving aside the risk of being on the mortgage which in well aware of and have covered, am I correct that as I already own a house this would trigger a stamp duty charge of 3%

foxy-stoat

You are correct.

SDLT_Geek

It would only trigger the extra 3% SDLT if OP takes a share in the ownership of the property. Taking on liability on a mortgage does not necessarily involve having a share in the property.

Fatbritabroad

SDLT_Geek wrote: »

It would only trigger the extra 3% SDLT if OP takes a share in the ownership of the property. Taking on liability on a mortgage does not necessarily involve having a share in the property.

That's what I'm not sure of does it not constitute taking a share of property?

Fatbritabroad

I assumed you couldn't be added to a mortgage on a property without having an interest in it. Might be my fault for describing it as transfer of equity but that's what I thought it was. I ve been asked to be added to a relatives mortgage. I wouldn't have a need to be added to the he title of the property but assumed I couldn't do one without the other (as I say leaving aside any concerns about doing this fro a protection pov which is understood and covered)

SDLT_Geek

In the old days this kind of arrangement (where you get no share in the property) used to be called a guarantor mortgages. Now they are often called Joint Borrower Sole Proprietor mortgages. The SDLT implications (though in a different context) are discussed in this article: https://www.taxadvisermagazine.com/article/additional-properties