Stamp duty

davidmcn

Neeo wrote: »

re the 2nd home tax I am worried that if I pay then apply for a refund it gets refused.

On what basis would you be entitled to a refund? Was the rental property formerly your OH's main residence?

[Deleted User]

Neeo wrote: »

STAMP DUTY MARE!

Me and oh buying our new house. Offer accepted, mortgage offered, about to exchange. Hit a new hurdle ! Me oh has her name on her sisters rental property mortgage. we send off TR1 to transfer name off. Now waiting for this to happen. HOW LONG CAN THIS TAKE AS HER SISTER IS TAKING EQUITY AND CHANGING MORTGAGE COMPANY.
We were told tax duty would be £400 but now due to her name still not off its costing another £4500 !!!!! Which we have not Got.

Will we be able to get a refund if we do pay to it. We are currently living with parents and don't own any other home. The house me oh has is a rental with her sister that They purchased 15 years ago.

Is it with asking vendor to drop the price by 4500 or wait 4-6 to complete the deal at same.price.


Please any help would be great as don't want to lose out on house after this long.

Stripping it back to its most basic, remortgaging and removing a party from the title should take about 5 weeks on average in my experience. Sometimes quicker if not using the free conveyancers the lender provides.
So how long ago did sister start the remortgaging process and has that all been agreed now?

Its not as simple as just removing a name when there is a mortgage company involved as well

00ec25

Neeo wrote: »

The OH is not getting no capital from the OP. Her sister is taking all the equity and her new mortgage company wants to complete searches etc. This will delay the name coming off the mortgage.
My concern is that this will take too long for removal and the deal can fall through.?? How long can this take?

're the 2nd home tax I am worried that if I pay then apply for a refund it gets refused.

your concern is noted

now please answer the question already asked several times

did OH receive any share of the rental income from the property during the last 15 years: yes or no.

not getting any "capital" from sister does not stop her from having a beneficial interest. As already explained, she is a connected person, so no money changing hands is an oft used amateur attempt at tax evasion.

has she ever filed a tax return showing rent income ?

SDLT_Geek

Neeo wrote: »

The OH is not getting no capital from the OP. Her sister is taking all the equity and her new mortgage company wants to complete searches etc. This will delay the name coming off the mortgage. ...............

're the 2nd home tax I am worried that if I pay then apply for a refund it gets refused.

This does not seem to be a case where there is any question at all of OP and OH being able to obtain a refund of 3% SDLT if it is due on the joint purchase: OH never lived in the rental property.

But the 3% extra SDLT is not due in the first place if OH has no beneficial interest in the rental property.

kingstreet

Neeo wrote: »

How long can this take?

Typically four to eight weeks from application to completion for a transfer of equity where there is a mortgage involved.

00ec25

SDLT_Geek wrote: »

But the 3% extra SDLT is not due in the first place if OH has no beneficial interest in the rental property.

15 years and not one penny of rent received by the OH?

somewhat unlikely !

Thrugelmir

00ec25 wrote: »

15 years and not one penny of rent received by the OH?

somewhat unlikely !

Nor an (unofficial) agreement not to share any ultimate gain on disposal.

ognum

Also unlikely that the property has not increased in value in 15 years. Op you really need to carefully sort your finances out.

Talk to accountantabout CGT and the tax you partner was liable to pay on the rent she did or did not receive. If she part owned the property then she is liable for part of the tax on the rent regardless of if she was given it.

00ec25

ognum wrote: »

she is liable for part of the tax on the rent regardless of if she was given it.

that is technically incorrect - OH is / was co-owner with her sister,. Therefore she is not forced to share the income 50/50 (or in accordance with ownership % if tenants in common) since she is not married to her sister and can therefore simply agree a split with her sister which may be, for example: 0/100

hence i asked has she ever received any share of the rental income, not is she entitled to it

SDLT_Geek

00ec25 wrote: »

15 years and not one penny of rent received by the OH?
somewhat unlikely !

Yes, perhaps I am clutching at straws on behalf of OP. I expect we will never know, as OP has not been posting; maybe the consequences of what OH and her sister have done have become clearer to OP and OH!

Wouldn't it be good if OH found a clear declaration of trust from 15 years ago explaining that her "name" was on the title to her sister's rental property and she became liable on the sister's mortgage only to enable her sister to buy the property and it is held in bare trust for the sister.