Stamp Duty (Closed Thread)

tfa

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[Deleted User]

tfa said:

Hi All

i have a rather unusual situation in which I owned a flat with an ex partner, 2 years ago we parted and decided to keep the flat after failing to sell it. We rented it out and though we would try selling later. 

I purchased a property with my new partner who did not own another property. We knew we would have to pay the extra 3% Stamp duty. This was around £10,000 and we expected to get this back when the flat sells. 

The flat has been up for sale for a year and is empty. My Ex wants to buy elsewhere but can’t because of this flat (She is buying shared ownership) There is almost no equity in it due to SW London declining since 2016. 

I have a meeting with the bank as my Ex is in agreement to just transfer ownership to me to break free, this is fine by me as I can then rent it out. 

I don’t know if the bank will think I can afford it on my own or not, I imagine with my partner it will be fine.  So here is the unusual situation. I don’t believe I am liable for any stamp duty on the transfer , property is worth about 250,000. Will may partner become liable for 2nd property stamp duty penalty? Even though we already paid one on our current property. It looks to me as if we could end up with a penalty on both our properties. 

Any advice would be great as our lawyer also was not sure, neither was a broker that I asked. 

The answer is the same as when you asked last year.  The higher rate of SDLT will apply and not just be on the sum you pay, but also on a proportion of the outstanding mortgage debt.

https://forums.moneysavingexpert.com/discussion/6073116/stamp-duty-2nd-home

Anything will sell if priced correctly.  If it's been on the market for a year and you've had no offers then you're asking too much.